Since August of 2009, the second Monday of each month has been devoted to showing readers return on investment statistics and how to maximize results. For this month’s return on investment installment, I am focusing on the possibilities of paper-based incentive programs. The return on investment of these incentive programs, as a WorldatWork.org article pointed out, is dependent on two factors, how the incentive program fits a company’s workforce and what is identified as the definition of the return on investment.
Making the Best Incentive Program for your Organization
Designing an incentive program that is easily accessible and communicated through different media is one of the best ways to make a program successful. Paper-based incentive programs are ideal for organizations with limited access to computers or the internet in the workplace. This kind of incentive program can be communicated by managers to employees during shift meetings, through posters displayed in break rooms and hallways and via flyers and hand outs.
Defining the Incentive Program Return
Depending on the goals of an incentive program, defining the return on investment can vary from company to company. For many of the paper-based incentive programs I have helped administer, the goal is often safety related. In these cases, organizations will establish benchmarks at the beginning of the incentive program and then track these metrics regularly. For example, one client of mine calculated that each lost time accident resulted in an average loss of $10,000 due to lost time and productivity. When the company implemented a safety incentive point certificate program, its goal was to reduce the number of lost time accidents and associated costs by improving safety awareness. When employees demonstrated safe behavior or submitted feedback to improve safety in the workplace, managers awarded point certificates.
The company tracked the cost of its lost time accidents and in the course of 4 years of the program, was able to reduce this cost by 40%. The results of this particular program are considered quite typical. In fact, The Incentive Performance Center reports that when incentives are targeted across an organization, an average of 45% increase in performance can be expected.
Paper-based incentive programs are one way that an organization can make an initiative easily accessible to workers and achieve a high return on investment. Check back next month on March 8th when I will discuss the return on investment of healthcare recognition programs.
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