Why are Incentives Important? The Secret to a High-Performing Workforce

Incentives are more than just perks—they are a fundamental driver of economic growth, job performance, and societal well-being, especially in emerging economies.

With unstable job markets, fluctuating business cycles, and limited social safety nets, incentives at the workplace play a crucial role in keeping employees motivated, engaged, and productive.

But the impact goes beyond just businesses. Why sales incentives are important isn’t just a corporate discussion—it’s an economic necessity in regions where workforce motivation directly influences business sustainability and overall economic stability. 

Whether it's performance-based pay, skill-based bonuses, or health-linked incentives, well-structured reward systems can drive efficiency, support economic resilience, and even improve public health outcomes.

In this blog, we will explore the far-reaching effects of workplace incentives on job performance, business cycles, and population health, highlighting why the right incentive structures are key to sustaining growth in emerging markets.

Why are incentives important in the workplace?

Insentif adalah cara bagi bisnis untuk mendorong pertumbuhan dan memotivasi karyawan mereka untuk bekerja keras. Dengan memberikan insentif atau penghargaan, karyawan mendapatkan rasa pencapaian setelah mereka mencapai tujuan.

Berikut ini adalah manfaat utama insentif di tempat kerja:

1. Increases productivity

Productivity drives business, so what drives your employees to be productive? Appreciation, acknowledgment, and reward. Incentives offer something for them to work towards, helping them to hit targets and achieve goals. Thereby, it increases their motivation and productivity.

While not everyone will respond the same way to an incentive, it still sets a precedent for rewarding positive behavior and good work.  Give incentives to employees for increasing productivity.

2. Decreased employee turnover

Menawarkan insentif untuk mencapai target penjualan akan membunuh dua burung sekaligus. Pertama, insentif ini bagus untuk meningkatkan kebahagiaan dan kesejahteraan karyawan Anda. Hal ini membuat mereka bersemangat, memenangkan hadiah, dan tetap bahagia di tempat kerja.

Hal ini dapat memotivasi mereka untuk bertahan lebih lama di bisnis. Jadi, tunjangan ini akan meningkatkan retensi karyawan dan mencegah mereka mencari tempat lain - mencegah tingkat pergantian yang tinggi. Ini sangat bagus karena tingkat perputaran karyawan yang tinggi dapat berdampak buruk bagi perusahaan Anda.

3. Attracts new talent

Glassdoor put out an article on the best benefits to provide your employees where 57% of candidates reported that incentives are one of their top considerations when looking at job offers. So, incorporating incentives into your job benefit plan can be a powerful move that attracts top talent to your company!

4. Team culture

Insentif dan penghargaan penjualan dapat mencakup perjalanan ikatan tim yang memperkuat hubungan karyawan. Beberapa orang dapat memenangkan dan menghadiri acara ini, sehingga memicu rasa pencapaian dan kemajuan bersama.

McKinsey claims that productivity improves 20-25% in a company with connected employees. So, incorporating these types of team-building incentives will strengthen those relationships and contribute to better work culture.

Why an incentive delayed is an incentive denied?

Bayangkan jika Anda menantikan sebuah paket insentif hanya untuk diberitahu bahwa ada beberapa penundaan, dan Anda harus menunggu 2 atau 3 minggu lagi untuk mendapatkannya. Anda pasti kecewa, bukan?

Kita sering gagal memahami pentingnya insentif. Itulah mengapa menunda pemberian insentif tidaklah adil bagi karyawan Anda yang bekerja keras untuk mencapai tujuan mereka. Ketika mereka mengharapkan imbalan untuk semua jam kerja yang telah mereka curahkan dalam sebuah proyek, namun tidak menerimanya dalam jangka waktu yang wajar; hal ini akan mengurangi pencapaian mereka. Kemudian, ketika mereka akhirnya menerima imbalannya, mungkin mereka merasa tidak terhubung dengan tujuan yang telah mereka capai beberapa minggu yang lalu.

Hal ini tidak memperkuat perilaku kerja yang positif, dan karyawan tidak akan merasa terdorong untuk menyelesaikan pencapaian tertentu karena mereka tahu bahwa mereka tidak akan segera diberi imbalan. Dengan demikian, insentif yang tertunda sebenarnya adalah insentif yang telah ditolak.

Let’s explore this concept a bit deeper and discuss its reasons.

1. ASAP economy & instant gratification

The increasing digitization of business processes leaves no room for delayed gratification. In this day and age, we want things, and we want them now. With online shopping and apps that allow us to do almost anything at just the touch of a button, we’ve seriously gotten used to doing things and receiving the benefits instantly.

Because of this, we’ve come to expect instant gratification in all aspects of our lives - including in the workplace. It’s such a primal, natural response to have. We complete a task, get rewarded, and feel accomplished and satisfied.

Without having an enjoyable reward to look forward to when reaching a goal, your employees probably won’t feel as motivated to get to that point and, therefore, won’t be as productive.

So, businesses should be moving towards a no-delay incentive scheme and closing the gap between performance and payout. This will improve employee engagement in the workplace, and, by extension, they will contribute more effectively to business objectives.

