SPECIAL REPORT - PROMOTIONS & INCENTIVES: All present and correct

As Christmas approaches, thoughts turn to bonuses - but staff incentive schemes should be ongoing rather than restricted to being a seasonal affair. For many people, extra money at this time of year is always useful and therefore a perfectly adequate incentive. While this is true up to a point, psychologists have argued that when it comes to rewarding people, money is a short-term motivator: it comes and goes, usually on bills. To make an impact, a carefully planned bonus or incentive scheme can do wonders when it comes to creating a warm glow in the hearts and minds of customers and staff, because people remember the "trophy" value of rewards far more than extra money in their pay packets. Since Christmas tends to be a personal holiday, personalised gifts are more effective at raising employee morale. If part of the intent is to motivate, then recognition in front of an employee's peers is even more important.