Can incentive plans really boost employee engagement?

Faith Ocampo Published on April 24, 2017

problematic female call center agent sitting by laptop looking at red opened gift box

To keep productivity levels high, many call centers implement a performance-based incentive system, allowing them to identify and reward their top agents. Can this technique really boost employee engagement?

Rewarding high-performing employees with extra cash or a higher pay is one of the most common engagement tactics that companies employ. It’s especially common among customer service firms, which are known for staggering cases of employee burnout and turnovers.


When you look at it closely, however, an incentive-driven performance management approach can create the opposite effect. Here’s why.

1. Performance appraisals are flawed.

coworkers reviewing studying printed contract

Traditional performance evaluation, especially the annual or semi-annual ones, are usually reliant upon managers’ memories and perceptions about their employees. This makes the entire system flawed. It places managers in an uncomfortable position, and call center agents may act defensive when they get ratings that seem unfair or inaccurate.

It’s better to rely on actual data extracted from the key performance indicators and customer support metrics you track. But even then, you can’t use them as the sole basis for evaluating employees, especially if most of them are quantitative. To make up for this gap, you must also consider your agents’ attitudes at work and other qualities that numbers can’t encapsulate.

2. Money isn’t a motivator.

Money is an important factor that professionals consider when they look for a job. Indeed, the smaller employees’ salaries are, the more concerned they’ll be about money matters. But doubling their pay doesn’t always ensure that they’ll be more productive or satisfied. Rewarding call center agents with higher pay can create a temporary behavior change, but in most cases, it doesn’t create a lasting positive impact on performance.

A more sustainable employee engagement strategy would be to focus on people’s emotions. Create an environment that values employees’ unique expertise and contributions, and make them feel that they belong in your organization. Furthermore, make them feel that you trust them by challenging them and investing on their growth.

3. Not getting a reward is a form of punishment.

disgruntled office employee opening emplty gift box

When you adopt an incentive-driven performance management approach, you single out employees who are deserving of a reward based on their track record. But those who don’t get recognized may feel like they’re being punished. They may even feel alienated from the rest of the team, which does nothing to boost their morale and happiness in the workplace.

4. Incentive systems may ruin employee relationships.

Rewarding individual employees based on their performance appraisal results breeds competition. You create a culture wherein call center agents must outshine one another. As a result, your people would be more concerned about individual improvement instead of team-based efforts, a mindset that could spell disaster for customer service firms. Agents may consider their own teammates a barrier to their own success. And when this happens, what you have is an underperforming, difficult-to-manage team.

5. Rewards discourage risk-taking.

woman relaxing in office feet up surrounded by large gifts

You want to have a team that dares to take risks, try new strategies, and create new ideas, because that’s how innovation happens. But when you reward employees for adhering to certain behaviors, you’re reinforcing the idea that failure isn’t an option. Without a safety net, therefore, employees may choose to stick to tried-and-tested processes instead of experimenting with new ways of thinking and doing things.

It’s thus better to incentivize employees not just for achieving certain goals but also for how effectively they executed a task. Doing so will encourage them to pay more attention to their work processes, which almost always ensures great outcomes.

Faith is a digital media enthusiast aiming to become an active part of the tech world by sharing her insights. She likes to blog about everything digimarketing, technology, and social media.
Join us on facebook
Open Access BPO 3 days ago
Delivering outstanding #CustomerSupport on over #SocialMedia promptly is essential for enhancing #CustomerSatisfaction and improving the overall brand experience.

But how can your brand consistently deliver on this crucial front?

Improve your customer interactions and build stronger connections on social media by reading all about it on our blog: https://buff.ly/sdjJ2A3

——————————
Give your brand a CX boost on the social web!
Outsource to a #CustomerService expert today: https://buff.ly/aBetHaO

#WeSpeakYourLanguage
#CustomerService #CSat
#CustomerExperience #CX
Open Access BPO 13 days ago
The world is getting smaller, and your customers come from all corners of it!
Partnering with a culturally diverse #CallCenter team isn't just the right thing to do, it's a smart business move.

