Money or Title? When to Give Out Promotion Incentives

Monetary incentives are definitely welcome among rank and file employees belonging in the lower income bracket, since these are tax-free giveaways from the company in exchange for an above-par performance. But what can management do when the top performing client is uninspired and is not after monetary incentives, since the amount he or she earns is more than enough? The answer to that is a promotion incentive.

A promotion incentive is the program inside a company that guarantees qualified employees of a chance at career development and improvement inside the company via a structured climb up the proverbial corporate ladder. Promotion incentives are given to qualified employees because of a new position opening or vacancy in a higher position.

A promotion incentive is one of the much sought-after types of incentives in the corporate world because it not only means better salary figures, longer nights at the office and taller piles of unfinished work, but also that the qualification, effort and competitiveness of an individual is also recognized as an important and useful tool in the achievement of the business goals.

Incentives come in different forms inside a company - money-based and promotion-based. It takes a sound and solid in-house character assessment team to notice when it is suitable to dangle money in exchange for an improved performance and when it is time that the deserving tenured employee gets a new workstation along with a new title and improved compensation. However, in this case, compensation is just a matter of formality and propriety.

This is because some people put more importance on the role - the presence of a clear, validated and institutionalized role - an individual plays in a company or group. This role is given to an employee through the designing and implementation of a promotion incentive system.