Viewpoint - Viewpoint

Incentive programs have been around for a very long time, going back to the 1920’s when sales people receive watches, briefcases, etc. They are generally utilized in Sales – they tend to work well when there is a sliding scale based upon margins of each numbers of sales sold, customer service of the clients and retention of clients which in many cases is very important.

Throughout our lives, we receive rewards for behavior or performance, such as good grades in school, bonuses and incentives in the workplace, or increased commissions in sales positions. The behaviors associated with positive outcomes (like increased profits for an organization) are rewarded. We work hard, do a good job consistently we get rewarded, but in the same token, if we don’t work hard, fail at our job, we get fired…thus behaviors that are detrimental either to ourselves or an organization are also punished.

Incentive plans should be based upon the requirements of the company. Let us use the Third Party Recruiter as an example, they may have a salary, and a sliding scale based upon the sales they perform. The more they make, the bigger the percentage. This ultimately allows the individual motivation to close more deals -

Now,  let’s say a company believes that customer retention is important, they create a plan which increases compensation based upon customer service and retention, thus the agent will also make more by retention of client, and consistent recurring revenue.. Then the individuals will also attempt to apply more effort on customer retention.

In operant conditioning, a company must look within their organization, looking at what their biggest needs are to maintain consistent revenue, they apply an incentive plan based upon those specific needs, but they must also consistently monitor the employees, have a control of pre measurement, provide quantity and quality goals, based upon team and personal goals, keeping the team/individual motivated. Management must maintain training, monitor, motivate, equip and supply all participants, in order for them to attain the required goals

If you want a person to improve a behavior over a longer period of time, you need to supply a variety of positive reinforcements.. With incentives comes motivation, then self appreciation - A motivated team works so much better. It does more, produces better quality with better customer service, handles change easily, looks for new ideas and feels good about itself.

Which brings us to Maslow’s model of self actualization - Security, Money, Ambition, Companionship, Social reinforcement, realizing personal potential, self-fulfillment, seeking personal growth and peak experiences.
When a company focuses on the individuals potential, and helps them gain it, it allows for complete contentment as it raises self esteem, which takes us through other aspects of Maslow’s hierarchy of needs – A company is meeting the need of biological – food shelter etc, Safety – security order limits stability, belongingness – work group, Esteem – achievement mastery prestige, cognitive – education learning understanding, and Self Actualization realizing personal potential, self-fulfillment, seeking personal growth and peak experiences. For a company to do well it should constantly be meeting all those needs of its employees...


Incentives, Motivation and Workplace Performance- Research and Best Practices,' funded by the SITE Foundation and sponsored by the International Society of Performance Improvement. The study revealed that incentives increased individual work performance by 27 percent and team performance by 45 percent.

To condense my last Comment. 

Whether a company decides to motivate their employees with cash or tangible awards, many factors must be considered for the programs to work – One could implement a pay-for-performance plan that gives the hardest working employees the ability to make additional money every year, or a recognition program built around tangible awards that express gratitude to top producers or to workers who have improved their performance significantly during the year like a vacation, television or such like, but none of these will work unless the following are implemented -

-Clearly specifying the required behavior in order to achieve desired company outcomes, thus the employee is aware the needs of the company and maintains an effort to value those needs
With clear goals linked to organization objectives. Your employee can work as hard as possible, but it won't do any good unless people perform necessary functions that bring the organization closer to its objectives.

-Attainable goals. No compensation or recognition programs stands a chance of influencing behavior if the majority of employees feels incapable of achieving the desired level of performance. To make sure you don't set the goal too high, review the group's previous accomplishments.

-Training. In addition to the desire for success, people need knowledge and tools. Offer someone the most compelling compensation plan or recognition, but neither will work unless the individual has the ability to achieve the goal, it helps maintain and strengthen sales relevant actions.

-A measurement systems to monitor progress on a daily basis providing feedback on performance, promoting encouragement

-Job satisfaction. Few compensation or recognition plans succeed for long if they don't consider fundamental workplace issues, such as employees' role in job design, responsibility for quality of the finished product, and commitment to organizational goals.


Remember Reward is important, whatever you should decide to implement - but without some type of reward or compensation within your org. employees will ultimately feel unappreciated and will look elsewhere

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ABOUT KAREN MATTONEN, CAC, CSP

Karen Mattonen started a career in Human Resources when she served as a Recruiter for Snelling Corporation. Leveraging her tenure with Snelling, Karen founded Advanced Career Solutions in 1997 focusing on the  HVAC and Mechanical Construction industry. Her reputation for excellence is echoed in the satisfaction of clients and candidates she has serviced nationwide. Furthermore, Karen is esteemed for sharing her expertise in Recruitment Education, Ethics and promoting self-regulation for the Recruiting industry.

She has a new and future-oriented vision of what recruiting can and should become: a profession we can be proud of for its ethical standing, professional conduct and ability to build great organizations. Her doing-well-by-doing-right philosophy is shaking up the status quo in an industry that needs to be shaken. She does this with conviction, leadership, and a distinctive voice that cries out for change.

Outside of the HR community, Karen Mattonen has been cited by Microsoft as a resource in how to use Microsoft Outlook as an ATS. She has also served as the Marketing and Public Relations Director for the 3^rd largest city in Utah.

Her passionate and tireless advocacy has led her to create HireCentrix - The Pulse of H.R, Regulation, Retention, Recruiting and Risk Management www.hirecentrix.com.  Hirecentrix is a company dedicated to providing training to the HR, recruiting and staffing industries, which includes a special focus on the ethical and legal dimensions through offering a full service resource for individuals to share and communicate, obtain current and accurate information, acquire and provide education and learning within the quickly expanding, diverse and rapidly changing Recruiting and Human Resource climate.

Karen has achieved accreditation as a California Accredited Consultant (CAC) through California Staffing Professionals. She has also gained her Certified Staffing Professional Certificate (CSP) through American Staffing Professionals. (www.americanstaffing.net)

Click here to reach Karen via email.

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