1. Running a Successful Incentive Program
Employee Performance Programs That Work
Asking the right questions is key to getting results.
The role of Human Resources within a corporation has been significantly repositioned in
recent years. At one time, it was seen primarily as an enforcer of policies. Now, it is
considered among top-performing organizations to be a key partner in driving and
supporting critical business objectives.
Leadership Role
That’s why, when new HR incentive programs are brought to the attention of corporate
management, it’s necessary to spend time establishing the correct objectives, especially
those linked to broader organizational goals. This will ensure that HR continues to play
its leadership role in the organization.
Before establishing your HR Incentive Program, it’s important to consider these eight key
questions:
1. What are the objectives of the HR program?
2.How are these objectives connected to broader corporate goals?
3. Are the objectives observable and measurable?
4. Are your evaluation criteria for success in the program based on these objectives?
5. Do the criteria indicate improvement between expected and actual performance when
measured against your objectives?
6. Have you selected the correct incentives and learning programs to influence the
employee behaviors required to meet the program objectives?
7. What data sources are already available to help measure results? (Productivity
reports etc.)
8. Are there alternative methods for gathering data? (Interviews, on-site observations)
By ensuring that you have clarity on the answers to the above questions before launching
a new HR program initiative, you will be well on your way to ensuring that program’s
success.

2. Running a Successful Incentive Program
Employee Recognition Rewards Raise Morale
Raise Employee Morale. Reduce Turnover Costs.
A total reward approach can attract and engage employees.
Today’s best companies offer total rewards packages that go far beyond just
compensation and benefits to attract, retain and engage employees. An excellent total
rewards package will lead to positive changes in workforce behavior, reinforce overall
business strategy, and ensure organizational success for the future. Organizations need to
consider the following when designing an effective Reward program: Compensation,
Benefits, Work-Life Balance, Performance and Recognition, and finally Development
and Career Opportunities.
As the labor market shifts and we all begin to compete for the same resources, the well
informed employee will come to expect Total Reward programs that combine these
elements and that bring value to the employee (value as defined by the employee).
Immediate recognition awards like fuel savings cards can play a significant role in
Performance and Recognition elements of a total rewards program. As these rewards
generally come from immediate supervisors as a result of specific performance or
behavior, they are viewed by the employee as being highly personal and potentially more
engaging than a future pay day deposit "from the company."
The market has shifted and it is no longer sufficient to drive only compensation and
benefit program efficiencies and cost controls — HR must manage the "value exchange"
through recognizing that engaged employees create value for their organizations in return
for tangible and intangible rewards.

3. Running a Successful Incentive Program
How to Measure Your Success
Follow these steps to track your incentive program’s performance:
1. Establish your objectives
It’s important to determine what you hope to accomplish before your promotion even
begins so that you have a basis for measurement. Decide whether you want to increase
quantities or sales, for example, and consider the best marketing solution—be it an
incentive, direct mail, or mass media—to effectively promote your initiative.
2. Make use of metrics
Metrics are the measure of objectives that let you know how your program performs.
Effective metrics cover all aspects of the program from response rates, purchases and
click-thru to time spent on a site and return on investment. Keep in mind that effective
measurement should go beyond evaluating the output of an incentive program, which
accounts for things like number of media impressions, and should expand to examine
program outcome, like a change in behavior, opinion or other consumer engagement.
3. Track your program with effective tools
Of course, your incentive program has to follow the objectives and strategies outlined in
the pre-planning stages. As a general rule of thumb, if you change your plan, you have to
change your metrics. Furthermore, once the program is in market, metrics should be
tracked on an ongoing basis. Remember to submit your email at incentives@petro-
canada.ca to receive our integrated Excel tool for help with tracking costs and measuring
program results.
4. See how you measure up
When it comes to measuring your results, we recommend diagnostic elements where
possible and suggest looking at the program from an objective, unbiased perspective. Not
only will this help you determine an incentive program’s success, it will also uncover
why it worked or didn’t work.
5. Interpret your results
Once the incentive program is complete, take a look at the results to see if you achieved
your goal. Ask yourself if the program would work if tweaked slightly or if it was not
effective at all. Unfortunately, there is always a chance that you won’t successfully meet
your initial goal. But without measurement, you will never know the extent of your
accomplishments or the opportunities that exist for improvement in the future.

4. Keep your incentive program in tip-top shape
Keeping Your Employees Motivated during Challenging Times
Motivation is a major challenge for Human Resources professionals. In the context of
mergers, acquisitions and downsizing, keeping your people performing at their peak can
mean the difference between achieving your goals and missing the mark.
The right incentive program can reward your employees and keep them motivated.
Best Practices for Employee Incentive Programs
We’ve done the research and put together some quick hints for an effective incentive
program.
*Employees want to redeem their rewards quickly, conveniently, and economically.
*Choice is an important consideration, making gift cards the most popular incentives.
*Give incentives that enable employees to recall their accomplishments every time
they use the reward, combining emotional impact with relevancy.
*Programs designed to influence employee behavior need endorsement from senior
staff, typically supported through internal marketing communications.
*Management needs to also convey endorsement of the program goals, and how these
goals will be measured, and achievement rewarded.
*Internal communication programs — newsletters, posters, websites, and emails —
should convey incentive program goals and objectives, and staff achievement creatively.
*Encourage managers to talk about the programs during weekly meetings, one-on-
ones, or around the water cooler. Over time staff will embrace and endorse the program.