Employee Incentives vs. Awards
Tip of the Month by Ron Jasniowski
and rewards are similar but different. I'm not a strong advocate for
awards, because they tend to reward only top performers. This all too
often has a negative effect on valuable employees who don't get the
However I am a
strong advocate for incentives. That is compensating desired
performance. Many managers have seen employees with performance and
behavioral problems quickly turn around once there was an attractive
incentive to do so!
In order for
incentive programs to be effective, they must be setup properly. They
must be simple for employees to understand (which behaviors are
compensated) and they must be practical for managers to implement. There are many
different types of incentive programs. Some offer a selection of gifts
from a gift book, others simply offer monetary bonuses on a monthly basis. This tip will only describe the latter.
Rather than simply
giving employees nominal raises on an annual basis (which for the most
part were unmerited), I gave monthly monetary bonuses for meeting the
following desired objectives:
Start and finish
promptly each day: $60 max. per month
(doing new tasks alone correctly): $50 max. per month
not excessive: $35 max. per month
completed within normal time): $50 max. per month
responsibilities & carrying them out without reminders: $80 max. per
increase from year before: $10 per percent increase
The amounts of
course will vary for how important the task is to your organization. The
hardest part is figuring it all out and then presenting it to the
employees. But once it is done, the benefits are great and ongoing:
were weak in certain areas, turn around.
more money and it is tied directly to performance/profits.
as coworkers do their share of the work and everyone’s pay increases.
improves and profits increase!
Those of you who
aren't in a position to implement something like this may want to
forward this article to whoever is responsible for employee incentives.
Future issues will provide you with
more details on how you can reach the next level of leadership
may want to print this and discuss it at your next leadership team
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