7 Fabulous Benefits of Point-Based Incentive

By Benefit One USA, Inc. Mar 22, 2018

7 Fabulous Benefits of Point-Based Incentive
Unlike the traditional way of incentivizing and rewarding the employees with cash or gifts, these days Points are used. In the present digital era, “Cash is the King” just seems to be a cliché. Though it is still the king in many fields but when it comes to incentivizing the employees, it is no more as effective as it used to be.

We have read about the benefits of Channel Incentives, Sales Incentives and Promotional Incentives for every organization. In this article, we have covered the benefits of using Point based system for incentivizing the employees over the cash incentives. One of the big reasons because of which every company is going cashless is the ease to track and manage the performance of every employee. Even the employees like it to get incentives in the form of points so that they can collect them all and make a purchase of their own.

Let’s take a look at the ways Point-based Incentives are proving to be the winner when it comes to choosing between cash and non-cash incentives:

  • More influential
    Imagine an employee wanting to buy something and he gets a chance to buy it from the points the company is rewarding to achievers. This will make him so happy and he will always remember how he earned it and this makes the incentive and rewards in the form of points more effective. If the stellar employees get paid in cash then, 99 % are chances that he will buy something which is of his urgent need and this makes cash rewards less effective.
  • Allows employees to exchange commodities with points
    Points allow the employees to exchange them with commodities which are required by the employees. This always creates excitement among the employees and also motivates them to work more hard to collect more points for purchasing the desired commodities.
  • No favoritism
    The best part of point-based rewards and incentives is that it is designed and is managed by the software. So, there are no chances of any favoritism and it works absolutely fair for every employee. Thus, it brings equality among the employees and brings out the fair winner.
  • Easy performance tracking
    A company can always set short-term goals and reward the winner with some points. These short-term goals are a good way to track the performance of employees.
  • Easy maintenance
    Point based system is managed and maintained by the software deployed in the company. This makes the senior HR member free of tracking of budgets, gift cards etc. This all is managed by just a few clicks. A point-based system is very easy and quick to implement.
  • Continuous rewards for every accomplishment
    When points are the rewards for the employees, it becomes easy for the companies to reward them for their every achievement. Unlike, cash rewards which is not possible to present on every achievement of the employees because of the budget restrictions.
  • Motivated employees
    Collecting more points to exchange them with commodities works as a great motivating factor for the employees. It is human nature to feel more excited and work more dedicatedly when they get an opportunity to buy something they have been longing for. So, this is an effective way to keep the employees motivated.

A point-based rewarding system has many benefits when compared to the cash-based rewards. A company can easily assign points to every employee in the office as well as to the channel incentives. This will encourage every person to work dedicatedly for the company without substantially increasing the cost of sales.

In this competitive time, it is important to stay ahead of the time and go for the technology to give that edge to the company sales. Benefit One USA has designed a software to take care of the rewards and incentives of the employees. This can be easily implemented in the company and can be customized as per the needs of the company.