2. Biological reactions

The human desire for instant gratification is driven by our primal instincts, which prioritize short-term pleasure. Adrenaline drives humans to reach their goals. This is only fueled by the impulse of instant gratification as it releases dopamine - the body’s ‘happy neurotransmitter.’

When the brain anticipates a reward or accolades, such as sales incentives rewards, it stimulates dopamine production. This chemical is associated with the cycle of pleasure, motivation, and reward—an individual experiences a rush generating alertness and positivity.

When incentives are delayed, employees don’t get that rush of dopamine that makes them feel good. So, they won’t correlate their hard work with feelings of satisfaction and won’t be as motivated.

Without the excitement and suspense of working towards a desired reward, there’s nothing to really look forward to. There’s no drive to complete the task at hand.

Our instinct that craves compensation in real-time can even be traced back to our caveman days. Our ancestors rarely knew when they were getting their next meal. They had to act fast and live in the moment.

Jadi, memberikan penghargaan tepat waktu sangatlah penting. Jika tidak, karyawan Anda tidak akan merasakan perasaan positif yang sama, dan program insentif Anda mungkin tidak akan berhasil.

3. Building relationships

Perilaku impulsif semakin menentukan pendekatan bisnis, strategi produk, dan pengalaman konsumen. Ini adalah sifat alami manusia. Pikirkan saat Anda mengklik untuk melewatkan iklan YouTube lebih awal. Sekarang, tempatkan diri Anda pada posisi tim penjualan Anda. Insentifnya adalah video, dan penundaannya adalah iklan. Masuk akal sekarang, bukan?

Instant incentives foster a culture that is open, interactive, and healthy. For example, one study found that immediately rewarded people for completing tasks felt more motivated and productive overall.

Even when the rewards were removed, they were still more engaged and interested in the work. This proves the positive relationship between instant gratification and motivation.

Anticipating things within a certain time frame adds structure and discipline to the lives of your employees. Also, quick incentives can cement trust, reflecting the value of an individual’s work.

Hal ini secara langsung menghormati dan mengakui layanan yang telah diberikan. Dengan demikian, sebagai pemberi kerja, Anda mengesahkan janji yang dibuat sebagai bagian dari kontrak - menjadikan Anda seseorang yang dapat diandalkan.

Pemimpin yang bijak memahami bahwa kunci untuk memotivasi tim adalah dengan melibatkan karyawan mereka dengan insentif yang tepat waktu. Hal ini membangun hubungan yang lebih baik dan lebih saling percaya, berkontribusi pada lingkungan kerja yang lebih bahagia dan meningkatkan kepuasan kerja.

4. Avoid delayed incentives

We live in a fast-paced, data drive world. Therefore, incentive management must be dynamic, effective, and proactive to provide value and efficiency to a business.

While a quickly dispersed incentive gives employees a spring in their step, a delayed one sucks the joy out of work. You can’t overlook this critical difference if you want to motivate your employees successfully.

Dengan memiliki program insentif yang matang dan menggunakan perangkat lunak insentif, Anda dapat memastikan bahwa karyawan Anda tidak akan pernah ditolak insentifnya. Dengan otomatisasi insentif, Anda tidak perlu lagi menghabiskan waktu untuk menghitung dan membayar secara manual.

Dengan menggunakan perangkat lunak insentif, Anda dapat dengan mudah mengonfigurasi dan mengelola program insentif Anda. Hal ini menghilangkan risiko kesalahan dalam penghitungan dan distribusi pembayaran kepada karyawan.

Automated solutions can streamline incentive programs entirely. This conserves time and increases payment accuracy so businesses can focus their resources on other important matters.

It also makes the incentives easy for your employees to redeem so they never have to wait around to be rewarded for their hard work. From digital gift cards and entertainment tickets to travel and straight cash, having incentive software helps you give your employees what they want.

Streamlining your incentive program is excellent for business and ensures that you never deny your employees their incentives.

Turn incentives into business growth with Compass

Incentive compensation is crucial for aligning employee performance with organizational goals, especially in emerging economies where motivation directly impacts productivity and economic growth.

Compass offers a comprehensive solution to design, implement, and manage effective incentive programs that drive results.

Key Features of Compass:

• Automated incentive management: Eliminate manual processes and reduce errors with automated calculations and timely payouts, ensuring employees are rewarded accurately and promptly.
• Real-time performance tracking: Gain insights into employee performance with real-time data analytics, enabling swift adjustments to incentive plans for optimal outcomes. ​
• Customizable incentive plans: Tailor incentive structures to meet specific organizational objectives and employee roles, fostering a culture of motivation and achievement. 

Integrating Compass into your organization's strategy can enhance job performance, stabilize business cycles, and contribute positively to population health in emerging economies. This strategic approach to incentive management benefits individual employees and drives overall economic development.​

Intinya

Employee incentives take up a large portion of a company’s budget, and with good reason! They are essential in rewarding your employees and showing them appreciation for their hard work. Thus, your employees stay positive, motivated, and more willing to give 110% back to a company that values them.

Delaying this gratification process severs the tie between hard work and reward. The two are no longer connected in the eyes of the employee, and their motivation takes a nose-dive. This is why incentives are delayed and denied.

Thus, it’s up to you to ensure that you have a good incentive system in place to keep your employees motivated and productive.