We all like a bit of recognition if we have done a good job and getting a reward can provide the motivation to do even better.

There are many ways that you can choose to reward your staff and they can be a great way of keeping your workforce happy and motivated, which can only be good for your business.

Setting your goals

If you are thinking of introducing a bonus scheme at your company then the first thing that you want to do is evaluate what purpose you are trying to achieve by setting goals that have rewards and also what budget you have to work with.

Starting an employee reward programme can seem overwhelming at first and this is particularly the case when you are trying to provide incentives on a budget. Provided you are realistic with your targets and goals and exercise creativity with your rewards, you should be able to achieve the right balance.

Various bonus schemes

There are various types of bonus schemes that you can implement as part of the staff benefits that you can offer employees.

Individual bonus scheme

Aimed at rewarding an individual within your organisation, the aim is to set out a target or series of targets often over a 12 month period, where progress can be reviewed on a regular basis.

If you are in the manufacturing sector then you will most likely want to offer a productivity bonus but this reward for hard work and effort can be applied in the service sector as well.

Quality bonus

You may want to focus on the quality of work and how that reflects on your products, services or business overall.

Targets

Bonus schemes structured around targets are very often found in sales orientated environments with a bonus being paid if a specific individual meets a pre-defined target set in advance.

Team bonus schemes

 You may prefer to offer a team bonus scheme rather that focus on each individual employee and sometimes, there is a combination of the two, so that each person within a team has the opportunity to be rewarded for their individual efforts whilst contributing to a team target at the same time.

Company bonus scheme

A company bonus scheme can be a fair way of rewarding every employee regardless of rank or position, with an annual bonus based on a percentage of their salary. The amount to be paid will often be linked to the overall profit that the business has achieved and can be a great way of attracting new staff and promoting loyalty within your existing workforce.

What to offer

The rewards do not always have to be cash and although a boost to the wage packet is always welcomed, there is often a tax implication that reduces the positive impact of the money reward.

Gift vouchers can be very popular as they offer a fair degree of flexibility and can be quite a cost-effective way of rewarding staff if you have a limited budget. Providing a gift voucher for a local health spa or a leisure activity may cost the employer less than a cash bonus but the level of appreciation from the employee is often at the same level.

Only the employer can decide which is the best type of bonus scheme to offer to their staff but used in the right way, they can be a great way of recognising hard work, loyalty and a good overall performance.

Nathan Harper is a HR manager and consultant. He enjoys sharing his ideas on various business websites.

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