At HJS Accountants we can advise businesses in the Southampton area on many aspects of business life. Here are some pointers for employee incentives...

Incentive schemes can have great benefits both for your business and your staff. Rewarding good performance motivates your star employees, and encourages others to emulate their achievements. However, there are pitfalls, so tread carefully when devising an incentive scheme. Here are some do's and don'ts:

  • DO reward results
  • DON'T reward activities
  • DO set targets that encourage employees to maximise profit opportunities
  • DON'T set targets that do not fit in with your overall objectives
  • DO reward results in proportion to the extra profit they generate
  • DON'T set upper limits to the amount that can be earned in incentive payments
  • DO use incentives to take overall pay to the high end of the market
  • DON'T tamper with basic pay levels - keep them at competitive market rates
  • DO use equitable criteria so that everyone feels equally motivated
  • DON'T forget to communicate the successes and failures to all concerned on a regular basis
  • DO fund incentive schemes from the additional revenues they generate
  • DON'T make promises you can't afford to keep!

Call us if you would like help in developing strategies for motivating employees and reducing staff turnover.

If you are in the Southampton area and are looking for help and advice from a team of professional accountants and business advisers, contact HJS Accountants.

Southampton Office

12-14 Carlton Place
Southampton
Hampshire
SO15 2EA

Tel: 02380 234 222

Winchester Office

6 Charlecote Mews
Staple Gardens
Winchester
SO23 8SR

Tel: 01962 842000

Reading Office

3 Richfield Place
Richfield Avenue
Reading, Berkshire
RG1 8EQ

Tel: 0118 9511 115

London Office

90 Long Acre
Covent Garden
London
WC2E 9RZ

Tel: 0203 470 0777