An employee incentive program has become common as a human resource tool. As today’s workplace 
becomes more competitive, companies and organizations turn toward incentives above base salaries to attract talent, increase performance and maintain employee loyalties. A successful employee incentive program if implemented correctly will motivate employees and improve performance.
Before implementing any employee incentive program, it is crucial to clearly communicate the objectives and nature of the program to staff. Employees must understand how performance will be measured and what is required to take advantage of the incentives offered. Having employees know why an incentive program is being implemented and how it fits into the overall strategic direction of the organization. Employees must also be assured that not participating in the incentive plan will have no negative impact on their current position.
Any employee incentive program must appear attainable to employees for it to be successful. Employees must perceive the incentive as something that adds value to their current lives and something that is within reach should they meet the level of performance set by the organization.   The purpose of the incentive program is to reward employees for their performance. If the incentive is perceived as something that is too difficult if not impossible to achieve, and something that adds little or no value to their lives, it can actually lower performance and the have a negative impact on motivation.
Increases in performance inspired by an employee incentive plan are not necessarily based on the amount or type of incentive. Because of this, organizations can reduce the overall costs associated with the implementation of an employee incentive plan by offering non-cash incentives such as the use of a company car or the personal use of a cell phone. Much of these costs are already borne by the organization and any associated costs incurred through the incentive program would cost less financially in the long run than strict monetary incentives.
Successful employee incentive plans should also be flexible, addressing individual and group performances while meeting the objectives desired by the organization. They should provide a mechanism for competitive individuals to over achieve if they so desire, while still allowing cooperative teams to excel as part of a larger group. There should also be mechanisms to accommodate individuals who elect not to participate in the program.
Regardless of the type of incentive program implemented by the organization, the program should remain fun and encourage people to have fun while participating. People should feel good about coming to work and feel good about the performance of the organization. Properly implemented incentive plans can improve the morale of an organization by making it a fun place to work.
An employee incentive program is a win-win for all parties involved. The organization is rewarded with increased productivity, highly motivated employees and an increased employee loyalty.  Employees are rewarded with the incentives they receive over and above their regular salary and the feeling brought by being a part of a successful organization.
