Performance Management and Reward Practices Performance Management and Reward Practices Today organizations are showing a high degree of commitment towards reinforcement of reward practices which are aligned with other HR practices and the goals of the organization for attracting, retaining and motivating employees. Efficient reward practices helps in attracting result driven professionals who can thrive and succeed in performance based environments. Hence, it is a crucial motivator and may contribute towards the enhancement of the productivity of the employees if implemented properly. An effective reward system should be linked with the performance development system, which focuses on performance based pay and offers ample learning opportunities along with a healthy work environment.
Research shows that money does not constitute a strong, ongoing reward in and of itself. It is like having a nice office; it can give a temporary boost in morale and energy. The key roles for money and nice offices are that they can stop people from feeling worse.
Times have changed dramatically. Workers can no longer be treated like machines. They come at a high price and can cost as much to replace.
Workers expect to be valued as human beings. Today, the rewarding of workers is done as a partnership between the supervisors and their workers. They do not need to be, and do not expect to be, rewarded for every useful thing they do in the workplace. One of the most important outcomes from regularly rewarding workers is that they believe that their supervisors fully acknowledge their value to the workplace.
It should be able to saw wood all the time.
It should not ever have to be sharpened! For example, rewards can be in the form of money, benefits, time off from work, acknowledgement for work well done, affiliation with other workers or a sense of accomplishment from finishing a major task.
Rewards should support behaviors directly aligned with accomplishing strategic goals. This principle may seem so obvious as to sound trite. Rewards should be tied to passion and purpose, not to pressure and fear.
Fear is a powerful motivator, but only for a short time and then it dissipates. For example, if you have initially motivated employees by warning them of a major shortage of funds unless they do a better job, then they will likely be very motivated to work even harder.
If, instead, management motivates by reminding workers of their passion for the mission, the motivation will be much more sustainable. Workers should be able to clearly associate the reward to their accomplishments. One of the purposes of a reward is to reinforce the positive behaviors that earned the reward in the first place.
If employees understand what behaviors they are being rewarded for, they are more likely to repeat those behaviors. Rewards should occur shortly after the behaviors they are intended to reinforce.
Importance of Sense of Purpose and Feeling Appreciated Finding and training new employees is a substantial cost, no matter the size of the organization. One of the best ways to retain employees is to reward them for their work. One of the primary rewards for working adults is to feel a sense of meaning or purpose in their work.
If employees feel that they are serving a useful purpose, they are much more likely to stay at their current job. A common complaint from employees in small- to medium-sized organizations is that they feel burned out. A common symptom of burnout is to feel unappreciated.
One of the best ways to address burnout, and retain employees, is to ensure that they feel appreciated for their work.
Thus, it is critical that organizations give careful consideration as to how they reward their employees. Organizations do not need huge sums of money in order to reward them besides, the belief that money is the major reward is just a myth.
Guidelines in this section will help you to think about what might be the best rewards for your employees and to take steps to ensure that you are providing those rewards.
Guidelines to Rewarding Employees There is not a set of standard rewards to be used for employees everywhere. The following guidelines will help you to determine what might be the best ways to reward your employees.
Occasionally have a Board member come to an employee meeting to thank them. Understand what motivates each of your employees. A major benefit of this approach is that each employee is afforded the opportunity to explain what motivates him or her. In each monthly staff meeting, take a few minutes to open the meeting by mentioning major accomplishments of various employees.
Present gift certificates to employees who have made major accomplishments.A winning system should recognize and reward two types of employee activity-performance and behavior. Reward schemes for employees and management A major part of performance management involves managing employees and managers, as their performance will have a major effect on the performance of reward system is uncompetitive.
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Employee Reward and Recognition Systems Employee Recognition In a competitive business climate, more business owners are looking at improvements in quality while reducing costs.
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