The Elements Ironstone Blog

Current news and trending topics for sales and financial industry professionals


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Relationship Management or Incentive Plans? Which Will Inspire Your Team?

Incentive plans should not be misconstrued as a means to motivate your team.  You first need to  build concrete goals and then inspire your team to reach each goal with conviction.    It is imperative to communicate overall firm goals with your team.  Group and one-on-one meetings provide an opportune time to discuss and evaluate strategies to reach each goal.  Allowing your team members the opportunity to contribute to the overall success of your firm will instill motivation, confidence and passion that incentive plans cannot do on their own.

Before implementing an incentive plan, make certain your team members are fully engaged and committed to the position they hold at your firm.  This will mean you, as a manager, must realize offering an incentive plan will not magically transform a disengaged team or team member.   In our blog, “Learn How to Make an Employee Incentive Plan Effective,”  https://aeschlapia.wordpress.com/2012/04/03/learn-how-to-make-employee-incentive-plans-effective/  we stressed the importance of being a good manager by guiding your employees to work on what is most important and then implementing an incentive plan as a reward.

Employee incentive plans are a significant component for firms wanting to stay competitive and on track with the pace of evolution in the workforce.   You will need to do your homework for your plan to be effective:

  • Recognize all factors that affect your team’s behavior.
  • Look at the type of culture you have in your firm.
  • Understand each of your goals and the processes you will use.
  • Develop a measurement system for each goal.

At Ironstone, we have found many employee incentive plans simply don’t reap their intended results because  they were implemented for the wrong reasons.  Don’t be fooled in believing that an incentive program will counter poor behavior, performance or disengaged team members.

Start your incentive plan after you have managed your employees to the level of being:

  • Engaged
  • Passionate
  • Productive
  • Loyal

Once your team is instilled with the qualities listed above, you can implement your incentive plan by including the following critical elements:

  • Identify your desired activity/goal
  • Develop the tactical plan and how employees will work toward achieving each goal
  • The amount of time allotted to obtain each goal
  • The reward for achieving the goal

Remember every aspect of your plan needs to be measured to ensure the program’s success in achieving each goal.  Make sure your firm’s strategic goals are concise and specific which provides team members a clear understanding of what is expected from them.

Goals should be challenging, yet achievable.  The incentive plan will be destined

 for failure if goals are interpreted as being unattainable.

A successful incentive program requires that each feature is suited to your team members’ interests.  Find out what motivates your team.  Adapting each element of the program to fit your team will provide you with engaged participants and enhance the effectiveness of the program.

Ironstone can assist you in strengthening relationship management at your firm which will lay the foundation needed to implement a successful employee incentive program.

Readers, we are curious!   What are your thoughts on employee incentive programs?

Follow us as we explore each of Ironstone’s Fundamental 4™!

• Strategic Planning
• Business Development
• Operational Effectiveness
• The Human Element

You won’t want to miss our next in the series: Business Development-Prospecting

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Learn How To Make Employee Incentive Plans Effective

Employee Incentive Plans have become significant components in firms looking to stay competitive and on track with the pace of changes evolving in the workforce. 

As humans, we have ups and downs; times when we can focus and times where we tend to lose focus.  As a good manager, guiding your employees to work on what is most important and in the most efficient manner, an employee incentive plan can be an asset in your toolbox.

Consistent and methodical communication is necessary when implementing an incentive plan. It will ensure employees understand what is expected of them while decreasing the likelihood of morale problems that result from misinterpretations of how incentives are awarded.

At Ironstone, we have found that many employee incentive plans don’t reap their intended results.  Making simple changes in your incentive plan will reward your employees and ultimately your firm.

Understand The Lifestyle & Culture Of Your Firm

When designing your incentive program, understand the unique lifestyles and demographic make-up of your staff.  It is important to understand your firm’s culture so that you can tailor your program and rewards accordingly.

Conduct a survey with your team-Find out what motivates them.   Remember, CASH isn’t always the #1 motivator.  Provide your employees with choices, including enough options so that something appeals to everyone. For example: gym memberships, virtual days, etc…

Keep It Simple-Employee incentive plans should be quick and easy to administer.

Recognition is An Important Component of Any Program-Provide acknowledgment, approval, and gratitude in your incentive program.  When employees realize that their contributions are important they are more likely to embrace the goals and objective of the firm.

Develop A Clear Set of Goals & Objectives-Goals should be realistic, achievable, and sincere.  This is the key to building credibility for your program. The best plans encourage the behaviors that create successful results.

 Four Critical Elements To Include In Your Incentive Program

1. The desired activity/goal

2. The tactical plan- how employees will work towards achieving the goal

3. The time allotted to achieve the performance level

4. The reward for achieving the goal

 

Employee Incentive Plans Are Not Just For The Employee.  Your firm will benefit with increased motivation, increased company morale, increased loyalty, and increased productivity. Implementing employee incentive plans have shown to be effective by resolving organizational problems because they align the preference of firms and employees.

Ironstone will help you implement a successful employee incentive program, identify gaps in your existing plan, and collaborate with you to develop a solution to achieve the results you are looking for.  We will work with you on creating detailed goals that drive results.

Contact us for assistance in starting and improving your employee incentive plan.

We want to hear from you!    What employee incentives does your firm offer? Share your best ideas here!  We always love hearing from you!

Follow us as we explore each of Ironstone’s Fundamental 4™!

  • Strategic Planning
  • Business Development
  • Operational Effectiveness
  • The Human Element

You won’t want to miss our next in the series:  Business Development-Prospecting