Section 2. Providing Incentives for Staff and Volunteers

• Why should you develop a plan for providing incentives?

• When should you provide incentives?

• Examples of incentives

• How do you design and implement an incentive plan?

• Sustaining the incentive program

Why do people choose to contribute their time and effort to an organization? Motivation can come from many sources: meaningful work, fair compensation, connection with others, opportunities to learn, recognition, flexibility, a sense of purpose, and the belief that one's contributions matter.

Different people value different things, and those priorities can also change over time. A staff member may value flexible scheduling because of caregiving responsibilities. A volunteer may value learning a new skill or meeting other people who care about the same issue. Another person may appreciate public recognition, while someone else may prefer a private thank-you.

Compensation and incentives can influence people's choices, but they are only part of what makes an organization a place where people want to contribute and stay. Working conditions, relationships, respect, fairness, workload, autonomy, inclusion, professional growth, and alignment with the organization's mission can all affect motivation and retention.

The people who work with your organization, whether as paid staff or volunteers, contribute time, knowledge, skills, and energy to its mission. An effective recognition and incentive plan can help acknowledge those contributions and support retention, morale, learning, and engagement.

This section focuses on developing a fair, transparent, and flexible approach to incentives and recognition. Rather than assuming that one reward will motivate everyone, involve staff and volunteers in identifying what forms of recognition, support, and opportunity they actually value.

Why should you develop a plan for providing incentives?

How can a plan for providing incentives help staff, volunteers, and your organization as a whole?

• Recognition can strengthen morale and belonging. A sincere "thank you," specific acknowledgment of someone's contribution, or another form of recognition can reinforce that people's work is noticed and valued. Recognition is most meaningful when it is genuine, specific, timely, and appropriate to the individual's preferences.
• A supportive organization is better positioned to retain valued staff and volunteers and attract new ones. Incentives can contribute to retention, but they work best alongside fair compensation where applicable, respectful relationships, manageable expectations, meaningful participation, opportunities to grow, and working conditions that support people's well-being.
• Recognition and incentives can reinforce organizational priorities. When an organization clearly recognizes collaboration, learning, safety, quality, innovation, service, or other valued contributions, it communicates what matters. Incentives should not encourage people to sacrifice well-being, fairness, safety, or teamwork simply to reach a target.
• A clear incentive plan can reduce real or perceived favoritism. Establishing transparent criteria can make recognition more consistent and equitable. At the same time, fairness does not always require giving everyone exactly the same reward; people may value different forms of recognition, so offer choices where possible while applying the underlying criteria consistently.

When should you provide incentives?

If you decide to provide incentives or formal recognition for staff and volunteers, when should you do so? The answer will depend on your organization, but two general principles can help:

• Recognize contributions at meaningful and clearly understood milestones. Your organization might recognize years of service, completion of an important project, achievement of a challenging goal, completion of training or certification, successful collaboration, or another significant contribution. Whenever possible, establish the general criteria in advance so that people understand how recognition decisions are made.

For example, a local symphony might celebrate the end of a concert season, receiving an important award, or reaching a major fundraising milestone. A children's rights advocacy organization might recognize people who contributed to the passage of important legislation or staff members and volunteers who completed a major annual report. Both organizations might also recognize people who have contributed over many years.

• Recognize contributions regularly and promptly. Recognition is often most meaningful when it occurs reasonably close to the accomplishment. Don't wait months after a major milestone to acknowledge the people who made it possible. Timely appreciation can reinforce connection between the contribution and the recognition while the accomplishment is still fresh.

Examples of incentives

What makes a good incentive? The answer depends on the people involved. Some people value financial rewards, while others value flexibility, learning opportunities, additional responsibility, time, public recognition, or a simple private expression of appreciation.

Before choosing incentives, ask staff and volunteers what they value. Also consider fairness, accessibility, organizational resources, tax or employment implications where relevant, and whether an incentive could unintentionally disadvantage people because of disability, caregiving responsibilities, health, scheduling constraints, or other circumstances.

