I like to know about the various incentive schemes that can be announced to encourage the employees of a company. Please help me with ideas on the incentives or sample incentive schemes that can be designed for a marketing team.
The incentive scheme is to encourage the Marketing staff and also for healthy competition.
The Scheme should encourage them to co-ordinate among themselves.
Also to reduce gap between seniors and undertrained staff.
Please analyse yourself the Business from last financial year database.
Please divide last year Turnover by three calculate the profit on it @5% and divide the result by number of staff in your organisation including you and your office boy & driver . Declare to staff that this amount will be paid to all of them in maximum 4 installments in financial year apart from there declared salary ( Please do not consider there basic salary) .with this arrangement you will get best results.
For the marketing staff declare 0.25% incentive on the turnover .if achieved between the range 1/3 of turnover to last financial year turnover.
Additional incentive on Excess turnover will be paid @.75 % at Manager level and .5% to the Marketing Staff and .10% to the remaining staff.
This is a proven formula of success. this will ensure the staff financial security and stability.and Automatically the Business will improve.
Do not frame targets for individuals this will depress them in given situation.
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Hi, There are many incentive schemes that can be designed for marketing team. Some of them are:
1) Target based bonuses: Bonuses can be made available when people hit a minimum target and the amount increases with the improvement over the target.
2) Paid Holidays: Paid Vacations to some resort or holiday destinations when the marketing hits a goal or reaches a milestone. Again this can be more based on the top three performers or something like that, so that this maintains a competitive edge in the team.
3) ESOPs: Marketing team can be given esops based on their performance.
These are some of the incentive schemes which can be rolled out.
Incentive awards are a way of rewarding employees and others with cash, goods or holidays rather than increases in pay. Schemes can vary from national promotions to a prize raffle held by a small firm.
Rewards of goods or holidays will usually involve the use of a voucher.
Awards may be linked to sales performance, good timekeeping, safety or production records, or may involve participation in a lottery or prize draw.
Schemes may be intended to benefit employees or the self-employed, or both.
There should be increasing consistency in the ways that reward, recognition and incentives are offered to customers, staff and distributors. Bespoke awards, where the circumstances require a uniquely tailored solution.
Participants should always have the power of choice, enabling them to self-target and work towards things that are exciting or important to them.
You may be looking to get the most from your staff by increasing motivation, improving morale and encouraging efficiency.
Awards may be made by the employee’s direct employer or by a third party with an interest in the performance of the employee.
For example, a car manufacturer is more likely to give an incentive award to a person employed by a dealership than the direct employer.
It’s notoriously difficult to put together an incentive scheme that motivates all of its targets, and that continues to do so over an extended period.
Incentives that are always won by a small group of high performers, breed more resentment than motivation, while the high performers themselves soon become bored with the repetition of holidays, and activities that are open to them.
Types of Incentives There are Two Basic Types Of Incentive Scheme, Financial and Non-Financial Non-financial (and indirectly financial) Incentives These Include:- formal recognition/awards
Financial Financial incentives are useful for improving performance and can be self-financing. Profit-related and share option schemes bonuses
The aim of an incentive scheme is to improve the performance of your business, whether it is your employees, customer's or supply chain. As a result the most successful incentive schemes tend to be those matched to the individual's requirements, but which still appeal to the company as a whole.
You will find that with a little extra thought, allied to a willingness to be creative, can make a quantum difference to the effectiveness of an incentive programme
Introducing an effective system of incentives and perks can help you to recruit and retain valuable staff, reward performance and productivity. It can also help you get the best out of your employees.
Incentives are rewards relating to certain goals. Perks are benefits on top of basic salary. Incentives and perks can be financial or non-financial. You can also have individual and group or team incentives.
This guide will help employers understand the benefits of offering incentives and perks whilst outlining the different options available. It will also look at how you can decide what to offer and how to monitor the effectiveness of any selected scheme.
