Traditionally, human resource departments would handle the administrative operational functions of a business. In response to the changing demands of businesses and employees, however, HR now has a more strategic role in shaping the workforce of a company, managing conflict, encouraging high performance, job satisfaction and boosting retention.
All of these activities have financial implications and impact an organisation's ability to achieve its goals. For this reason, HR managers need accurate data and quantifiable means of measuring the success of their activities. If you're considering investing in an incentive scheme, for example, stakeholders will be keen to see a return on investment (ROI). Incentivesmart can help you demonstrate how your employee recognition and rewards scheme is helping you to smash your KPIs.
The power of engaged employees
Engagement is high on the list of priorities for modern businesses. According to research, 71% of employees would describe themselves as disengaged. A multitude of issues could prompt an employee's lack of interest in their day to day tasks. Perhaps they don't feel listened to by top-level management. Maybe their working environment is unsuitable for the task they are required to carry out. Insufficient training may be causing a lack of confidence in what they contribute to the business.
Incentivesmart will investigate the root cause of your company's engagement issues and devise a proprietary points-based reward system that allows managers and colleagues to show appreciation for hard work, give encouragement in challenging situations and improve communication and connectivity between all stakeholders in the business.
Our programme's recognition and rewards are targeted at performance and behaviour. When employees are earning rewards for demonstrating the required actions, this is a positive indicator for engagement – an important KPI. It’s important to discern between rewards and benefits at this point: employees will use benefits regardless of their personal performance level – think health benefits, company discount cards, etc. This means that benefit usage isn’t an accurate gauge for how your engagement strategy is working. Rewards, on the other hand, have to be earned – you know that when employees are claiming rewards, they’ve reached the targets you set for them.
The Incentivesmart platform allows you to take a consistent approach to managing your human resources by serving as an effective communication channel for company updates. It can also be used as an educational tool to help team members learn and improve their output by acquiring new skills.
All of these actions will boost engagement which will be reflected in your sales and profits.
As an HR manager, there are several crucial KPIs that you undoubtedly have to report on:
Absenteeism Rate: This figure will illustrate the loss your business incurs through a decline in productivity as a result of sickness or ad hoc leave.
Average Tenure: How long an individual remains in your employment is an indicator of job satisfaction and your company's ability to retain staff.
Attrition Rate: Helps you determine your organisation's ability to retain talent.
All of these figures can be impacted by an incentive scheme that focuses on building engagement. When workers feel motivated, acknowledged and appreciated, results show decreased instances of absenteeism and more extended periods of happy employment with the company. In organisations where engagement has consistently been a strategic HR priority, staff turnover is 40% lower.
Your organisation’s culture will significantly affect your ability to acquire top talent and keep these individuals with the business long term. Building a positive and healthy corporate culture is one of the goals for an incentive scheme.
You may be wondering how culture can be quantified, but there are obvious red herrings that can signify issues in this area for business. Your net promoter score, for example, will show how likely employees are to recommend their company as an excellent place to work.
Your Incentivesmart platform will also enable you to receive suggestions from employees about how business processes can be improved or impart any ideas about how their work experience could be enhanced. Taking the initiative to communicate and voice opinions in this way shows engagement.
The employee satisfaction index is another key metric that is acquired through running a company-wide survey that will show decision-makers how happy staff feel in your organization’s current climate.
Having these insights allows you to make important decisions about how to improve your company's culture based on the feedback and key metrics obtained from your rewards platform.
Productivity can be a sore point for many businesses. Usually, this issue arises through lack of engagement; in other scenarios, it could also be the case that your employees are under-equipped to produce the work you require at scale. Whatever is causing a lag in your staff's ability to increase the volume of your output, an incentive scheme will help you to pinpoint the challenges and come up with practical solutions.
If engagement is the issue, you can take measures to motivate staff through recognition and rewards that encourage a sense of achievement and instil a feeling of appreciation. Your profitability could be boosted by as much as 21% when your workforce is engaged.
Reporting dashboards for KPIs
With the Incentivesmart platform, you'll have access to a centralised dashboard that provides data on metrics such as pages viewed, how and by whom the platform is being used and how involved they are with the programme – giving insight into their overall engagement with the organisation.
Our approach to incentivisation is built on years of study and research into human behaviour. We work closely with our clients to create engaged and productive workforces that make a genuine impact in their industries.
The advanced points banking platform will help you to get long term results that you can easily report on. This information will empower you to make adjustments and tweaks to your HR management approach as you learn more about how your employees feel and what motivates them to stay loyal to your organisation.
To learn more about how Incentivesmart can help you to report on KPIs, simply get in touch with us to book a free demo.