Incentivise your staff to do the right thing

Incentivising your staff to do the right thing can be harder than you might first think. Many incentive schemes focus on profit and not customer satisfaction and this can give rise to odd behaviours that can ultimately lead to a drop in profits.

CEO – Andre Alford – describes the optimal incentive approach that will ensure your customers, staff and shareholders are kept happy.

  • Focus on final outcomes
    • Ensure that customer satisfaction on all main aspects of product, service, delivery, aftercare and returns are ALWAYS measured and reported at board level
      • Depending on your business, this can be done via face to face conversations, phone calls, emails, surveys, Trustpilot, Google reviews etc
      • At no point should people that would have the incentive to hide poor customer satisfaction be allowed to measure and record customer satisfaction
  • Team bonuses MUST be tied directly to customer satisfaction regarding their deliverable function
    • For example if the product gets good satisfaction levels, but the returns process gets poor satisfaction levels then that should be reflected by a smaller bonus for the team responsible for product returns
    • Bonus don’t necessary need to be in cash form, they can be share options or in the form of other employee benefits
    • The team bonus needs to be split equally among the team either as an equal amount each or fixed percentage of their wages
  • Team bonuses should only ever be MULTIPLED by company performance
    • This protects the companies cashflow by reducing the need to payout bonuses during an industry recession or future pandemic
    • It incentivises the staff to support company performance as well as making the customer happy
  • Create a modular entrepreneurial culture
    • It is vital that within teams that you have an entrepreneurial culture that allows the team to optimise its operation and get as bigger bonus as possible
      • The CEO should spend quality time with each team to nurture this culture. However, the CEO needs to be relaxed about how and where the team solve their problems.
  • Consider setting up an official mentor system for young employees
    • Identify weaknesses in new recruits and aim to bring them up to acceptable standards within 6 months. Don’t forget to reward them if they succeed or review their position if they don’t

If you would like a 1-2-1 with a Chartered Marketer to explore how best to incentivise your staff, then please book here.

Published by Andre Alford

As a registered Chartered Marketer since 2013, Andre has supported the growth of four businesses totalling £61m in combined additional revenue. He has full service marketing experience ranging from product definition to organizing tradeshows, PR campaigns and advertising campaigns. Previously a Chartered Engineer too, Andre is a person of considerable vision that has enabled him to come up with multiple innovative ideas and patents. His management experience comes from managing large teams, large projects and from being a director on the board of a web-directory service. Andre’s management style is a coaching-type one, where he enjoys helping others to discover and exploit their natural talents.

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