Incentive Schemes or Cash?

Employers often don’t know whether to offer incentive schemes (such as travel, trips, excursions, social events, merchandise) or cash to help their company to achieve its goals. When you ask employees what they want, they generally say ‘more money’ – but salary increases or annual bonuses are not always the best way to motivate staff. Non-cash rewards such as merchandise and travel can be a far more effective way to improve performance, boost staff morale and foster company loyalty.

Why do non-cash incentive schemes work better?

· They provide a lasting reminder of the achievement and the positive feelings that go with it.

· They offer the rewards that can be shown to others or talked about –and it is socially acceptable to ‘boast’ about the achievement. The same cannot be said for cash.

· They provide a guilt-free form of reward, often something employees would not otherwise do or buy, whereas they may feel guilty for not spending cash on necessities.

· They have a higher perceived value. The actual cash value is secondary to the recognition.

· The employee’s family is often involved in the reward selection and the reward selection and the reward chosen may benefit the whole family.

· Extra cash in the monthly pay packet disappears into the bank account or wallet. In fact, 72% of people receiving cash rewards use it to pay bills, can’t remember what they spent it on, or don’t even know they received it!

Task V. Work in pairs and decide which of these words and phrases are a) material benefits? b) non-material benefits?

profit-sharing scheme

non-contributory pension plan

fulfillment

company car

autonomy

to feel valued

to be acknowledged

commission

staff discount

attendance

reward

appreciation

on-time bonus

compensation plan

positive feedback

personal development

praise satisfaction

private medical insurance

How would you rank them for yourself, as an employee?As an employer?

Task VI. Read the following dialogues. Try to guess the meaning of the business idioms given in bold. Give their Russian equivalents

1. A:If this scheme goes through, it'll be the end of our jobs here. We've got a lot to lose.

B: All right, you needn't spell it out.

2. A: The new plant should have come on streamin March. Now it's been set back another six months.

B: But we still have to pay rent for the site to the Development Board—so that's another half million down the drain.

3. A:I see the auditors have queried your figure for 'goodwill' in the balance sheet.

B: Well, any business is worth more than its total assets. We're not just buildings and machinery; we're a going concern.

4. A: How do you go about costing overheads in the long term? You can't possibly tell what prices will be like in five years time!

B: Well, it's all done by rule of thumb,I must admit. You develop an instinct for these things...

5. A:How about you handling the negotiations with the union?

B: No thanks. That's your pigeon. I'm hoping to steer clear ofthe union for a while.

6. A: We must go straight to the top. I want a heart-to-heart talkwith the Minister.

B: And don't be fobbed offwith promises of 'public enquiries' and 'working parties'...

7. A: Busy?

B: I'll say. I'm up to my eyes in work!

8. A: That's a very smart new briefcase.

B: Yes, isn't it? I gotitfor a song, too, from a man I know... Actually I suspect it fell off the back of a lorry...

Date: 2016-01-03; view: 3145