It’s a famous story about rewarding employees:
“In a growing nail factory, leaders wanted to improve the performance of their workers. When the factory started to pay workers based on the total weight of nails produced, all the nails became bigger. When they then started paying workers for the number of nails produced, all the nails became too small.”
Many of us have first-hand experience with incentive schemes sending companies off a tangent, or even backfiring on their people’s productivity. It’s no surprise because most managers use rewards incorrectly.
Having an effective reward program in place can help solve many of your HR issues. As mentioned in an article from Entrepreneur: Every company needs a strategic reward system for employees that address these four areas: compensation, benefits, recognition and appreciation. The problem with reward systems in many businesses today is twofold: They’re missing one or more of these elements (usually recognition and/or appreciation), and the elements that are addressed aren’t properly aligned with the company’s other corporate strategies.
When organizations adopt agile software development, not only developers but project managers need to learn new practices. Development managers and team leaders must also learn a different approach, including rewards. Management 3.0: Leading Agile Developers, Developing Agile Leaders written by Jurgen Appelo is a half-theoretical, half-practical book recommended by Forbes.
They provide the 6 rules for Rewards:
Credits: Happy Melly
The question many have is how do employees show their managers their performance when managers are not always there to review the successful moments? How can we make sure the personal employees’ goals are aligned with the company’s goals and move towards the vision of your company? The below video can give some insight into that.
Dr Tim Erwin said in a Forbes Interview;
‘Never turn down a breath mint. Feedback is a gift.”
He thinks performance accountability is among the most important parts of a leader’s role. Yet many leaders are simply inept at providing feedback and coaching that helps more than hurts.
He is an organizational psychologist and executive coach and believes there’s a better way. His research shows the right kind of positive affirmation has a profound effect on a person’s brain and its effects promote a sense of personal well-being which leads to better performance. Criticism, he says, produces the opposite effect.
Dr. Irwin has invested a career in advising, studying, and learning from thousands of leaders around the world. He’s consulted for a wide range of U.S. companies including SunTrust Banks, Chick-fil-A, IBM, Gerber, Coca-Cola and Ritz Carlton. He details a fresh approach to feedback in his new book Extraordinary Influence: How Great Leaders Bring Out the Best in Others.
With Exaserv’s global SuccessFactors expertise, we tailored a solution focused on the needs of every business to align the best Perform and Reward solution. This way it becomes easy and accessible to improve the performance of your employees, people, and entire business. You can automate your people processes, improve visibility and efficiency, and transform your business strategy into Perfection every day.
Align your employees’ performance with your company’s goals. Focus your people on what matters, measure progress along the way, and keep everyone engaged and accountable. Below are key components that make up Perform & Reward.
Perform and Reward Includes
- Company information: Gain the visibility you need by creating a live organizational chart with reporting lines and team structures.
- Employee profiles: Provides access to live resumes that include skills, background information, and certifications.
- Goal & Performance management: Align employee efforts with your company strategy by creating goals and have a performance review process to keep the organization focused.
- Incentive alignment: Links annual compensation changes to behaviours/performance, so employees are rewarded for doing the right things. It includes full workflow and audit-proof with tools to eliminate bias.