Motivating employees: Incentives or Perks
Motivation is the key to success right? But what motivates employees better- let’s find out!
You hear a lot of motivational talks these days. There are hundreds of motivational gurus telling you how to behave with employees and yet make them stay accountable to their tasks. While perks and incentives are great to motivate employees, companies always look for ways to keep employee motivation on the rise, turnover rates at an all-time low, without spending money! Yes, that’s the truth, like it or not. But let’s see if it is possible to keep employees happy with perks and skip the incentives or not!
How perks work?
Different companies have different policies, and depending on the regions some are required by law to provide medical insurance, dental insurance, holidays and what-not. Perks are essentially items that do not directly influence costs to the company. While having said that, there are companies who consider sending their higher-up employees or employee of the year on trips and provide paid vacation. But is this enough to keep employees motivated? Keep reading.
There is a difference in income in our society and that is the hard-truth. Two people in different designations can easily have a huge difference in income. This is where the incentive part comes into play. For mid-sized companies or small businesses it is crucial to have loyal employees functioning at optimum level. This is why such companies provide quite a few incentives for employees who work at a lower wage there. This may include rental allowance, extra payment for work done beyond working hours and several other financial benefits. Economic stability is one of the most important things in low-income households, which is why people holding such job would rather stick to a company which provides incentives over perks.
Donating profits to employee’s favourite charity is old trick
There are companies who boast on sharing profits with employees. But they have a trick here! They generally ask employees, or even sometimes “employee of the month” to choose their favourite charity where the company profits would land up. This may be fine for employees with a high-income, but for those with low-income this seems to be a bit tricky and clever way not to provide bonuses to the employee and instead carry out a CSR (corporate social responsibility) project while trying to make the employee a part of it.
It is safe to say the low-income employees would much rather have incentives over perks while higher-ups can feel benefitted from perks only.