The value of incentives in small companies

Small businesses have a series of advantages compared to large companies when motivating their employees or generating client loyalty. Here are some tips to get your small team going…

The elements of an effective rewards program are the same, no matter the size of the company involved. Even so, the fact that small companies have a smaller staff and base of clients makes employee motivation and satisfaction key, as employee retention can be an even greater challenge, and when losing one unhappy employee can mean losing one-tenth or more of the business’ workforce.

Having a small staff also means it can be easier to ensure awards have personal significance, since the award planner is more likely to be acquainted with the recipient and his or her preferences.

Another advantage of small companies is their willingness to experiment as they do not need as many resources as large companies to come up with something new. Here are some tips for a successful incentive programme for small teams:

Long-term results
A reward program for small companies is more effective if aimed to increase benefits in different areas of the business for many years, rather than shooting sales up in the short run.

Reward behaviours
Awards for everyone. Create a rule structure equally challenging for everyone, but not out of reach. Important: reward behaviors, like selling a new product or additional service.

Memorable awards
A limited budget does not imply a low level award. Imagination is key in this sense, together with the fact that in a small office, where everyone works together closely can result in a memorable award, such as a well-thought gift and a personalised letter from the company President, or an on-the-spot recognition so the rest of the department can see who has done well that month.

Award the team
A good option is to reward all top performers with a team event, so no one feels left out. For team rewards, offer gift certificates, or a team lunch. If the budget is very tight, consider granting employees extra vacation time or flextime, it will surely be very welcome!

In conclusion, small businesses have certain advantages when awarding their teams: a stronger relationship among team members resulting in personalised awards; awards for teams that strengthen links among the members; and rewarding attitudes in small companies that will help in having satisfied employees, and consequently, in more benefits for all in the long run.