Tweet

Reward and Recognition Pathways and Pitfalls

Guest post by: Jim Clemmer

Article Overview: Don't use money to try and shape behavior or boost performance. It rarely works. If you think it has in the past, what happened when you took the carrot away? No doubt, performance slipped and you were left with stimulus-dependent people looking for progressively bigger carrots. Unless people feel compensation and bonus systems are a major block, leave them alone.

Reward and Recognition Pathways and Pitfalls

"No one is apathetic except those in pursuit of someone else's objectives." - Henry Ford, early 20th century American automobile pioneer

• Don't use money to try and shape behavior or boost performance. It rarely works. If you think it has in the past, what happened when you took the carrot away? No doubt, performance slipped and you were left with stimulus-dependent people looking for progressively bigger carrots. Unless people feel compensation and bonus systems are a major block, leave them alone.
• When you do need to review or adjust your financial rewards, get the people you're compensating involved. They should give you feedback on your current approach and improvement ideas. Ideally, they would design and own the compensation system.
• Keep reward programs simple and direct. Everyone should easily understand them. They should also see a direct connection between what they or their team does to serve customers or partners and their compensation. That argues for shared or self-managed teams operating in a decentralized structure. We've found that simple three-tiered compensation systems work well: (1) personal, (2) team, division, or plant, and (3) corporate profit sharing. Base the rewards on an open-ended percentage of earnings, not performance to a budget or projections (that just invites game-playing at budget time).
• Whose needs are your recognition and reward systems designed to serve? What are the goals? Are they to manipulate, control, and "motivate?" Or do they build an atmosphere of helpfulness, appreciation, and high energy? How do you know? As with beauty, quality, or customer service, reward and recognition are in the eyes of the beholder. So get all your partners involved in designing meaningful reward and recognition systems and practices for each other. Involvement can happen through combinations of gap analysis, focus groups, teams that study and recommend, or teams that design and implement the reward system.
• Get clear about what is to be rewarded and recognized and by whom. Move management out of the role of deciding who gets rewarded and recognized for what behaviors. Work with your partners to blend customer/partner input with your team or organization's vision, values, purpose, strategic imperatives, and improvement goals. Set up systems, programs, training, and provide a personal leadership example that gets customers and partners involved in giving frequent recognition and appreciation to each other.
• Make sure there's a good balance between rewarding and recognizing both current performance and improvements. People who do well today but aren't improving won't help your team or organization get better. Anyone who's not continually improving will become a liability.
• Don't set up competitions for limited rewards - unless teamwork isn't important to you. Fear of failure and losing doesn't create energy. Find ways to meaningfully recognize and energize as many people as possible.
• Avoid suggestion systems. They reward people for lobbing ideas at others to implement. They work best in a paternalistic culture where they reinforce traditional management control rather than shared or self-management.
• Don't use promotions as a reward. People should only be put into larger leadership roles because they have demonstrated the capacity, vision, values, skills and so on for ever higher levels of leadership. Using promotions as rewards puts an unhealthy focus (and competition) on position, rank, and titles as a means of measuring worth. It also sets the promotee up for resentment and failure in his or her new position.
• Traditional performance appraisals are dangerous and detrimental to performance. They rarely work. That's why organizations are constantly changing them. Why are you doing them? If it's to manipulate and control behavior, you're paying a big performance price to indulge this fetish. If it's to develop people, replace appraisals with frequent performance discussions and coaching based on 360 degree feedback.
• Separate compensation and performance discussions. They serve two different (and often opposing) purposes. Over 85 percent of the factors affecting individual performance are in the system, process, or structure of the organization.
• Build jobs around people. Align good people with what they like to do and what needs doing. Helping people to grow, expand, and move to new challenges and opportunities are some of the best ways to show sincere recognition and genuine appreciation for their improvement efforts.
• Keep measurements, improvement progress, and recognition highly visible. Use scoreboards, bulletin boards, voice mail, electronic or printed announcements and the like.
• Recognize and reward both individuals and teams.

Related Articles
  Rewarding Your Employees - The Pros and The Cons
  Employee Recognition Programs
  Four Ways to Waste Your Employee Recognition Budget
  Zero Reward, Zero Recognition: Will That Be Your Dream Company?
  Exception is a Poor Rule
  What Are The Common Mistakes You Need To Avoid While Designing An Employee Rewards And Recognition Program?
  Maximizing Results with Reward and Recognition
  How To Make Effort Rewarding
  Comfort Zones
  DOs and DON’Ts of Great Recognition Programs
  Recognition and Rewards: Who’s Got the Time These Days, Not to Mention the $$$?
  Motivation
  How To Create an Employee Incentive Program
  The Laws of Execution - How to Systematically Get Things Done - Five Part Series - Part Four
  New Study of Corporate Rewards Program Proves...
  Why Rewards Cause Problems #3: Rewards Rupture Relationships
  Reward and Recognition Reinforce Paternalism or Partnerships
  How can I fast track my qualification?
  Recognition and Appreciation Inspires and Energizes
  Here Are Ways Which Are Making Average Managers Into Outstanding Ones

