Motivational and reward practices

“Companies design a variety of motivational and reward practices to create a work environment that energizes employees and promotes better strategy execution. Other benefits of a successful recognition system include high job satisfaction, high retention rates, and increased output” (Thompson, Strickland, Gamble, & Thompson, 2015).

As part of the strategic objectives of a company, incentives based on measured performance objectives should be administered with complete objectivity and impartiality. They should also follow certain guidelines:

1. Incentives for performance goals should be considerable when compared to the rest of the compensation package;
2. Incentives should be available and attainable for all employees (not just executives);
3. Performance targets should be considered ONLY if the individual or team have an affectation on the target;
4. Mete out awards or incentives in a timely manner;
5. Avoid rewarding effort that does not produce the desired results.

Most employees expect annual raises in pay. The motivation associated with what is expected is short-lived. “One of the most discussed unintended consequences of financial rewards has been the assumed erosion of intrinsic motivation, also called the crowding-out or undermining effect of extrinsic incentives” (Antoni, Be=eaten, Perkins, Shaw, & Vartiainen, 2017).

            Incentives/rewards for preferred behavior, being “caught” for exceptional service, or receiving positive feedback from an unsolicited source can be an alternate means of effectively motivating employee performance.

These rewards do not have to be in standard bonus form. Getting to leave work early, tickets to special events, and public recognition are examples of alternate rewards for employees. As well these do not have to be pre-ordained; spontaneity and  acknowledgment among peers can be highly motivational. For example, at a staff meeting an employee can be recognized for exceptional performance or meeting/exceeding a goal.

Antoni, C. H., Baeten, X., Perkins, S. J., Shaw, J. D., & Vartiainen, M. (2017). Reward management: Linking employee motivation and organizational performance. Journal of Personnel Psychology, 16(2), 57–60. Http://www.freemanagementresources.com

Homisak, L. (2019). How to Reward Your Employee (Aside from a Pay Raise): There are many ways to boost staff enthusiasm, motivation, and job satisfaction. Podiatry Management, 38(1), 65–68. Retrieved from Http://www.freemanagementresources.com