How to do a SWOT analysis
SWOT analysis is a very important tool for opening, planning and running a business, respectively, and the question “how to do SWOT analysis” is of particular importance in the life…

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Coronavirus is considered force majeure ?! How to foresee a contract or supply breakdown
The spread of the coronavirus COVID-19 officially received pandemic status, i.e. global epidemics. However, the effect for the business became obvious much earlier: companies faced with non-fulfillment of contractual obligations…

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Force Majeure Recognition Procedure
If, among the possible list of force majeure, the contract indicates “extraordinary circumstances”, “epidemics”, “actions of authorities”, “acts of authorities”, etc., this should be sufficient to initiate the procedure for…

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How to stimulate employees, or about the mistakes of material incentives

The question of how to stimulate employees is one of the most important in business, no doubt. Errors in the motivation of staff in the workforce can lead to a decrease in labor discipline or demotivation of staff. As a result, this can reduce production and damage the business. About this article on Entrepreneur-Pro.

how to stimulate employees
How to stimulate employees, or about the mistakes of material incentives

What mistakes of motivation of employees are considered the most common?
We’ll list a few common mistakes made by managers and hope that they will help you better understand how to motivate employees and thus improve your business.

Error number 1. Failure to pay remuneration obligations
In this case, employees are demotivated and eventually cease to trust management, and some even leave the company.

Mistake # 2. Premium payment guarantee
If employees are encouraged with guaranteed bonuses, they often perceive the bonus as part of their salary. They do not need to make an effort to obtain it. And if you decide not to pay the premium, then you will receive a wave of discontent in response.

Mistake # 3. Overstatement of plans (standards)
In this case, the employee does not seek to implement the plan, because its implementation is simply impossible. This incentive scheme for employees will not lead to anything.

Mistake number 4. Copying one or another motivation scheme without taking into account those features that are available in a particular unit of the enterprise.
Any business unit has its own specifics, and this must be taken into account when developing schemes and methods for stimulating employees in an enterprise.

Error No. 5. The complexity of the selected motivation scheme.
In this case, the employees of the enterprise do not understand exactly how the motivation scheme works, and what is required of them to receive a bonus. But the motivation scheme encourages employees to perform work, and therefore should be understandable to them.

Mistake number 6. Stimulating those employees who show the best results.
In this case, over time, the rest of the employees will consider that they will not be able to sell more than the bonus employee, so there’s nothing to strain.

Error No. 7. The absence of any adjustments in the motivation and incentive scheme.
The management of the enterprise from time to time to change the motivation scheme. Only in this case, the business will be able to grow. Otherwise, the incentive scheme will not work properly.

Mistake number 8. Incorrectly formulated incentive indicators.
If employee incentive indicators are not clearly defined and there is no objectivity, then in this case it is also very difficult to achieve success. In this case, everything is left to the management and its subjective assessment of the situation. But business can suffer from this.

We hope that these tips will help you not to make mistakes when stimulating the staff of the enterprise with the help of bonus payments.

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