Article Tags: leadership
Referred by: http://www.searchengineworkshops.com



Related Forum Posts
Re: Finding AND Keeping Good People - Employee retention or as you mention “Keeping the Good People” is one of the biggest challenges for any growing business. It takes a huge effort from the entrepreneur’s end. I can come up with the following when it comes to KEEPing the good people- 1. Motivation of the employees 2. Recognition of the needs of the employees 3. Activities to make the employees feel valuable towards the organization 4. Make benefits more accessible 5. Offer profit sharing incentives 6. Create clear career paths at the company 7. Consider telecommuting, job sharing and other flexible working arrangements 8. Incentives are essential and they don't have to be huge 9. Have other managers praise an employee's work 10. Be sensitive to the balance between work and private life
Self Development Tips - I find this old article about self development and very liked it. I think here a lot practical rules! As long as you are still alive, you are capable of changing and growing. You can do anything you want to do, be anything you want to be. Listen to some positive thoughts on how to continue your self development and then apply them in your own life. 1. Accept personal responsibility for your own growth; no one can do it for you. What you do today will determine your readiness for tomorrow. 2. Take time every day to do something for yourself. 3. Take classes to stay current in your field of expertise. The world is changing rapidly and you must learn to manage change to avoid obsolescence. The way Will Rogers put this was that "Even if you are on the right track, if you just sit there you will get run over." 4. Listen to cassette tapes on personal and professional growth topics. 5. Never look back to the past - you only can control your actions in this instant, so what should you be doing right now? 6. Learn from "other people's experience" rather then having to try everything for yourself. It shortens the time needed to learn. 7. Dealing with a problem helps you learn patience and strengthens your management skills; it is good mental exercise. 8. Analyze, in a non-judgmental way, mistakes in which you were involved. It will help you to prevent these in the future. 9. Reward yourself when you catch yourself working on the most important priorities. 10. Never say something can't or won't be done. Keep looking for ways to do it. 11. After attending a seminar, report to your boss or other people in your organization, what the most important things are that you learned from the program. 12. Eliminate one time waster a week from your life. 13. Read a minimum of one chapter of a book a day. 14. Read a minimum of one book a month. 15. Be hungry for what life has to offer and go for it. 16. Decide what you really desire to do - then do it. 17. When you have the option of reading a book or listening to the cassette tape version of the program, listen to the tape. It will be more to the point and can be done while you are driving, jogging/walking, or getting other routine things done. 18. Develop a "master mind" group of four or five people with whom you can openly discuss ideas in a nonjudgmental way. 19. Develop yourself as a resource for others by networking. Find out who does what, when, and for whom. You may find excellent contacts for your future needs and for the needs of others you meet. 20. Work for balance in your life goals: family, financial, professional, social, spiritual, recreational. 21. Always keep your goals in mind as you start a new activity. 22. If you do a lot of work with the calculator, run the machine with the hand you don't use for writing. 23. Do not be afraid of failing at something. You can learn and change as a result of it. 24. The most difficult projects are opportunities for your biggest successes just as the most difficult people could become your strongest allies. 25. Put up pictures of your dreams and goals where you will see them frequently. They will remind you and aid you in focusing and visualizing your goal. 26. We all have the same 24 hours in a day. Learn from those people who get more done than you do. Perhaps you can find a way to improve what you are doing. 27. Find a nonjudgmental mentor who will help you by providing feedback, suggestions, challenges and support. 28. Identify some "models" and observe their style and actions. Do not copy them but learn from their experiences. 29. Learn from the errors you see others make as well as from their successes. 30. Fill your mind with positive ideas, thoughts and inspirations and you will have no room left for the negative. 31. Trade jobs with someone so you gain additional experience. 32. Ask for and accept lateral moves in the organization so you learn more about the entire operation. 33. Do more than your "self doubts" say you can. 34. Have confidence that you can get through and learn from anything and everything you experience. 35. Reward yourself with a treat when you have completed a learning objective. 36. Keep a daily journal, recording your thoughts, ideas, feelings and personal growth progress. 37. Ask questions, listen, then ask more questions. You will learn as well as help others learn. 38. Ask yourself, "How can I manipulate my fate?" 39. Do things with someone you respect. They will be supportive of you and you will learn from interacting with them. 40. Seek new information on projects for which you have responsibility. Look for new "ah ha" ideas all the time. 41. Challenge yourself to learn something new every day. 42. Remain flexible and constantly adaptable. 43. Be open to others and sincerely interested in them. You can learn from everyone you meet. 44. Mentally rehearse a new skill. Your subconscious does not know the difference between actual practice and mental rehearsal. 45. Keep a record of what you accomplished the previous day(s)/week. If you did not accomplish as much as you wanted, it gives you extra incentive to do better in the next time period. 46. Make notes of the questions you want answered. Then as the answers come to you, jot them down next to the question. 47. Work on overcoming personal, nonproductive habits; for example: overeating, smoking, gossip. 48. Keep an "Idea File" ring binder or notebook in which you record all new ideas. At least once a week in a standing appointment with yourself, review your ideas. Very interesting to know other practical self development tips.