Primarily material incentives

Pay and financial recognition

• Fair and competitive compensation for paid staff
• Promotions accompanied by appropriate increases in compensation and responsibility
• Raises
• Performance-based pay when criteria are transparent, equitable, and appropriate to the work
• Bonuses for significant accomplishments, added responsibilities, or exceptional contributions
• Additional compensation connected to clearly defined responsibilities or results
• Profit sharing, gain sharing, or other appropriate shared financial benefits where applicable
• Gift cards, stipends, or other modest tangible forms of recognition
• Team-based awards or recognition tied to meaningful accomplishments

Avoid relying heavily on incentives tied to factors such as perfect attendance when those measures may disadvantage people because of illness, disability, caregiving responsibilities, transportation barriers, or other circumstances outside their control.

Benefits and supports

• Benefits packages that may include paid leave, health coverage, retirement contributions, or other supports where resources allow
• Opportunities for qualified volunteers to apply for paid positions when openings are available
• Additional paid time off or flexible leave options
• Workplace supports such as meals, refreshments, transportation assistance, parking or transit benefits, wellness resources, or equipment that makes work easier
• Flexible or expanded leave policies where feasible
• Tuition assistance, training, certification, conference support, or other professional-development opportunities
• Flexible scheduling or remote-work options where the work allows, which can support people with caregiving responsibilities, school schedules, disabilities, second jobs, transportation needs, or other commitments
• Paid release time for professional development, community service, mentoring, civic participation, or other activities consistent with organizational policy

Less material or nonmaterial incentives

• Appreciation and praise - offer sincere, specific acknowledgment in the form the person prefers, such as a conversation, note, email, team recognition, or other expression of appreciation
• Recognition programs, such as staff or volunteer recognition awards, nominations for community awards, or other forms of acknowledgment
• Awards and tokens of appreciation, such as certificates, plaques, pins, organization-branded items, books, or other meaningful gifts
• Celebrations, such as appreciation meals, potlucks, picnics, receptions, or other gatherings
• Training and professional development - opportunities to develop skills, earn certifications, attend conferences, or learn new areas of work
• Public recognition, when the person wants it, such as highlighting their contribution in an organizational newsletter, website, meeting, or community publication
• Staff and volunteer retreats or learning gatherings - opportunities to reflect on the work, build relationships, learn together, and plan for the future
• Optional social activities - informal meals, recreational activities, celebrations, or other gatherings can strengthen relationships when they are welcoming and do not create pressure to participate outside work or volunteer hours
• Increased autonomy and trust - giving people appropriate discretion over how they carry out their responsibilities can demonstrate confidence in their judgment and skills
• Networking and mentorship opportunities - provide opportunities to meet others, develop professional relationships, receive mentoring, or participate in conferences and community networks
• Opportunities for leadership and decision-making - invite staff and volunteers to lead projects, participate in planning, contribute ideas, or take on responsibilities that support their goals and interests

How do you design and implement an incentive plan?

There are many possible ways to recognize and support staff and volunteers. The goal is not simply to create more rewards, but to develop an approach that is meaningful, fair, transparent, sustainable, and appropriate to your organization.

• Decide if you need and want an incentive plan.
  • A formal plan may be helpful for larger organizations or organizations that need consistency across many staff members and volunteers. A small or informal neighborhood group may not need a formal system at all; personal appreciation and informal recognition may be more appropriate. You may also want to learn from comparable organizations about approaches that have worked well for them.
• Consult with staff and volunteers who may participate in or be affected by the plan.
  • The best way to learn what people value is to ask. People may differ greatly in whether they prefer financial recognition, flexible schedules, time off, professional development, private appreciation, public recognition, additional responsibility, or something else. Whenever possible, provide choices instead of assuming that everyone wants the same thing.

