Incentive schemes remain important to employers for motivating employees during the recession.
According to Grass Roots’ Corporate faith in the power of incentives report, almost two-thirds (61%) of employers agree or strongly agree that, in times of economic uncertainty, there is a greater need to motivate staff with incentives.
The report, which surveyed more than 800 organisations, revealed that 91% of employers agree or strongly agree that incentives are a good way of gaining a competitive advantage in their industry, while three-quarters (75%) believe that they are good for morale.
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Sales performance was cited as the biggest driver for offering incentives to staff, with half of respondents using them to increase sales and 14% using them to thank employees for their work. A total of 64% said incentives drive a positive return on investment in their organisation.
Employers also indicated that their future incentive offerings would be tactical rather than strategic. Almost two-thirds (62%) said they agreed or strongly agreed that their organisation would introduce incentives to drive performance on a tactical basis in response to market conditions, but only 40% said their organisation had a strategic plan in place for using incentives in 2009.
Incentive programme ownership varies from business to business, with 22% of respondents saying it was under the sales team’s remit, followed by HR (21%), marketing (19%), and operations (12%).