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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?
Gli incentivi sono un modo per le aziende di stimolare la crescita e motivare i dipendenti a lavorare sodo. Fornendo un incentivo o una ricompensa, i dipendenti ottengono un senso di realizzazione una volta raggiunto un obiettivo.
Ecco i principali vantaggi degli incentivi sul posto di lavoro:
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
Offrire incentivi per il raggiungimento degli obiettivi di vendita prende due piccioni con una fava. In primo luogo, sono ottimi per aumentare la felicità e il benessere dei dipendenti. Permettono loro di sfogarsi, vincere premi e rimanere felici al lavoro.
Questo può motivarli a rimanere più a lungo in azienda. Questi vantaggi migliorano la fidelizzazione dei dipendenti e impediscono loro di cercare altrove, evitando un elevato tasso di turnover. Questo è un aspetto positivo, perché un elevato turnover può avere ripercussioni negative sulla vostra azienda.
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
Gli incentivi e i premi per le vendite possono includere viaggi di gruppo che rafforzano le relazioni tra i dipendenti. Più persone potrebbero vincere e partecipare a questi viaggi, alimentando un senso di realizzazione e progresso reciproco.
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?
Immaginate di non vedere l'ora di ricevere un pacchetto di incentivi per poi sentirvi dire che ci sono stati dei ritardi e che dovrete aspettare altre 2 o 3 settimane per riceverlo. Sareste delusi, vero?
Spesso non comprendiamo l'importanza degli incentivi. Ecco perché ritardare gli incentivi non è giusto nei confronti dei dipendenti che lavorano duramente per raggiungere i loro obiettivi. Quando si aspettano una ricompensa per tutte le ore che hanno dedicato a un progetto, ma non la ricevono entro un periodo di tempo ragionevole, minimizzano il risultato ottenuto. Poi, quando finalmente ricevono la ricompensa, potrebbero non sentirla collegata agli obiettivi raggiunti settimane prima.
In questo modo non si rafforza un comportamento lavorativo positivo e i dipendenti non si sentiranno spinti a completare determinati obiettivi, sapendo che non saranno ricompensati immediatamente. Pertanto, un incentivo ritardato è in realtà un incentivo negato.
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.
Pertanto, fornire i premi in tempo è fondamentale. In caso contrario, i dipendenti non proveranno la stessa sensazione positiva e il programma di incentivi probabilmente non avrà lo stesso successo.
3. Building relationships
Il comportamento impulsivo sta definendo sempre più gli approcci aziendali, le strategie di prodotto e l'esperienza dei consumatori. È la natura umana. Pensate a quando cliccate per saltare una pubblicità su YouTube. Ora mettetevi nei panni del vostro team di vendita. L'incentivo è il video e il ritardo è la pubblicità. Ora ha senso, vero?
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.
Onora e riconosce direttamente il servizio dove il merito è dovuto. In questo modo, come datore di lavoro, convalidate una promessa fatta nell'ambito di un contratto, rendendovi una persona su cui si può fare affidamento.
I leader più saggi sanno che la chiave per motivare un team è coinvolgere i propri dipendenti con incentivi tempestivi. In questo modo si creano relazioni migliori e di fiducia, che contribuiscono a rendere più felice l'ambiente di lavoro e ad aumentare la soddisfazione sul lavoro.
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.
Con un programma di incentivi ben congegnato e l'utilizzo di un software per incentivi, potete assicurarvi che ai vostri dipendenti non vengano mai negati gli incentivi. Con l'automazione degli incentivi, non dovrete più dedicare il vostro tempo a calcoli e pagamenti manuali.
Il software per incentivi consente di configurare e gestire facilmente il programma di incentivi. Elimina il rischio di errori nel calcolo dei pagamenti e nella distribuzione ai dipendenti.
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.
The bottom line
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.
