When It Matters

Motivation/Incentive Program

There are three strategies we use to increase employee retention: institute a system of objectives
and key results; two-way communication through dialogue and feedback mechanisms; and
behavior-driven performance incentives.

1.
a. Objectives and Key Results - was a key enabler coined and perfected by Intel
CEO Andy Grove in the 1960s and 70s. Intel was faced with increased
competition across the growing micro-chip industry and struck by why hiring the
smartest people in the world did not produce increased market share and profits.
Andy Grove developed the idea of Objectives and Key Results to refine thinking
and focus output. The results speak for themselves as Intel dominated the
microchip market through the 70s and still holds the majority market share today.
Implementing a process of objectives and key results provides definable ends
(Objectives) through measurable means (Key Results). More specifically,
Objectives define the “What” of a person or organization. According to John
Doerr in “Measure What Matters: OKRs: The Simple Idea that Drives 10x
Growth,” an objective is “simply what is to be achieved, no more and no less."
Objectives are significant, concrete, action-oriented, and (ideally) inspirational.”
Key Results are the measurable benchmarks to achieve the objective. Moreover,
key results monitor how to achieve the objective. As an example, an objective for
a human resource manager may be to increase employee retention. The Key
Results may be to launch a two-way feedback mechanism between employees and
managers, create SMART objectives (discussed below) for all employees, and
publicly recognize superior performance through marketing initiatives. A
corollary to OKRs is SMART Objectives--simple, measurable, achievable,
relevant, and time-bound. By creating SMART objectives and backing them with
Key Results, workers can create tangible goals that increase individual direction,
spurn personal initiative, and motivate workers—all superlatives that increase
retention and overall worker fulfillment.

b. Two-way communication - between employees and management is critical to

organizational success. However, banal communication flow in one direction
from management down to workers is not productive. Millennials continually
stress that dialogue and feedback enhance culture and increase ownership of
personal performance. Specifically, to increase motivation and incentivize
workers, organizations can institute daily and weekly stand-ups. Implemented by
many successful private, public, and nonprofit organizations, stand-ups require
decision-makers to literally stand up and dialogue with cohorts and managers—
the modern-day application of the Socratic dialogue. This dialogue must be rooted
in a space free from judgment and encourage vulnerability, what Brene Brown

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 calls a “rumble.” Rumbles encourage open, honest, and unbridled dialogue.
Stand-ups and rumbles, however, do not work for all employees. Social aversions
or personality conflicts negate true communal dialogue. As such, open fora must
also be coupled with effective feedback mechanisms that protect anonymity. This
can come in the form of reporting systems managed and led by the human
resource department that gives a voice to the voiceless. In this way, multiple
avenues of communication flow can be established throughout the organization,
both public and private. Increased communication leads to increased satisfaction,
decreased worker turnover, and better workplaces. An additional communication
incentive can be established that creates improvement contests. Submissions can
be solicited for submissions by employees for new and innovative ways to better
the organization. Many organizations, including those of Google and Amazon,
have benefited from intra-organizational technology demonstrators dreamt outside
established lines of effort. Public recognition and monetary rewards can further
incentivize this form of feedback. By implementing multiple communication
avenues workers can be given a voice and incentivize organizational
improvement.

c. Targeted reward initiatives: According to Department of Labor statistics,

monetary compensation and salary are no longer the primary drivers for workers;
however, money still matters. As such, performance incentives can be used
effectively. Management and human resource professionals must be careful,
however, with implementation and application. Monetary incentives should not
solely focus on outcomes, but stress and reward behaviors. Additionally, any
reward for superior performance must include public recognition. Millennials
continually report that public recognition is a primary driver for job satisfaction.
Regardless of the magnitude of the achievement, public recognition for a job well
done is paramount in motivating and incentivizing performance.

2. Tuition reimbursement: Appropriate tuition reimbursement can encourage employees to

take classes for improving skillsets for their careers. It will also benefit employees who decide to
improve their professional knowledge and create more opportunities for the company in many
ways. Studies show that people have a deep desire to succeed as their talents and capabilities are
being used to make a difference in their job. When people sense their action fulfilling a desire,
the employees will develop a sense of belonging and a feeling that the company is their company
(Entrepreneur, n.d.).
 

3. Work flexibility: Providing flexibility instead of working 9 am-5 pm, can improve
employees’ performance. If employees know the company trusts them to manage their own time
and finish tasks on time, employees will be more loyal to the company and more comfortable
providing what they can for the company. In short, employees will have more commitment
toward the job (Entrepreneur, n.d.).
 

