Rewarding Results for Maximum Performance: Part 2 of the Successful Workplace Series

This is part 2 of the series referencing the original post, 5 Steps to a Successful Workplace.

We often gravitate towards training as a means to improve performance in organizations, however there are several non-instructional interventions that can be implemented to improve productivity and prompt employees to meet defined organizational goals. One such intervention is an employee incentive program.

Incentive programs are used to reward results among employees. It is estimated that incentive programs can boost performance by as much as 44%. That’s an impressive number, but it is only achievable if an organization properly designs their incentive program, implements it and measures its overall return on investment.

Incentive programs to reward results should not be created just for its own sake. There must be justified reasons for creating an incentive program and there are at least five conditions under which they work best:

1. Current performance is determined to be inadequate
2. The cause to poor performance by employees is related to deficiencies in motivation
3. The desired level of performance can be quantified in some fashion (for example, increase sales by 20%)
4. The desired level of performance (a goal) is achievable
5. The focus on encouraging certain behavior is not in conflict with other performance goals that are expected of the target audience as part of their daily routine

If these conditions are present and can be met, you can get started with designing your incentive program by doing the following:

1. Gain the support of upper management. You must have their endorsement and feedback
2. Be sure the incentive program aligns with the company’s mission, vision and values. Make sure the program is not counter to any goals or objectives the company is currently concentrating on
3. Set a budget for the program and stick to it
4. Promote the incentive program to right target audience

No two incentive programs are necessarily alike. So, make sure one person or a small group manages the incentive program and be flexible when running the program. You’ll likely encounter unforeseen issues that need to be resolved and you should be willing to make changes when necessary that are fair and equitable to the employees participating in the incentive program. Keep an open channel of communication and remember you won’t be able to motivate everyone through the program. Stay focused on the positive outcomes and you’ll likely see increases to employee performance.

Related posts:

1. Setting Business Goals and Objectives: Part 1 of the Successful Workplace Series
2. 5 Steps to a Successful Workplace
3. Simplify for Better Workplace Performance
4. Training and Development in an Economic Recession
5. Don’t Forget Your People and Your Customers in Your Long-Range Strategic Plan