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March 2003 - Pick And Choose Your Incentives

Offering incentives to employees has become an integral part of doing business. Incentives help to keep employees on the payroll, and they encourage a myriad of good work habits, including being on time, being productive, and being safe. The challenge with incentives, however, is there is only so much money to go around, which means employers today need to pick and choose their incentives carefully to ensure that they get the most mileage possible out of them.

Thornton Landscape, Inc., located in Maineville, Ohio, offers a number of incentives, most of which target seasonal employees. "Probably our most successful incentive is the one we award for perfect attendance," relates Andy Doesburg, CLP, company marketing director/account executive. "If employees do not miss a day of work and are on time every morning, they receive a $50 bonus in their paycheck at the end of the month. The first time they receive the bonus, you can see it in their faces, "Wow, how did Iearn this" Then, they realize it is as easy as coming to work every day, on time."

As Doesburg points out, $50 may not seem like a lot of money, but it is a great motivator, and it adds up when employees string together a few months of perfect attendance. Then, there is the employer's perspective. "We work in a very competitive market," relates Doesburg. "Anything we can do to enhance employee loyalty and increase our productivity will make us more competitive." Fifty dollars is a small price to pay for those dividends, he adds.

Other Incentives
The company's other incentives are also a small price to pay for loyal workers. Among them is a new-hire bonus. Employees who refer friends receive $50 if their friends stay with the company for one month. If those workers stay for two months, they receive an additional $100, and they get another $100 if the employees they referred stay for three months " not bad for simply getting together a friend and an employer.

The company offers noncash incentives, too. For example, it reimburses the cost of the test fees for anyone who earns a state certification or who becomes a Certified Landscape Technician (CLT). Although it has only one CLT currently on board, four other employees are in the process of taking their CLT exams. "There are other ways to encourage employees to become certified," notes Doesburg. "The important point is that becoming certified at the state and national levels helps to increase the skill and knowledge base of employees and gives a company a competitive advantage. Again, it is a matter of picking and choosing those incentives that work best for your company."

Sharing Success
One of the most effective incentive programs for any employer comes in the form of profit sharing. "If we are making money, we like to share it," says Doesburg. "When we have a good year, we give a year-end bonus. When times are good, there are plenty of big smiles around here, and they are not just coming from the management team." Christmas gifts in the form of Sony stereos and Lands End clothing and bags all serve to thank Thornton employees for a job well done.

"We understand that incentives, especially money incentives, are no guarantee that employees will be loyal and work hard for you every day," Doesburg emphasizes. "Not counting my father, Rick Doesburg, we have eight employees who have been with the company more than 20 years. I think being honest and treating employees right are the two best incentives for working that any company can offer. Beyond that, bonuses, money incentives, and reimbursements can be effective as long as they are used selectively. Incentives have their place, and they are most effective when they accomplish two goals " when they encourage or reinforce a specific action and when they highlight that action as being especially important to the company."

3/03
By Rod Dickens, ALCA Contributing Writer