4. Bonuses: The company can provide a yearly bonus to the employee who has perfect
attendance. Examples such as $1000 will be rewarded for employees who did not take any day

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off during the year. This is important because it can encourage employees to come to work every
day instead of taking a vacation (Sling team, n.d.).
 

5. Personal growth: Fitness classes, finance classes, new software learning classes, etc. can be
provided to the employees. These classes can help with individual personal growth that helps in
becoming more creative and improve problem-solving skills. Another advantage from this will
be the cost of the classes may be cheaper as more people sign up for the class compared to the
employees themselves attending outside the company (Sling team, n.d.).
 

6. Job security: Job security is one form of non-monetary incentive that can motivate people at
work. For example, receiving tenure or ending a probationary period can make someone feel
more secure and motivated to contribute to the company or organization. Once they feel like
their contributions matter, they may work harder to help the business excel. You can reinforce
job security by giving annual performance reviews in which you offer positive reinforcement and
constructive feedback.

7. Recognition: Recognition is also an important form of non-monetary workplace incentives.

Employers may offer rewards for hard work, achieving a goal or working with the company for
so many years. In many cases, companies offer a monetary reward along with recognition. An
employee of the month award is a common recognition that many companies use. Another type
of small recognition could include praising an employee during a team meeting. Publicly
praising an employee for their hard work can also show other team members the work ethic they
should strive to meet.

8. Professional development: Professional development opportunities can also provide

incentives to employees. Developing their skills can be an important motivator. Employers may
offer tuition reimbursement, send employees to conferences or seminars or develop an in-house
training program for developing skills. You could also begin a shadowing program in which
employees in your department work with colleagues in another area of the company to learn
more about the organizational process.

9. Promotion: The opportunity for promotion is an important workplace motivator. Promotions

offer the opportunity for growth and advancement and can be very satisfying and motivating.
They also help employees excel in their professional development. When an employee receives a
promotion, they usually have a higher sense of job security. Employees usually receive
promotions at the same time as a raise.

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10. Medical Benefits: With the aftermath of a global pandemic, now more than ever medical
benefits can serve as a phenomenal incentive for employees to continue to positively perform in
order to keep their job. Organizations and businesses that can provide medical and dental
benefits are ahead of the curve as it pertains to hiring and motivating employees to perform at a
high level. Especially those who have or are considering having a family, they can save
thousands of dollars in hospital bills after the birth of their children. COVID-19 has increased the
number of hospital visits, and having medical insurance is a critical benefit to have, especially
considering how unpredictable health and sickness can be. 

Resources:

Bell, A. (n.d.). 17 effective employee incentive program ideas for work in 2021.
SnackNation Office. https://snacknation.com/blog/employee-incentive-program/

Brown Brené. (2019). Dare to Lead Brave Work. Tough Conversations. Whole Hearts. Ebury
Digital.

Bureau of Labor Statistics. (2020). News Release: Employee Tenure in 2020. U.S. Department
of Labor.

CareerOne Stop. (2019). CareerOne Stop.

Careeronestop.org. https://www.careeronestop.org/businesscenter/trainandretain/manageandretai
nemployees/retention-strategies.aspx

Creative Group Inc. (2017, June 25). Incentives at Work: Motivation for Employees. Creative
Group. https://www.creativegroupinc.com/2017/06/25/motivation-incentives-workplace/

Doerr, J. (2018). Measure What Matters: OKRs: The Simple Idea that Drives 10x Growth.
Portfolio.

Domingos, P. (2018). The Master Algorithm: How the Quest for the Ultimate Learning Machine
Will Remake Our World. Basic Books, a member of the Perseus Books Group.

Entrepreneur, (n.d.). How to create a winning employee retention strategy.

https://www.entrepreneur.com/article/76456

Entrepreneur. (2020, April 22). Incentives at Work: Motivation for Employees. Creative Group.
https://www.creativegroupinc.com/2017/06/25/motivation-incentives-workplace/

Landrum, S. (2017, November). Incentive Programs That Motivate Millennial Employees.

Forbes. https://www.forbes.com/sites/sarahlandrum/2017/11/03/incentive-programs-that-
motivate-millennial-employees/?sh=632f8d2f23e2

Sling team, (n.d.). 25 employee incentive programs that work. Sling.

https://getsling.com/blog/employee-incentive-programs/

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The Mind Tools Content Team. (n.d.). SMART Goals: – How to Make Your Goals Achievable.
Time Management Training from MindTools.com.
https://www.mindtools.com/pages/article/smart-goals.htm

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