Can incentive plans really boost employee engagement?

Faith Ocampo Published on April 24, 2017

problematic female call center agent sitting by laptop looking at red opened gift box

To keep productivity levels high, many call centers implement a performance-based incentive system, allowing them to identify and reward their top agents. Can this technique really boost employee engagement?

Rewarding high-performing employees with extra cash or a higher pay is one of the most common engagement tactics that companies employ. It’s especially common among customer service firms, which are known for staggering cases of employee burnout and turnovers.


When you look at it closely, however, an incentive-driven performance management approach can create the opposite effect. Here’s why.

1. Performance appraisals are flawed.

coworkers reviewing studying printed contract

Traditional performance evaluation, especially the annual or semi-annual ones, are usually reliant upon managers’ memories and perceptions about their employees. This makes the entire system flawed. It places managers in an uncomfortable position, and call center agents may act defensive when they get ratings that seem unfair or inaccurate.

It’s better to rely on actual data extracted from the key performance indicators and customer support metrics you track. But even then, you can’t use them as the sole basis for evaluating employees, especially if most of them are quantitative. To make up for this gap, you must also consider your agents’ attitudes at work and other qualities that numbers can’t encapsulate.

2. Money isn’t a motivator.

Money is an important factor that professionals consider when they look for a job. Indeed, the smaller employees’ salaries are, the more concerned they’ll be about money matters. But doubling their pay doesn’t always ensure that they’ll be more productive or satisfied. Rewarding call center agents with higher pay can create a temporary behavior change, but in most cases, it doesn’t create a lasting positive impact on performance.

A more sustainable employee engagement strategy would be to focus on people’s emotions. Create an environment that values employees’ unique expertise and contributions, and make them feel that they belong in your organization. Furthermore, make them feel that you trust them by challenging them and investing on their growth.

3. Not getting a reward is a form of punishment.

disgruntled office employee opening emplty gift box

When you adopt an incentive-driven performance management approach, you single out employees who are deserving of a reward based on their track record. But those who don’t get recognized may feel like they’re being punished. They may even feel alienated from the rest of the team, which does nothing to boost their morale and happiness in the workplace.

4. Incentive systems may ruin employee relationships.

Rewarding individual employees based on their performance appraisal results breeds competition. You create a culture wherein call center agents must outshine one another. As a result, your people would be more concerned about individual improvement instead of team-based efforts, a mindset that could spell disaster for customer service firms. Agents may consider their own teammates a barrier to their own success. And when this happens, what you have is an underperforming, difficult-to-manage team.

5. Rewards discourage risk-taking.

woman relaxing in office feet up surrounded by large gifts

You want to have a team that dares to take risks, try new strategies, and create new ideas, because that’s how innovation happens. But when you reward employees for adhering to certain behaviors, you’re reinforcing the idea that failure isn’t an option. Without a safety net, therefore, employees may choose to stick to tried-and-tested processes instead of experimenting with new ways of thinking and doing things.

It’s thus better to incentivize employees not just for achieving certain goals but also for how effectively they executed a task. Doing so will encourage them to pay more attention to their work processes, which almost always ensures great outcomes.

Join us on facebook
Open Access BPO 3 days ago
#Fintech #CX must scale without losing the human touch.

As Q1 2026 draws to a close, fintech brands are facing a key challenge: 𝗗𝗲𝗹𝗶𝘃𝗲𝗿 𝗵𝗶𝗴𝗵𝗹𝘆 𝗽𝗲𝗿𝘀𝗼𝗻𝗮𝗹𝗶𝘇𝗲𝗱 𝘀𝘂𝗽𝗽𝗼𝗿𝘁 𝘄𝗵𝗶𝗹𝗲 𝘀𝗰𝗮𝗹𝗶𝗻𝗴 𝗳𝗮𝘀𝘁 𝗮𝗰𝗿𝗼𝘀𝘀 𝗺𝗮𝗿𝗸𝗲𝘁𝘀.

The brands that succeed are combining AI tools with multilingual CX teams and flexible support operations.
The result is faster responses, stronger trust, and #CustomerExperiences that still feel personal even at scale.

