When running a business, setting up staff incentives can be a good way to keep your employees motivated and get the best results from them. But, by keeping them engaged in your business, you can also save your company money.
Incentives companies in the UK today, like Corporate Rewards, offer many incentive schemes with the aim of maintaining staff engagement. Such schemes, from employee recognition to sales incentives, can help save businesses money. With this in mind, here are some key ways incentivising your staff can cut your company costs.
Saving on recruitment
Having good incentives in your business can encourage staff to stay with you, which can save on recruitment costs. After a couple of years in a company, employees might get itchy feet and feel they’ve got everything they wanted out of a job and decide to develop their career elsewhere. However, if you offer them more of a reason to stay they’d be more willing to remain with your company for longer.
Employee recognition schemes, such as setting staff development goals and rewarding them for their achievements, can show you really value and appreciate them and the work they do. This can also go a long way in keeping them happy in their role, boosting their loyalty towards you and choosing to remain a dedicated employee of your company. In turn, this can save you on money you’d otherwise spend on recruiting new staff. When you consider factors like hours spent putting together job advertisements, reading through CVs and interviewing candidates, along with the costs to pay for recruitment agencies or to put out job ads, this can be quite a saving.
Saving on training
The saving you make on recruiting, can, in turn, save your business money on training up new staff. When a new person is hired for a job, they often won’t be able to hit the ground running and will need to be trained to match your company’s way of working. They’ll probably also need to be trained to use to new IT systems and follow new work processes, for instance.
If you set up incentives that help keep your staff in your company, however, this type of training won’t be necessary. You can therefore save on hours of training sessions or workshops, which take staff out of their day-to-day work and can cost your company money over time.
Saving by achieving more with less
Setting up incentives to help motivate your staff to work harder can also save your business money, as employees can achieve more in less time. For instance, a sales incentive scheme, where salespeople win a prize if they hit a sales target in a given amount of time, can encourage a team to work faster to achieve their goal.
As a result, employees can hit sales targets in a quicker space of time which can help increase your sales and, in turn, your company profits. Having a team that achieves more at a quicker pace can mean your business can achieve more with fewer people. While you might want to build your team in the near future, this means you can run your business for longer without having to expand your workforce.
Saving by retaining a stronger team
By keeping hold of your staff, making them feel valued, and motivating them to work harder, you can end up with a strong and effective workforce that knows and understands your business.
They will be highly skilled and experienced to do their jobs to the best of their abilities. They will have also adapted to working well together, allowing strong relationships to develop with each other, as well as with external customers or clients, depending on your business. This can give you a more equipped team, that is loyal to your company and willing to do more for your business.