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 13 hours ago
Embrace the power of #diversity and drive positive change with #InclusiveHiring practices!

Our new blog post explores the transformative impact of inclusive hiring, providing insights and strategies to build a stronger, more inclusive workforce: https://buff.ly/3uHQV7c

----------
Our recruitment & training practices are meticulously designed to ensure exceptional #CX: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#DiversityandInclusion
#inclusivity
Open Access BPO 16 hours ago
When it comes to #CustomerService, every ounce of effort—both tiny and grand—counts.

Here's a list of 10 modest gestures your #CallCenter agents can do to build meaningful customer relationships: https://buff.ly/3Rc0wdZ

----------
Elevate #CustomerExperience by #outsourcing to a trusted 24/7 multilingual #BPO: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#outsourcing #CX #CSat
#CustomerSatisfaction
Open Access BPO Yesterday
Ensuring memorable #CustomerExperience by providing high quality #CustomerSupport means two things:
• brands need to gain a 360-degree view of their customers; and
• brands need to satisfy a large part, if not all, of their customers' needs.

Do both by implementing a multichannel #CX management strategy: https://buff.ly/418ASeP

----------
Give your customers an unforgettable customer experience with multichannel #CustomerService: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#outsourcing #CX
#CustomerSatisfaction #CSat
Open Access BPO 11 days ago
Aside from the location advantage, the 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬 𝐭𝐡𝐞 𝐦𝐨𝐬𝐭 𝐥𝐮𝐜𝐫𝐚𝐭𝐢𝐯𝐞 𝐝𝐞𝐬𝐭𝐢𝐧𝐚𝐭𝐢𝐨𝐧 𝐟𝐨𝐫 𝐦𝐮𝐥𝐭𝐢𝐥𝐢𝐧𝐠𝐮𝐚𝐥 𝐜𝐚𝐥𝐥 𝐜𝐞𝐧𝐭𝐞𝐫 𝐬𝐞𝐫𝐯𝐢𝐜𝐞𝐬 in Southeast Asia because of these Filipino qualities:
• neutral accent;
• multilingual proficiency;
• dedicated work ethics;
• resilience and adaptability; and
• close affinity with Western cultures.

Read: https://buff.ly/47sGAKD

----------
Partner with a #CallCenter with strong #CustomerExperience expertise: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerSupport #CustomerService
#CustomerSatisfaction #CSat #CX
Open Access BPO 11 days ago
𝗙𝗼𝗿𝗲𝗰𝗮𝘀𝘁𝗶𝗻𝗴 𝗮𝗰𝗰𝘂𝗿𝗮𝗰𝘆 is a valuable metric to determine the challenges your #CustomerSupport team will face.
It allows you to manage your team and distribute the workload accordingly, paving the way for an efficient operational output.

Read: https://buff.ly/3R0VCk2

----------
Effective employee and ops management ensure high #productivity for optimal 24/7 coverage.

So, only partner with an #outsourcing specialist with robust and foolproof ops strategies that will make your brand soar: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerExperience #CustomerService
Open Access BPO 12 days ago
Creating culturally diverse teams in #CallCenters is not just a moral imperative but a strategic advantage.

Here are 6 more compelling reasons for ensuring #CulturalDiversity in the workplace: https://buff.ly/3MYaCO6

----------
Choose an #outsourcing partner with diverse teams and cultures:
OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#diversity #inclusitivity
Open Access BPO