See how fintech brands can build scalable personalized CX in 2026: https://buff.ly/g7ioIHh

──────────────────────────────
Our multilingual teams and flexible #outsourcing solutions help fintech companies deliver personalized #CustomerSupport while managing rapid growth.

Connect with us to explore how outsourced CX can support your fintech expansion: https://buff.ly/aMNxt9U

#WeAreOABPO
#CustomerSupport #CSat
#OutsourcingCustomerService #CX
#CallCenterOutsourcing
Open Access BPO 3 days ago
Open Access BPO has always recognized all the women who drive our success. For years, we've advocated for policies and initiatives that ensure #GenderEquality.

This year, Open Access BPO joins #GiveToGain in celebrating and supporting women's leadership and impact. We celebrate and thank all the women at Open Access BPO and across communities for everything you do to lead, inspire, and make a difference.

#WeAreOABPO #IWD2026
#OABPOonIWD2026 #SheSays
#SheSays #WeCanBeEquALL
Open Access BPO 6 days ago
#OABPOmilestone:
𝗖𝗲𝗹𝗲𝗯𝗿𝗮𝘁𝗶𝗻𝗴 𝟮 𝗱𝗲𝗰𝗮𝗱𝗲𝘀 𝗼𝗳 𝗴𝗿𝗼𝘄𝘁𝗵 𝗮𝗻𝗱 𝗽𝗲𝗼𝗽𝗹𝗲-𝗱𝗿𝗶𝘃𝗲𝗻 𝘀𝘂𝗰𝗰𝗲𝘀𝘀
Read the full story here: https://buff.ly/dBxlcfx

Multinational #CallCenter Open Access BPO marked its 20th anniversary with a kickoff celebration series across its Makati, Davao, and Taipei offices. The festivities honored the company's employees and set an inspiring tone for 2026.

This milestone shows what's possible when a company puts people first and builds a culture where teams can thrive together.

──────────────────────────────
Our people-first culture powers performance and innovation, producing measurable results that matter.

Partner with Open Access BPO to scale your operations with a team that delivers excellence.

Contact us today to explore outsourcing solutions: https://buff.ly/PWlXVf8

#WeAreOABPO #TeamOABPO
#OABPOKickoff2026 #RedCarpetDreams
#Everglow #20YearsAndGrowing #CompanyCulture
#CXLeadership #BuildingTogether
Open Access BPO 13 days ago
𝗔𝗜 𝗶𝘀𝗻'𝘁 𝗮 𝘀𝘁𝗮𝗳𝗳 𝗿𝗲𝗽𝗹𝗮𝗰𝗲𝗺𝗲𝗻, 𝗶𝘁'𝘀 𝗮 𝗽𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲 𝗺𝘂𝗹𝘁𝗶𝗽𝗹𝗶𝗲𝗿.

The conversation around AI often focuses on full automation, but the real advantage lies in 𝐈𝐧𝐭𝐞𝐥𝐥𝐢𝐠𝐞𝐧𝐭 𝐀𝐮𝐠𝐦𝐞𝐧𝐭𝐚𝐭𝐢𝐨𝐧.
By pairing AI-driven speed with human empathy, brands can handle complex problem-solving and emotional de-escalation at a scale never before possible.

Discover the framework for blending human talent with AI to deliver premium #CustomerExperience without losing the personal touch.

Get the insights here: https://buff.ly/UFrYxcZ

──────────────────────────────
Elevate your brand with a partner that masters the balance of tech and touch.
Let's grow together: https://buff.ly/jtkk2WZ

#WeAreOABPO
#CX #CustomerSupport #OutsourcingCX
#Outsourcing #CustomerService
#CustomerSatisfaction #CSat #AI
Open Access BPO 16 days ago
Is shrinkage quietly draining your #CallCenter's productivity?

Whether due to absenteeism or internal meetings, your #CustomerExperience suffers when your agents are on the clock but unavailable to assist customers.

But you can minimize these gaps without burning out your team.
Read our full guide to boosting #productivity: https://buff.ly/WJXFVl4

──────────────────────────────
At Open Access BPO, we use tried-and-tested processes to target shrinkage and elevate #CX.

Let's talk about how we can help your brand thrive: https://buff.ly/8jBboiX

#WeAreOABPO
#CallCenterManagement
#WorkforceManagement #BPO #Productivity