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Effective Reward Systems Increasing Performance and Creating Happier Employees |
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By: Vadim Kotelnikov, Founder, Ten3 Business e-Coach – Inspiration and Innovation Unlimited, 1000ventures.com, 1000advices.com
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"You get more of the behavior you reward. You don't get what you hope for, ask for, wish for or beg for. You get what you reward." – Michael le Boeuf |
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9 Signs of a Losing Organization
5 Characteristics of a Winning Team Rewards: The greatest team management principle is that the things that get rewarded get done. You get what you reward. Rewards include doing the things people enjoy doing, recognition, and money. By rewarding collective achievements you inspire and promote teamwork... More Inspirational Leadership: 10 Roles
Why Reward Systems? The only way employees will fulfill your dream is to share in the dream. Reward systems are the mechanisms that make this happen. "However, reward systems are much more than just bonus plans and stock options. While they often include both of these incentives, they can also include awards and other recognition, promotions, reassignment, non-monetary bonuses (e.g., vacations), or a simple thank-you."5 "The journey is the reward," says Steve Jobs. You Get What You Reward The greatest management principle is that the things that get rewarded get done. "You get more of the behavior you reward. You don't get what you hope for, wish for or beg for. You get what you reward."7 When your employees do hit the target and meet a stretch standard you set for them, reward them immediately. Never stall. By doing this, you help employees directly connect the reward with behavior and higher performance they've attained.4 "Fail to reward the right behavior and you will most likely get the wrong results."3 Case in Point Canon The six guidelines of the Canon Production System (CPS) are:
Five Ss at Canon All work are expected to continuously find ways to improve regardless of their performance. Results of evaluations are posted on bulletin boards to foster responsibility and pride. The best work areas are awarded recognition plaques... More Case in Point Intel At Intel, rewards are clearly linked to performance. About half of pay is tied to company and/or divisional performance, and more than 70% of employees have rights to purchase stock options. The way Intel management sums this up is, "The reward system reinforces the company's high expectations of its employees to grow, learn, and lead."1
Growth Risk: "The more you measure and motivate based on innovation, the less likely you will have a truly innovative culture." – Stephen Shapiro... More
Three Greatest Rewards of the Universe... Stimulating Entrepreneurial Environment... Linking Pay with Performance... Rewarding Idea Generation... Motivating the Person: Two Fundamental Stages... Two Guidelines for Rewarding Innovative Behavior... Incentive Motivation... Case in Point Wall-Mart... Case in Point Monsanto... Case in Point Dell Computer Corporation... Case in Point GE... Case in Point The Silicon Valley's Approach to Gain Sharing...
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