Applying Employee Incentive Programs in the Security Industry
Chris Shumaker, TEAM Software by WorkWave, CALSAGA Network Partner
Although United States employers added 206,000 jobs to the economy, the unemployment rate rose to 4.1%, reported the Bureau of Labor Statistics in June 2024. These facts coupled with the low labor force participation rate shows that the job market is still tight for employers and more in favor of job seekers who are more likely to switch jobs to achieve better benefits.
While the tight job market has impacted employers in various industries, security contractors could be particularly vulnerable to high turnover rates and have trouble attracting qualified guards, which makes retention and hiring efforts top-of-funnel priorities for industry professionals.
However, security companies that focus on incentive programs that aid in recruitment and retention efforts may be in a better position to offset some of the challenges impacting their competitors, who will mostly also be seeking and trying to retain qualified guards.
Actionable opportunities to improve retention
To help offset these high turnover rates, employers can invest in incentive programs by recognizing the efforts made by staffers and rewarding their valuable contributions. A robust benefits program helps to acknowledge the efforts employees bring to the workplace while letting companies demonstrate their commitment to well-being and growth.
Examples of incentive programs and benefits can involve monetary incentives, such as bonuses, cash rewards, profit-sharing and referral bonuses. Performance incentives can include investing in career development, flexible working hours or conditions. Other non-monetary incentives consist of additional vacation days and travel incentives, in addition to career development stipends or skills development courses.
Although some of these opportunities may be difficult to implement due to monetary constraints, earned wage access, also referred to as on-demand or flexible pay, is a proven incentive for retaining employees because it gives workers access to part of their paychecks in advance of their payday, so long as those hours have already been worked and logged.
Why incentive programs work
Creating a company culture rooted in appreciation and employee motivation can improve retention rates while making companies more appealing to talented workers. Well-designed company incentive programs can boost job satisfaction, performance, commitment, engagement and trust in management.
Companies with high levels of employee engagement reported profits that were 23% higher than companies with low levels of employee engagement, according to a Gallup study. Aligning an incentive program that meets the needs and expectations of employees can create a more ideal work environment, where employees are encouraged to excel.
By strengthening employee commitment to organizational goals, workers can feel more engaged in their work while fostering trusting relationships amongst leaders who recognize and value employee contributions.
Measuring the effectiveness of incentive programs
The common challenge with initiating incentive programs involves finding a way to measure its success. Even though HR professionals use exit interviews for feedback to help evaluate their effectiveness, it can be difficult to measure the impact of an incentive program.
One of the most straightforward methods involves opening the channels of communication. Encouraging employees to communicate more with their managers and team leaders ensures that everyone can productively voice their concerns.
This can open the door to routinely scheduled coaching sessions where supervisors can give feedback while identifying areas for improvement and providing support for employees who want to improve. Setting aside time for employee coaching also provides greater clarity of responsibilities, as employees will then better understand their responsibilities and priorities.
If your organization is struggling with declining employee retention rates, creating an incentive plan is worth the effort. Not only do these programs help improve overall employee performance and retention, but they also help your business stand out as an employer of choice.
Chris has been supporting customers for the bulk of his entire career. He joined TEAM Software by WorkWave in January 2023, and since then he has built connections with customers by understanding their needs, educating them on the software and promoting value through customer experience.