Employee Incentive Programs: Proven Winners

Successful strategies for making employee incentive programs work for you and your staff.
In DAYSPA’s July issue, experts shared the plusses and pitfalls of employee incentive programs (“Is it Wise to Incentivize?”). Here, two top spa owners divulge highly successful programs, along with some invaluable tips for those who are considering this route.

Incentive: “Drew Patrick Cash”

Drew Allt is founder and president of Drew Patrick, a wellness center in Bay Shore, New York. “Our most effective incentive is our monthly Education Service Card (ESC) program,” says Allt. “This is an ongoing effort and might be considered more of an employee benefit; however, rather than being simply guaranteed, ESCs are also used to encourage staff to follow basic policies and procedures.”

ESCs are earned simply by following the rules. When/if an employee violates the rules—arrives to work late, parks in the wrong area, uses a cell phone at inappropriate times—that employee loses ESCs. Each month, each employee’s accumulated ESCs are converted into “Drew Patrick Cash”, which can be spent on spa services for themselves.

This program incentivizes desired employee behavior, but also allows employees to experience spa services firsthand from a customer perspective. And that can provide a long-term payoff in improved customer service.

Incentive: “Good Guys Finish First”

Spa Gregorie’s—with two locations in Southern California—has a Good Guys program that’s all about encouraging the charitable efforts of spa employees. During the year, every time an employee volunteers for some sort of charitable work, his or her name is added to a hopper. The more often employees volunteer, the more frequently their names are entered, increasing their chances of winning. At year’s end, the winner of the Good Guys program is chosen by a random drawing during the employees’ annual Christmas party.

The reward? A round trip for two for anywhere in the world—the winner chooses the destination! Not surprisingly, this incentive program is wildly popular among employees. Although it doesn’t directly impact spa performance metrics, it certainly works to boost employee morale, a benefit that can indirectly pay off in countless ways.

But here’s the kicker: the program doesn’t cost Spa Gregorie’s a single cent. “We pay almost all business expenses through credit card accounts,” explains owner Angela Cortright. “Nearly all of those accounts award points that can be used to pay for trips. And we easily accumulate enough points during the year to pay for a trip for two to any destination in the world.”

The Good Guys program is a clear winner. “We’ve been doing this program for 18 years, and our employees absolutely love it!” reports Cortright.

Incentive Program Quick Tips:

Spa owners Angela Cortright and Drew Allt offer these guidelines for designing an employee incentive program.

Make it Understandable. Programs shouldn’t be overly complicated or difficult to comprehend. “Make certain that people are crystal-clear in terms of what you’re expecting from them,” says Cortright. Misunderstanding a program’s terms can lead to employees feeling that they’ve been cheated.

Make it Measurable. Goals to be achieved should be easy to measure, not ill-defined or vague. Avoid programs that rely upon judgment calls to determine winners, which can lead to feelings of favoritism.

Make it Doable. Asking employees to accomplish goals without giving them the means to do so is begging for trouble. The larger the goal and the bigger the incentive, the more important it is to give employees the tools and education to succeed. “Don’t just say, ‘we want you to double sales,’” notes Cortright. “Teach them how to accomplish the goal, even with step-by-step, specific instructions.”

Make it Finite. In most cases, programs that seem to drag on forever are less successful. Employees can lose interest and motivation if the payoff seems an eternity away.

Make it a Full-Staff Effort. Incentive programs should invite the participation of an entire staff or department. It isn’t a good idea to create a program for just a few selected employees.

Make it Individual. Programs should focus upon individual goals. Programs that rely upon segmenting the staff into competing groups can be tricky to implement, and may lead to some team members feeling they’ve contributed more than others.