Well, the most important things that is related with any marketing team is to boost up targetted sells. As you want to provide incentive, the best for them will be to give some percentage of their sells. This will make them interested in selling high volume so as to increase their commission.
Put some offers like a trip to a holiday destination on fulfilment of a particular target, either in terms of volume or in terms of amount (choice could be yours).
Sometimes you may opt for offering gifts like cell phones, music players, etc. which are popular at the particular period of time so that they compete with each others to achieve.
Apart, you can keep some award on the best performer of the month which may encourage them to achieve something beyond your expactations. But, your incentive shall be delivered instantly on completion of the tanure so that they are encouraged to take the challange for the next season.
Performance related pay is perhaps the best example of an incentives scheme. Under these arrangements, employees receive remuneration commensurate with the results that they garner. Performance related pay is distinct from a bonus scheme; in the case of the former, salary levels are clearly defined in advance, and a higher salary is earned through better performance.
In the case of bonuses, which is also a type of employee incentive scheme, the employee may not know whether or not they will qualify for a bonus, and of what size it will be, until it is actually paid. Incentives do not necessarily have to be financial. Other popular employee incentives include extra holiday time offered to those who meet or exceed targets, or 'away days' for groups or teams that perform particularly well.
There are advantages and disadvantages associated with both financial and non-financial incentives and, indeed, with incentive schemes generally. In the first instance, it should be noted that incentive schemes can be divisive; they can sometimes cause rifts within a workforce if some employees are unhappy that they are not receiving them. This can be particularly pronounced where financial incentives are being offered. However, non-financial incentives can sometimes be less effective and, in the worst cases, can be seen as simply inappropriate by employees.
The purpose of an incentive scheme will always be to yield results, and in order for this to be successful the incentives must be attractive to employees. A poorly thought out incentive scheme can do more harm than good, while costing the company in question money.
It should also be noted that incentives and benefits are not mutually exclusive. There is no reason why both cannot be offered at the same time and, indeed, this can help to mitigate the risk of discontentment within your workforce. As such, while implementing an incentives scheme you may also wish to look at offering employee benefits. More information regarding this process is available in articles throughout this site.
There is a wide range of incentive schemes, each with different costs. They include financial and non-financial schemes, individual and group schemes, and short-term and long-term schemes.
The options Financial incentives can help improve performance and be self-financing.
profit-related and share option schemes bonuses commission Non-financial and non-pay incentives include:
formal recognition/awards vouchers extra holidays gifts company cars An incentive scheme can offer employees extra pay as long as they reach individual or group performance targets.
Some businesses allow staff to select their own benefits from a pre-defined list, eg staff might be able to choose between health insurance and a gym membership.
Promotion and training opportunities are not strictly incentives as they are ways of fulfilling business needs.
Negative incentives, eg threat of dismissal, may work in the short term but can decrease morale and loyalty.
Tax There are tax and National Insurance implications for most financial incentives and for non-financial benefits with an equivalent cash value.
Download information on PAYE (Pay as You Earn) and National Insurance contributions (NICs) from the HM Revenue & Customs (HMRC) website (PDF).
Other considerations You are required to treat married employees and those in civil partnerships in the same way. For example, if you have a benefits package that is available to an employee's spouse, it should also be available to an employee's civil partner.
Dear Anonymous: Based on reference to the following websites and based on my own thinking a few incentives schemes are suggested herein. http://www.creativemarketingincenti…http://www.hinda.com/?source=google… Source: http://www.thinkingmanagers.com/the…http://www.motivano.co.uk/Reward-an… 1) Performance Incentive – Fix a basic limit of performance and anything above that within a day/week/month shall be rewarded on a percentage basis or unit basis. 2) Performance Incentive – Based on performance during a time period a certain percentage of it is given as reward. 3) Incentive for ideas/suggestions – In the marketing area, incentive being given for suggestions received and accepted that resulted in improved performance over a length of time.. 4) Attendance Incentive – Weekly/Monthly incentives for 100 % attendance on a fixed amount basis. 5) Introduction Incentive - A fixed amount being given to employees who bring in new customers. 6) Technology incentive – An incentive for improving the technology and improved performance being achieved. Best wishes
Incentives schemes for marketing team have to be designed on the basis of performance. Based on your quarterly targets,half yearly targets and annual targets. If your business volume is good you can review monthly incentive strucutre also.
