Reward Incentives

Should You Use Open Or Closed Reward Incentives?

Reward incentives can be offered several different ways. The way that you offer your reward incentives will determine how many employees you will have to reward and the standards that you will have to set for winning those incentives. Each program has its benefits.

What Are Open-Ended Reward Programs?

Open-ended reward programs are programs in which a goal is set for a certain level of performance. Because a concrete level of performance has been chosen, it is possible for multiple employees to reach this level of performance.

Because many people can reach this level, you may have to pay out rewards to a greater number of people. The benefit is that you can set the level of performance to attain reward incentives any where you want to. All employees know that if they reach this predetermined level of performance then they can reap the rewards. They do not have to be the top performer to qualify, and they know exactly what they have to do to win these incentives.

This clarity and accessibility of the awards removes the prize from the hands of the top few performers and gives everyone an equal opportunity to win. Just don't set the bar too high or employees may feel like they are being set up to fail.

The drawback is that if everyone wins then you will have to pay out to give the reward incentives to everyone. You have to be prepared for this possibility because with open-ended reward programs it is a possibility.

What Are Close-Ended Programs?

Close-ended programs are programs that limit the number of people who can win. They are typically limited to only the top competitors. There is no actual level of performance set as a prerequisite for winning. Instead, you just have to be the best of the bunch. This type of program is easy to create a budget for because you know ahead of time how many winners there will be.

One of the drawbacks is that even those who perform well or who drastically improve their performance may not be the absolute top performers. For some employees, this may be discouraging. If the program or programs such as this are offered on a regular basis then the same employees may continue to win the reward incentives every time making other employees feel like they have no chance to win. This can defeat the purpose of motivating your entire staff.

What About Multi-Level Programs?

Multi-level programs combine the previous two programs. They allow for top performers to be rewarded in one manner while anyone who meets more modest predetermined goals will also receive a sort of award. This way everyone has a chance to meet at least the modest goals while the top performers can compete for the more exclusive, prestigious incentives that are waiting at the top.

Reward incentives can be offered with a variety of programs. Each type of program has its benefits and potential drawbacks. By examining your goals and your company, you can select the type of program that will be best to achieve your goals.

At On Point we help our clients increase their results by designing and executing unique incentive and recognition programs using the most sought after Sports and Entertainment Events to deliver the "Wow". For more information on how we can help you recognize your top performers, please contact us directly at 1800-809-1277.

Incentive Program Services Travel Reward Card Program Monthly Incentive Idea First Name: Last Name: Email Address: unsubscribe		View cart Print Reward Incentives Should You Use Open Or Closed Reward Incentives? Reward incentives can be offered several different ways. The way that you offer your reward incentives will determine how many employees you will have to reward and the standards that you will have to set for winning those incentives. Each program has its benefits. *What Are Open-Ended Reward Programs?* Open-ended reward programs are programs in which a goal is set for a certain level of performance. Because a concrete level of performance has been chosen, it is possible for multiple employees to reach this level of performance. Because many people can reach this level, you may have to pay out rewards to a greater number of people. The benefit is that you can set the level of performance to attain reward incentives any where you want to. All employees know that if they reach this predetermined level of performance then they can reap the rewards. They do not have to be the top performer to qualify, and they know exactly what they have to do to win these incentives. This clarity and accessibility of the awards removes the prize from the hands of the top few performers and gives everyone an equal opportunity to win. Just don't set the bar too high or employees may feel like they are being set up to fail. The drawback is that if everyone wins then you will have to pay out to give the reward incentives to everyone. You have to be prepared for this possibility because with open-ended reward programs it is a possibility. *What Are Close-Ended Programs?* Close-ended programs are programs that limit the number of people who can win. They are typically limited to only the top competitors. There is no actual level of performance set as a prerequisite for winning. Instead, you just have to be the best of the bunch. This type of program is easy to create a budget for because you know ahead of time how many winners there will be. One of the drawbacks is that even those who perform well or who drastically improve their performance may not be the absolute top performers. For some employees, this may be discouraging. If the program or programs such as this are offered on a regular basis then the same employees may continue to win the reward incentives every time making other employees feel like they have no chance to win. This can defeat the purpose of motivating your entire staff. *What About Multi-Level Programs?* Multi-level programs combine the previous two programs. They allow for top performers to be rewarded in one manner while anyone who meets more modest predetermined goals will also receive a sort of award. This way everyone has a chance to meet at least the modest goals while the top performers can compete for the more exclusive, prestigious incentives that are waiting at the top. Reward incentives can be offered with a variety of programs. Each type of program has its benefits and potential drawbacks. By examining your goals and your company, you can select the type of program that will be best to achieve your goals. At On Point we help our clients increase their results by designing and executing unique incentive and recognition programs using the most sought after Sports and Entertainment Events to deliver the "Wow". For more information on how we can help you recognize your top performers, please contact us directly at 1800-809-1277.