Reasons to do an incentive in a down economy

 

Reasons to do an incentive in a down economy- Layoffs, salary freezes, reduced budgets, etc, etc, etc……

All these things are legitimate reasons to postpone or eliminate incentives, right? WRONG!
In tough times and when people are cutting back on all non essential employees it makes the employees you have that much more valuable. Showing your top team members that you are committed to growing your company as time and the economy allows should be on the top of every executives mind. When replacing a good employee can cost as much as 2.5 times their annual salary, just to get back to square one, and before you see any growth from that employee, spending the necessary amount to properly incent that person is not only a sound investment, but it is a necessity.

And what about your clients, or better than that, your potential clients? As companies tighten their belts and reduce staff, many times customer service suffers. Whether it is from lack of time, or a lack of moral due to things going on in the economy and the world today, employees are more likely to let the little things fall through the cracks. Maybe it happens with an existing client you have had for years, or perhaps it is just not following up on the new account that you have been chasing for awhile. A motivated and incented employee will help you gain the competitive edge you need to win your clients trust and business.

In a down economy, you must either maintain the proper incentives, or be prepared to lose employees and customers to your competitors who are doing so.

 
     
 

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