Learn about the key benefits in our blog:
https://buff.ly/360SqHP

----------
Want a high-value #CustomerExperience for your diverse audience?

Let our multicultural teams help your brand break into international markets without worries.

Contact us today: https://buff.ly/59i7YD6

#WeSpeakYourLanguage
#CX #diversity #inclusion
Open Access BPO 13 days ago
Open Access BPO is kicking off our Pride Week, a dedicated series of events celebrating #PrideMonth. This initiative underscores our commitment to fostering a workplace culture built on #inclusion and #diversity.

Throughout the week, we've planned a series of meaningful activities designed to celebrate the #LGBTQIA+ community. We believe that fostering an environment where every individual feels valued and empowered is crucial for our collective success.

Our dedication to creating a safe and equitable space extends beyond this week, reflecting our ongoing commitment to a more inclusive future for all.

#WeSpeakYourLanguage
#PrideMonth #Pride2025 #UnitedByLove
#OneWithDiversity #PrideMonth2025
Open Access BPO 13 days ago
Open Access BPO is kicking off our Pride Week, a dedicated series of events celebrating #PrideMonth. This initiative underscores our commitment to fostering a workplace culture built on #inclusion and #diversity.

Throughout the week, we've planned a series of meaningful activities designed to celebrate the #LGBTQIA+ community. We believe that fostering an environment where every individual feels valued and empowered is crucial for our collective success.

Our dedication to creating a safe and equitable space extends beyond this week, reflecting our ongoing commitment to a more inclusive future for all.

#WeSpeakYourLanguage
#PrideMonth #Pride2025 #UnitedByLove
#OneWithDiversity #PrideMonth2025
Open Access BPO 14 days ago
Open Access BPO conducted Plant It Forward, a two-part tree-planting initiative, held in Laguna and Davao in May and June 2025.

Volunteers from both activities planted 300 Philippine indigenous trees, which were selected to help maintain the biodiversity in the area.

“This program is more than just planting trees; it’s about cultivating a culture of social responsibility within our organization and demonstrating our commitment to the communities where we operate,” said Joy Sebastian, Global VP at Open Access BPO.

This is only the start. Open Access BPO vows to continue investing in such environmental projects, affirming its core value of creating positive impact.

Read more about the green initiative here: https://buff.ly/HjTlHZC

#WeSpeakYourLanguage
#OABPOPlantItForward
#OABPOcares #IdeaHubOABPO
Open Access BPO 14 days ago
𝐀𝐝𝐝𝐢𝐧𝐠 𝐯𝐚𝐥𝐮𝐞 𝐭𝐨 #𝐂𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐄𝐱𝐩𝐞𝐫𝐢𝐞𝐧𝐜𝐞 𝐦𝐞𝐚𝐧𝐬 𝐠𝐨𝐢𝐧𝐠 𝐭𝐡𝐞 𝐞𝐱𝐭𝐫𝐚 𝐦𝐢𝐥𝐞 𝐟𝐨𝐫 𝐲𝐨𝐮𝐫 𝐜𝐮𝐬𝐭𝐨𝐦𝐞𝐫𝐬.
This means transforming basic interactions into meaningful connections.

It's the secret to building strong customer loyalty and driving business success by making customers feel valued and understood.

Dive deeper into what makes a truly value-added #CX and how it can significantly boost #CustomerLoyalty and overall business success: https://buff.ly/8Wxb9gw

——————————
Ready to transform your customer experience? Don't settle for less; elevate your #CX by partnering with a #CallCenter that truly goes the extra mile 24/7.

Learn how our dedicated team can enhance your customer interactions and drive loyalty.
Take the first step towards superior CX today: https://buff.ly/L6dUG5E

#WeSpeakYourLanguage
#CustomerSupport #BPO