For example, leaders of a small environmental advocacy organization in the Northwest thought staff members would appreciate more public recognition, so they proposed an "employee of the month" program and local newspaper features. Staff and volunteers explained that public recognition was less valuable to them than greater scheduling flexibility. Because many had school-age children, flexible hours could better support their responsibilities outside work. They also suggested opportunities for paid staff to contribute some work time to other local nonprofit organizations, supporting both professional relationships and broader community engagement. The example illustrates why incentive plans should be shaped by the people they are intended to support.

If you have several possible incentives in mind, develop a list and ask staff members and volunteers what they value, what they would change, and whether any options might create barriers or inequities. You can also invite them to generate ideas before organizational leaders make final decisions.

• Write a draft of your incentive program, including:
  • Your goals: What do you want the plan to accomplish? Do you hope to improve volunteer retention, staff well-being, engagement, learning, collaboration, recognition, or effectiveness? Establishing goals makes it easier to determine later whether the plan is useful. You may want to decide on some baseline measures so you can understand changes over time.
  • The contributions, accomplishments, or practices you want to recognize - and how you will do so consistently and fairly. Make sure the incentive structure aligns with the organization's values and does not unintentionally reward unhealthy workloads, competition, exclusion, or other practices you are trying to avoid.
  • The right incentives. Establish criteria for incentives, such as affordability, fairness, accessibility, usefulness, sustainability, and alignment with organizational values. Get feedback from staff and volunteers before finalizing the plan, and keep the system understandable and manageable.
• Consult again with staff and volunteers.
  • After you have developed a draft, invite people who will be affected by the plan to review it. Ask whether the criteria seem fair, whether the incentives are meaningful, whether the plan is accessible, and whether there are unintended consequences you have not considered.
• Revise the plan as needed, incorporating feedback wherever possible.
• Implement the plan.
• Review the program after an appropriate period of time.
  • Review whether the program is meeting the goals you identified and whether staff and volunteers still view it as fair, useful, and meaningful. Depending on the organization, an initial review might occur after several months, followed by regular reassessment.
• Continue to revise the plan as needs, resources, and circumstances change.

Sustaining the incentive program

Even a well-designed incentive or recognition plan can lose relevance if it is not maintained. Build the process into organizational practice so that it does not depend entirely on one person and can adapt as staff, volunteers, resources, and priorities change.

Four things can help keep it going:

• Consistency and equity: Apply the same underlying criteria fairly across roles and levels of responsibility. At the same time, allow flexibility in how recognition is provided, because people may value different forms of appreciation. A staff member might prefer professional-development funding while another might value time off or private recognition. Clear criteria combined with reasonable choice can support both fairness and individual preference.
• Follow-through. If the organization promises recognition, professional development, time off, or another incentive, follow through. Repeated promises that are not honored can undermine trust.
• Involvement. Involve people from different roles in maintaining and reviewing the program. This reduces dependence on one individual and helps ensure that the plan continues to reflect what staff and volunteers actually value.
• Review. Periodically review the incentive program for relevance, fairness, accessibility, effectiveness, and sustainability. People's priorities may change, an incentive may no longer be useful, or new opportunities may become available.

For example, when a small theater company began, limited funding meant that most recognition had to cost little or nothing. Staff and volunteers received complimentary tickets, participated in an annual appreciation potluck, received handmade awards, and gathered for inexpensive social events. As the organization grew and gained additional resources, it expanded its appreciation efforts while keeping traditions that people still valued. The lesson is not that incentives always need to become more expensive; rather, organizations can adapt recognition as their resources and participants' preferences change while preserving the practices people find meaningful.

In Summary

A thoughtful incentive and recognition plan can help an organization acknowledge contributions, strengthen morale, support retention, and create opportunities for staff and volunteers to learn and grow. Incentives work best when they complement – rather than substitute for – fair treatment, appropriate compensation for paid work, meaningful participation, supportive working conditions, respect, and clear communication.

Ask people what they value, apply criteria transparently and equitably, provide choices where possible, and review the plan regularly. The goal is not simply to encourage particular behavior, but to show that the organization values the people whose work, knowledge, time, and commitment sustain its mission.