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Give Your Employees Effective Incentives Featured

Give Your Employees Effective Incentives Christina @ wocintechchat.com

Nonprofit organizations often face challenges related to resources and capital to spend compared to the for-profits. This affects how they offer compensation packages to their employees. However, most employees in nonprofits choose to work there because they believe in their cause, mission and philosophy. Regardless of their belief in the cause, any human appreciates incentives and recognition. Therefore, employers who create effective incentive programs are likely to find the best workers and fully engage them. The right incentive programs include tangible rewards for employees that show strong performance. While for-profits can offer their best-performing employees incentives such as cash bonuses, wage increases or expensive gifts, nonprofits cannot afford this due to a lack of budget. However, they can develop reward schemes that help boost the workforce's morale but do not affect the organization's financial standing. Here are some approaches you can take when doing this.

Paid Time Off Policies

Instead of offering higher salaries and incentives, most nonprofits have generous paid time off policies compared to for-profits. While for-profit employees might provide their new employees with two weeks of paid vacation during their first three to five years of working with them, some nonprofits give new employees more than three or more weeks of vacation during their first year and reward long-term employees with over five to six weeks of vacation time each year.

Career development

Career development is one of the biggest incentive schemes nonprofits use for their employees. This adds knowledge to employees and allows them to perform better in their roles within the nonprofit. Career development initiatives in nonprofits allow employees in charities to experience career development fast than the employees in the for-profit sector.


Some of the most well-known nonprofits in the world carry out global humanitarian works. A good example is the Red Cross, which works in different countries to alleviate different forms of human suffering across the world. For some employees, the opportunity to travel to different countries is fabulous and keeps them engaged in their work. Travel opportunities that some positions get in nonprofits are an effective incentive that can help your employees grow and stay in your organization longer.

Personal perks

Fringe benefits raise the quality of life of employees. They make things simple and enjoyable both on and off duty. Apart from good pay, many nonprofits give rewards like a shorter workweek, flexibility, and telecommuting and paid time off to their employees. Others offer child and elder care discounts. On the other hand, on-site food and laundry concierge services are offered to other employees to keep them motivated. Other nonprofits go as far as offering on-site carwashes and signature products like t-shirts and tote bags or coffee cups as employee rewards.

Financial perks

Apart from spending plans that allow employees to set aside their money for health expenses to separate it from health insurance benefits, most nonprofits offer financial management services to their staff. These services are not easy to come by in the corporate world. Some of the services include budget planning, tax preparation and others. There are other services, such as retirement plans with matching contributions offered by some nonprofits.  Other financial benefits include free life insurance, which is sometimes more than three times the employee's salary. Some nonprofits partner with retailers to give their staff discounts on some products such as groceries, computers, clothes or cellphones. The financial rewards are good for employees because they boost their performance.

Other incentives may be in the form of coaching, mentorships and memberships to professional organizations that allow the employees to grow economically, socially and mentally.

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Scott Koegler

Scott Koegler is Executive Editor for PMG360. He is a technology writer and editor with 20+ years experience delivering high value content to readers and publishers. 

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