Employee incentive programs – A key to the survival of Startups
The idea of entrepreneurship is the new vogue among the youth. Even the government of India is promoting entrepreneurship as a medium to recover the economy. India is home to 107 unicorns, with a total valuation of $ 340.79 Bn. With such a craze for startups, entrepreneurs are becoming role models for students.
However, as it is said “A smooth sea never makes good sailors” Similarly, Startups also come with their own set of problems where the competition among the different companies remains one of the biggest challenges.
However, in such a difficult situation one thing that might ensure the survival of the startup in this cutthroat competition is the loyalty and commitment of employees as it is the human resource that is the most essential asset for any company. So it’s better to consider this fact when you hire developers for startup. Employee incentive programs play a crucial role in ensuring that the employees remain committed to the startups.
Employee incentives are the bounty and bonuses that employees receive which keeps them motivated to the goals of the organization. There can be different types of rewards which are mainly divided into two categories that are Monetary and Non-monetary rewards. These incentives help the employees to feel motivated and work up to the best of their capacity. It keeps the morale of the employees high even when the situation turns a bit adverse in nature.
By implementing incentives, you can keep employees accountable for their work while fostering a culture of motivation, self-management, and accountability. For instance, you could provide a reward at the end of each month to the employee who showed the most consideration for their coworkers and went above and beyond to be of assistance.
You may express your gratitude for your staff and their efforts to your business by including enjoyable and lucrative incentives into your corporate culture. Furthermore, incentives pave the way for the advancement for improvement in the other employees too, where they are also encouraged to see their co-workers receiving the incentive for their good performance. Thus, changing the entire culture of the organization where employees will organically align themselves to the cause of the firm, making themselves more and more effective and efficient in nature.
There are various types of monetary bonuses that you may provide to your employees. It can be as simple as providing a small amount of cash at the end of some task. These types of bonuses are taken as a token of recognition of employees’ efforts in challenging situations. Receiving a small amount of cash can go a long way in making your workforce remain loyal to the company and work up to the best of their capacity.
Project-based bonuses are yet another type of lucrative reward that you may choose for developing team spirit and comradeship among the employees. Such bonuses make all the members of the team work in sync with one another, where everyone wants to give their best to the team. Thus, Each team member would feel a sense of commitment towards the goal of the team and end up becoming fruitful to the organization.
However, if you don’t want to allocate a certain amount of money for such bonuses, Profit sharing can be a way to assist you in such a situation. Profit sharing is the most common type of incentive used by startups all around. In this method, the company chooses a certain percentage of revenue that will be shared among the employees in accordance with their performance and the goals achieved. Profit sharing makes employees feel involved in the process of running the business. Thus, keeping them organically attached and stimulating the best of their potential.
Although monetary incentive programs are really effective, Startups often don’t have enough funds to provide their employees with them. So, Non-Monetary Incentives can be used to bridge this gap.
Non-Monetary Incentives include a variety of components from something as simple as providing a gift card to a casual dress day in the office. Thus, it provides the management with a variety of instruments to suit the need and the purpose of the organization.
The most common type of Non-monetary incentive that is popular among all businesses is the vacation days for the employees. Who doesn’t like some time off from work? You can give them an all-expense trip to make them feel motivated. Even if that seems a bit expensive it might be shortened to a few luxury items like st dupont lighter, or a high-end smartphone so they feel valued for their contribution made to the organization.
Sometimes, Incentives don’t require even a single penny but appreciation on the part of the employer where the efforts of employees are recognized and praised. Public recognition or awarding them with the best employee of the month or maybe simply giving a handwritten note can go a long way.
Caring for employees is yet another method to provide non-monetary incentives to the employees where some simple sessions like Meditation, Yoga, Indoor Gym, or Family care leaves would help employees remain committed to the goal of the organization.
Organizing cultural events like Sports day, family day, a picnic, etc. also helps in building the team spirit among the employees where they might feel a connection with the organization that is not limited to the workspace only. Similarly, sharing dinner with the boss can also be a way to make the employees feel valued where they are not reduced to their capacity to work in the industry but are treated with respect and care. Thus, igniting the core of human values where the employees themselves feel inspired, wanting to give their best to the organization.
Human resource is at the heart of any organization. It is the people who are at the center. It is the people who make the best use of the tools and technologies available in the organization. Thus, the success of any organization is directly proportional to the commitment and loyalty of its workforce. Hence, preserving them remains a big task for any organization. It becomes even more important for the Startups which are trying to survive in the cutthroat competition. Therefore, Incentives become important for boosting the morale of employees.