An incentive scheme program is a scheme established in companies to reward and motivate their employees. Incentives also apply as an arrangement to attract new customers and maintain the existing ones. There are various types of incentives, and different companies normally adopt the programs that suitably correlate with their operations. A company will as well adopt a program in accordance with their intended effect. Different programs are for different purposes and for different audiences. There are incentive programs for customers, and the intended outcome is the increase in sales volume. Incentive programs for employees are internal and target at increasing the overall performance of the workers. This incentive feature has led to many scientists and analysts referring to them as pay for performance.
According to research, incentive programs motivate employees to increase productivity and loyalty to the firm. Employees’ incentives may take many forms, such as cash incentives or gift incentives. Travel rewards may also be part of an incentive program of a company, merchandise rewards such as electronics or furniture, or even non-monetary rewards such as flexible work hours and training may as well be part of an employee’s incentive scheme plan of a company. Experimental rewards though expensive, have proved to be remarkable incentives. These kinds of rewards provide the participants with incredible experiences such as a seaplane flight. The type of incentive payment plan used by a company should match the needs of its employees.
McDonald’s is the world’s best-known fast-food chain and has over 34,000 restaurants. Dedicated employees at McDonald’s have contributed to the success of the McDonald’s franchise. The management of these excellent restaurants successfully rewards their employees for keeping them motivated. McDonald’s management offers many benefits to their employees, and the incentives come as part of the package of the benefits package. Employees at these restaurants have the advantage of receiving many forms of rewards. The rewards and payments at McDonald’s adopt the theory of paying for performance, which establishes that opportunity of payments, are greater when one’s results are of high standards. This feature boosts the working morale of the employees who seek to produce high standard results to increase their pay opportunities. The skills and performance of workers at McDonald’s determine the individual’s base pay, and thus the better the performance, the higher the fixed base pay of the character.
Other than the base pay, the fixed cash compensation one gets for their work at McDonald’s, other portions of rewards exist for commendable performance, but these are not fixed and may vary. These are enticement and can be of an agreed deadline or can be permanent. The short-term incentives are the variable cash compensation that one may earn annually. Analysis of individuals takes place annually, and the performance of each individual is compared to the business strategies. Outstanding performances can never go unrewarded. Long-term incentives at McDonald’s include the LTI stock awards. Eligible workers receive the LTI stocks as rewards which target establishing a bond between the McDonald’s business and the individuals who have the potential to influence long-term business results.
As part of the recognition program, strong corporate, division, and region offices receive national rewards such as the president’s award. Normally only the top 1% of individual performers worldwide have the advantage of receiving it. In addition to this award, is the circle of excellence award normally given to top teams globally to recognize their contributions towards advancing the goals? At McDonald’s, Qualified workers at times are giving vehicles for business or individual use, which purely acts as an incentive. High ranking workers the company may avail a variety of cars to choose the one they like most. Furthermore, the employer does not have to incur extra costs taking care of the care as the company meets all the car costs, such as repairs, maintenance, and insurance cover.
Employees receive the medical cover and do not have to worry about medical expenses. They are also given life insurance alongside other medical benefits. Associates of the company may as well have flexible spending accounts; employees may as well receive dismemberment insurances, travel accident insurances, and accidental death insurances. The crew’s insurance programs are affordable and available to all active employees.
In the benefits package are vacation and holiday packages as well. McDonald’s offer holidays and vacations to corporate, regional, and division office employees and are fully paid. Junior restaurant employees also have the opportunities to go on these vacations. The duration of these vacations depends on the duration the employee has worked at McDonald’s, and the longer the period, the longer the vacation.
McDonald’s management takes care of the employees to increase their productivity and efficiency. The benefits package is quite motivating and caters to the needs of the workers. The insurance program ensures the workers are healthy, especially since they handle foodstuffs. This reduces absenteeism due to illness. The annual compensation short-term incentive stimulates the workers’ performance since the cash-rewarding scheme varies depending on the performance. Another incentive is the transport privileges where the company offers a company car to high-ranking employees. This eliminates lateness and increases the mobility of the workers. Vacations and holidays provide the employees with opportunities to get away from work and have a chance to leisure. This change of scene helps the workers to rejuvenate and be more active as soon they get back to work after the vacation. McDonald’s is among the most successful businesses globally, and therefore it is a good example of the advantages of a relevant and fair benefits package to employees.