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We have had a couple sales people with our company in the past few years. We often get incentive programs offered to them to push certain products by various material manufacturers. And we allow it.
Now we have a vendor that wants to do a substantial giveaway to not just the owners, but they want to include all of our employees. As the owner, should I allow the employees to be able to accept the gift. And which employee do I give it to.
Is this a great way to motivate my employees or will it create more problems that it’s worth?
I thought bribery was illegal in the U.S. I know it happens everyday though and to some degree we all do it. It just comes down to which degree it starts to bother you as the owner and leader of the company. If you start pushing more of that material how will it effect your other materials and/or vendors?
All, the way I understand it is that marketing perks are limited to gifts and even those have a dollar amount limit, whereas giving cash is illegal.
I would rather have a nice vacation than the cash and they can also include a high food and beverage allowance. Andy you are a nice guy, thinking about all of your employees and sharing. They can call this what ever they want, incentives, rewards, etc just to get by doing it.
I don’t think it will cause too many problems to allow it from the standpoint of pushing that product more than other products lots of shops have their “favorites”, but I do think you may run into a problem with your employees. The problem is:
#1 – you either have to give it to all (but do all deserve it?) or choose, which can create internal problems unless you pick certain groups (installers, salesmen, management, etc….) of employees and even then you may run into problems.
#2 – if you give it to all of your employees you run into the problem that employees have a funny way of expecting things. Maybe you can think of a way they can earn it.
It is strange how something intended to pick up morale can have an opposite effect in the future. (What happens if they never get another “big” incentive? Will they be grateful for what they did get?) I don’t know, it sounds like a hornets nest to me. 🙂 Especially considering it is a much larger gift than they are used to getting.
I am all for sharing with your employees; I just think you have to be careful about it.
If they gave a cash prize to the owner, then the money could be either kept by the owner, or it could be divided up and given to the employees as a bonus.
Not sure this would give the desired impact that a large giveaway would get, but it would take out some of the unknowns.
Andy,
Got the solution that will save any problems with your employees and help you at the same time. Take the money and go on vacation but bring them each back a small gift from where ever you go. Well it works for me. What if you were able to keep it til christmas and add it to their bonus, at that time of year they will appreciate it more anyway.
I’m going to offer a different view of this. I don’t think you all have thought this through. To me there is no difference between a vendor incentive and the cash coming in from a customer. The employee should not know about either, or how much. If they do, you will set yourself up to greed and talk by the employee. If they get rewarded by a manufacturer, they will expect it often, and then if they ever think you got more from that company, they will feel cheated. If for some reason you start selling more jobs from another manufacturer, and they get nothing, they will think you are getting it and keeping it. Then, you ever go on a trip, they will think you got the trip free, and they got nothing.
I have been on both ends, employee, and now owner for 22yrs. I feel the only source for their extras should come from me, and I let them know it is because of their work I can do that.
I also never let a day go by, that when we leave for the day, I’ll tell them “thank you” and how I appreciate what they do.
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