Flexible benefits – choosing a motivation scheme that works for you

Research shows that the more motivated and engaged staff a company has, the better the levels of work performance. Simply put, this translates into a more profitable business and it therefore makes sound business sense to invest in staff just as you would your customers.

There are a range of factors that influence staff motivation including the basics such as working conditions, pay and benefits. However communication, recognition and rewards can play a huge part in making staff feel valued and appreciated.

According to research conducted by the Chartered Institute of Personnel and Development (CIPD) – the United Kingdom's leading professional body for those involved in the management and development of people – motivated employees perform better, are less likely to be absent or quit.

Flexible benefits can help drive performance and improve staff motivation such as offering vouchers as part of a flexible benefits programme that stretches salaries further, or long-service awards that recognise and reward staff loyalty.

Vouchers are always a popular choice as they allow the participant flexibility in how they spend their reward. They can, for example, be used for simple sales incentives to focus sales staff on specific targets or products, as well as wider recognition for nomination schemes or awards for outstanding achievement.

However, this is not a short-term fix and to be truly effective, incentives and motivation programmes must be well planned, long term and consistent if they are to create sustained improvement.

Employee motivation schemes are most effective when the process of earning the reward and the reward itself is aligned with the employee’s lifestyle rather than have to be grafted on to it.

Choosing a gift voucher as a means of reward provides the power of choice for not just the individual but could also be for the whole family. The most important element is that the voucher should ideally be spent on a treat or special purchase rather than the weekly shopping.

Feedback from customers has shown that employers are also increasingly looking for cost-effective ways to offer benefits to part-time employees and others on lower salaries. At the same time these employees are looking for benefits that will enable them to make their salaries stretch as far as possible.

One way of doing this is to offer a variety of flexible benefits on top of any fixed package that is applicable to them. One option that remains popular with both employers and employees are schemes whereby employees can set aside a certain proportion of their monthly wages to buy discounted retail vouchers. This results in substantial savings for them over the course of a year on their regular supermarket and household shopping plus gives them the flexibility to save for bigger annual events such as a family holiday.

And, with year-end fast approaching now is a good an opportunity as ever to boost performance within the company, especially with the current credit crunch. Christmas is an expensive time for everyone so any opportunity to boost income will be welcomed with open arms by staff. Employees appreciate a well thought out incentive campaign as a chance to earn immediate rewards.

Whatever programme of rewards and recognition a company uses they must be clearly communicated, achievable and appropriate to the audience making in the form of e-shots, mailers and posters.

When it comes to rewards the more flexibility the better. Vouchers are the ideal solution as they can go towards reducing that Christmas shopping bill for seasonal treats at home.

However, like pets, vouchers aren’t just for Christmas; they are a popular incentive reward option all year round! We see a huge increase in voucher redemptions from long running incentive programmes as well as seasonal tactical campaigns in the run up to the festive season. So we know they work.

It is imperative that flexible recognition and incentive rewards are also used on an ongoing basis in order to provide an instant reward for a job well done.