The performance reward can be like this. You can design slabs of 100%,102.5%,105%,107.5%,110% or you can go upto 125% also. This needs to be ascertained on individual basis. Once the structure is desgined on individual basis you need to design it on group wise performance. Hence an individual who earns incentive through his own performance will have more eagerness to contribute to his team as well as his team members. So the group performance will also be improved due to motivation among the team members. Group wise incentive scheme should also be designed.
The monetary reward of the performance can be fixed amount or a little percentage of the volume of the individual as well as the group. You can also plan half yearly achievers meet,annual achievers meet of the performing groups and individual according to your needs.
1) you can grant him leave 2) you can allow him to come little late for one or 2 days. 3) Gift him by means of bonds or shares 4) Pay extra bonus 5) pay a holiday trip 6) pay him LTC 7) IF he achieves something grant him promotion 8) Gift with any household goods if he exceeds the target 9) Give him some key role in company affairs 10) Give him some share from the profit he gained.
Initially plan your budget for incentive. Conclude an amount. Then u can plan the incentives.
The incentives can be given on 2 ways. 1. It is universal- Fix the target.the incentives starts from 80% to 120%.The incentive amounts is fixed like if 80% to 89% ach- 1000Rs. 91 to 100% 2000 101 to 120 -3000
2.The second plan is little typical but most attractive. Take last year sale in to consideration. If the team ach 10% more than last year 5% of their annual salary will be the incentive. if ach 25% they will get 10% of their annual salary.
In case if required for a propar plan if you give the budget details and employees details I may mail you the detailed structure.
Madhu R, Council Member on
This information comes from my own knowledge.
This subject falls in the field of Human Resources Management wherein new throries have been cropping up dimes a doqen.
You would be better off following the age old two practices, which are, pay by/for performance and piece bonus payments applicable in respect of service industry and production industry respectively. If you are marketing service, the yard stick is the achievement of sales target in terms of monetary value (Rs or dollars worth of sales) and production in terms of the number of pieces produced minus the one rejected by the quality department. Depending upon the area you are in, I suggest your adopting the relevant one.
The foundation of any successful sales and marketing plan is from a clear understanding of your customers and their needs.
1]Customers rarely present the same scale of business opportunity, and different customers will require different approaches to deliver the most positive return.
2]Clients should group their customers into more meaningful and profitable segments, and by understanding how to acquire and defend these most valued customers in a chosen market we help our clients plan for the future.
3]In many companies the sales force is the most significant and valuable investment that a sales and marketing organisation will make. As a key promotion tool in conveying company information it is crucial that any sales force design is aligned around the needs of the customers and successful companies will change outdated sales force structures in order to keep pace with market shifts. To do this successfully companies must devote significant effort to designing the sales force they need and have robust processes in place to make sure that it is implemented successfully.
you can fix targets for your marketing team and give them incentives either in cash or kind for fulling those incentives. you can announce bonuses during festive seasons to give a boost to your employees. you can give special incentives during new yaer or you can give incentive sto an employee who has shown signs of excellence in the field.
Since your's is marketing field, you need more contacts & publicity of your brand. Follow my "5 Formulaes" of incentive schemes to improve your business.
1) Offer incentives for getting new customers (or) retaining the existing customers 2) Offer incentives for those who came up with some innovative idea to increase your brand value with less time, cost & efforts. 3) Offer incentives for those who refers a result oriented marketing manager from time to time. 4) Offer additional percentage of incentive if they reached the specified turnover limits 5) Offer Vacation leaves for those who have achieved, accomplished some milestones from time to time
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