Many companies offer incentives to their staff, however only a few have a consolidated strategy behind them. At Genesis we decided to take an objective look at how incentivising staff can impact on a business.
We conducted a study on our own staff (50 people) to find out whether incentives are effective at increasing revenue and what sort of incentives work best.
To do this, we tested some different ways of rewarding staff over the period of a year to see which ones generated the most return and then we conducted a survey with our employees to ask what kind of incentives they were most motivated by. Here is what we found.
Incentives grow profits
We discovered that all our incentives increase revenue. By comparing the schemes we run, it emerged that a big, long term incentive generated £83,000 a week on average. A small, short term incentive brought in £84,000 a week on average, whilst a medium sized, medium term incentive made about £108,000 a week.
Rewarding staff can be rewarding
Incentives do not just help to make money though – 73% of our staff said the mood in the office was improved when a reward was offered.
It also arose that 71% of people felt more motivated by team challenges rather than individual ones. In fact, 98% of respondents claimed incentives are good for team building.
Medium term incentives are effective
When asked whether they were motivated most by small, medium or big incentives, respondents gave mixed responses. 35% preferred big, long term incentives, 34% favoured small, short term incentives and 31% preferred medium, medium term incentives.
However, the experiment demonstrated that medium, medium term incentives were by far the most effective, generating £25,000 more a week on average.
People are motivated by money and free holidays
Finally, we investigated what kind of incentives people felt more motivated by. Respondents felt motivated by money (40%), free holiday (29%), time off (23%) and drinks (2%).
Our conclusions? Incentives do increase revenue; medium sized, medium term incentives are the most effective, even though employees may not realise it; and when implementing an incentivisation scheme, bear in mind that people are most motivated by money and free holidays.
By Patrick Bell, Managing Director, Genesis Associates, a recruitment company that specialises in finding the best talent across engineering, sales and the creative industry. Providing expert guides to enhance candidates’ existing skills and relocation support for global hires, Genesis Associates provides the full package.