eBlogging 101: Getting Your Internet Business To Stand Out F - Since the inception of eCommerce websites there have been a growing number of brick and mortar businesses expanding their sales online. With this growing trend it means more competition and less market share. I have mentioned that eBlogs are becoming more popular as well (an integration of an eCommerce shop with a blog) and I spoke more about it in the post I wrote: e-Commerce With Integrated Blog (e-Blogging). The question Internet businesses face is: how do you stand out from the crowd? Design and User Friendliness This is almost too obvious but I still see poorly designed websites lacking user friendliness and easy to use navigations. A well designed website is easy to use, looks professional and instils confidence in potential customers. This reassures them that they can safely buy on your website knowing their products or services will be delivered on time. Furthermore a professional website conveys high quality and strong branding, just how you would attend a business meeting in a proper suit and not a pair of Billabong shorts. Ease of use of your website is equally important. If a potential customer can not navigate through your website easily and find the information they are looking for, they will go to the next website on the list. It is very easy to lose a sale because of poorly designed navigations. One way to test the ease of use of your website is to watch friends and family while they complete a few simple task of purchasing and finding specific information. A few things to observe are: * Do they have to keep backtracking through the website? * Can they find what they are looking for quickly? * Can they easily click on images to enlarge the product? * Does the search function work and return the appropriate results? * Are the images of high quality without sacrificing time to load the website? * Is it easy to add items to the shopping cart? * Is the checkout easy to use? Additionally, ask them for their feedback and thank them for their time. Be sure to take these findings and implement them to your website. Once you get this right, you will have a higher conversion rate. Show Your Testimonials Testimonials is a powerful tool for any Internet business. In the past I’ve utilised this tool to promote and market my products for Dragonboating and it increased my sales by two fold simply by having them displayed. Prospective customers will also feel confident to purchase from you because they see positive feedback from others. With the right mix of testimonials including website’s easy of use, quality of product, speed of delivery and fast resolution of issues, it will cover all aspects of the buying process for a prospective customer. So next time when a customer receives their product, follow up with them 7 days later and ask them to write a testimonial for your website. Help Customers Find Your Delivery And Returns Information It’s important to show a link to your delivery and returns page which should be displayed prominently on your website. Most customers want to know whether or not you can deliver to their location, how much it will cost them and how you will handle returns if there is a problem. I have had customers tell me how frustrating it is to find the cost of delivery at the end of the check out page, which is why I have it clear displayed on the website. It shows you are transparent and operate with integrity. This builds stronger trust with your customers as well. They will thank you later in repeat and referral business. Extra eBlogging Tips With these basic principals in place, your eBlog should start appealing to more customers. We want to give them that extra incentive for them to buy from you because you will be competing with other popular websites in the marketplace. eblogging101_2Offer Customers To Join Your Loyalty Program: A great way to attract more customers and to keep them coming back for more is to encourage them to be part of your loyalty program. In the past I have set up e-Commerce websites with an option to reward them with 1 point for every dollar they spend. The more points they accumulate, the more chances of earning a nice reward. Your customer will be able to exchange their points for a new gadget - an iPod for example or a product in your range. Reward Purchases: You can reward customers who come back and order from you by giving them a discount on their next order. The more purchases they make, the more discounts they receive. It encourages them to purchase from you every time. Bulk Discounts: If you sell products that people buy in large quantities consider offering a bulk discount rate. It’s a great way to encourage larger orders and higher turnover of product for your Internet business. We love to think that we have saved money, even though we have spent twice as much to get that discount. Aldi, the supermarket chain is a classic example of buy in bulk and save, which encourages shoppers to spend more. The UPOD principle (Under Promise, Over Deliver): This is a principle I practise all the time in my businesses. Let’s say you offer normal delivery to deliver a product, which takes between 3 - 5 days to receive. What if you sent the product overnight via courier and it arrived the next day. Would your customer be ecstatic to receive their product earlier than expected? Of course they would! They would refer it to their friends and family because of fast delivery and good customer service. This is the under promise and over deliver (UPOD) principle that you can apply in your Internet business. There are a lot of similarities between a brick and mortar business compared to an online business. Businesses that offer good products and excellent customer service are able to capture market share much faster with smarter techniques. They will be the businesses that succeed and do well online. Gone are the days where you just put an eBlog website and hope for the best. You need to implement strategies and be smart to attract good quality customers for your Internet business, then you will reap the rewards. Tyrone Shum eBlogging 101


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Promoting your company and self with verve

Link Pyramids

The OLD Way of Advertising, May Not be so OLD

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.