7 Fabulous Benefits of Point-Based Incentive
The traditional way of incentivizing and rewarding the employees always rely on cash or gifts, But nowadays Points are used. Now in the digital era, “Cash is the King” seems to be a cliché. Though it is still the king in many fields but for incentivizing the employees, it is no more much effective.
We may familiar about the benefits of Channel Incentives, Sales Incentives and Promotional Incentives for every organization. In this article, It has covered the benefits of using Point based system for incentivizing the employees over the cash incentives. One of the main reasons because which every company is going cashless is the ease to track and manage the performance of employees. Even the employees like to get incentives in the form of points so that they can collect the points and make a purchase of their own wish list.
Let’s take a look at Point-based Incentives are proving to be the winner when it comes to comparing between cash and non-cash incentives:
- More influential
Let say an employee wanting to buy something and he/she gets a chance to buy it from the points the company is rewarded. This will make him/her so happy and he/she will always remember how he/she earned it and this makes the incentive in the form of points more effective. If the stellar employees get rewarded in form of cash, 99 % are chances that he/she will buy something which is of his/her urgent need and this makes cash rewards less effective.
- Employees can exchange commodities with points
Points allow the employees to exchange them with various commodities. This always make excited among the employees and also motivates them to work more hard to collect more points for the desired commodities.
- No favoritism
The best part of point-based rewards and incentives is that it is designed and is managed by the digital system. So, there are no chances of any favoritism and it works absolutely fair for every employee. Thus, it brings out the fair winner.
- Easy performance tracking
A company can set short-term goals and reward the winner with points. These short-term goals are easy way to track the performance of employees.
- Easy maintenance
Point based system is managed and maintained by the software deployed in the company. This makes the HR member free of tracking of budgets, gift cards, etc. This all is easily managed by just a few clicks. A point-based system is very easy and quick to implement.
- Continuous rewards for every accomplishment
When points are the rewards for the employees, it becomes easy for the companies to reward them for their every achievement. Unlike cash, which is not possible to be the rewards on every achievement. Because of the budget restrictions.
- Motivated employees
Collecting more points to exchange them with commodities works as a great motivation for the employees. It is human nature to feel more excited and work more dedicatedly when they get an opportunity to buy something they have been longing for. So, this is a great way to keep the employees motivated.
A point-based rewarding system has many benefits when compared to the cash-based rewards. A company can assign points to every employee as well as to the channel incentives. This will encourage employee to work dedicatedly for the company without substantially increasing the budget of employee incentive programs.
In this competitive time, it is important to stay ahead and use the technology to give that edge to the company sales. Benefit One Thailand has designed a software to take care of the rewards and incentives of the employees. This can be easily implemented in the company and can be customized as per the needs of the company. Tell us your need here. We are standing by for your success.