What will the incentive system change? What are the effects and what precautions should be taken?

by | Sep 9, 2021 | Evaluation , Motivation  | 0 comments

Many companies have introduced incentive programs to motivate their employees.

However, when introducing an incentive system as an internal system, it is necessary to carefully consider what kind of content should be included in the system, and there are some points that should be noted.

In this article, we will discuss the benefits that can be gained by introducing an incentive system, as well as the types of incentive systems and cautions that should be checked when introducing an incentive system.

How Incentive Systems Work

What is an incentive?
Incentive is a term that refers to “triggers that motivate employees. In general, most incentives are rewards given to employees or teams for their achievements. Sometimes they are given as bonuses, sometimes they are given as awards in front of the entire workforce, and sometimes they are given as extra prizes.

It is important that the content of the rewards be varied depending on the degree of achievement of goals and performance, and that they be given equally to employees and teams that meet the conditions.

Effects of adopting an incentive system

Incentive systems increase the motivation of employees and teams. In addition to increasing the motivation to achieve goals, the sense of accomplishment that comes from working together as a team can also help to increase team cohesion.

It is also an effective system for strengthening the company’s overall organizational strength and increasing engagement because it creates healthy competition.

Types of incentive schemes

Monetary incentivesMonetary incentives refers to a system that provides additional compensation in addition to the regular bonus.

For example, a reward for achievement or a bonus given to the top performer. The rewards are not only cash, but also travel, goods, and more.

They are not only given in cash, but also in the form of travel and goods. Another feature of these rewards is that they can be differentiated, such as by offering lavish incentives to employees who achieve higher levels of contribution.

Evaluation incentives

Evaluation incentives refers to a system that awards or promotes employees who have achieved their goals or performed well. Although they do not provide specific rewards such as money or material goods, they have the advantage of satisfying employees’ need for approval.

Incentive systems can be either monetary or evaluation-based, or a combination of both.

Points to keep in mind when introducing an incentive system

There are several points to keep in mind when introducing an incentive system. Here are some points to keep in mind when introducing an incentive system.

If you follow these points, you can expect a higher level of effectiveness.

Designing a system that can maintain the cooperation of the organization

When introducing an incentive system, it is necessary to establish and disseminate evaluation criteria so as not to fixate on short-term goal achievement. This is to avoid the purpose of working on the business from becoming only “receiving incentives.

In addition, since competition among individuals may intensify, it is also important to communicate that “incentives will be generated equally if conditions are met.

Since healthy competitiveness leads to interaction that draws high motivation from each other, it needs to be well controlled.

In order to balance cooperation within the organization and a healthy competitive environment in an incentive system, the introduction of a convenient goal management tool is recommended.

Goalous, you can share your goals with the Open Goals feature, and check and rate each other’s progress with Photo Actions.

You can exchange messages one-on-one or in groups, which will help your team achieve their goals. This will also help reduce the workload of managers, as evaluations will be easier to perform.

Improve employee engagement

Improving employee engagement is also important when introducing an incentive system. The better the mutual understanding between the company and the employees, the smoother it will be for the system to take root in the company.

In addition, it is important to create an environment where each member can act independently in order to strengthen organizational strength and increase employee engagement.

By introducing specific internal measures and effective incentive systems, employees will naturally become more willing to take action.

Goalous Colorkrew, the company that developed and operates also offers webinars that can be helpful in improving employee engagement.

If you are considering introducing an incentive system but are worried about whether it will be effective, please feel free to attend the seminar.

To register for the seminar, please visit here.
What is the single best way to improve organizational engagement?


Unlike a simple commission system, an incentive system allows a company to set its own criteria for compensation. However, if the purpose of introducing the system is not clearly defined, there is a possibility that receiving the reward will become the objective, and the employee will be satisfied once they receive it.

In order to effectively draw out motivation, it is necessary to create a system that sustains motivation, such as by setting criteria for granting rewards. Please refer to the contents of this article and the seminar to introduce an effective incentive system that suits your company.