EMPLOYEE REWARD MECHANISM
EMPLOYEE REWARD MECHANISM
An employee reward mechanism is essential for a company in order to motivate employees and raise competitiveness. It is an extremely complex matrix as it requires creativity, calculation and consistency. Job security & opportunities for advancement encourage employees to take pride and thrive for more. The reward mechanism must includes the following four elements: compensation, benefits, recognition and appreciation. In addition, it is also important to balance the percentage of monetary reward and other rewards in order to stimulate participation of the program.
Designing a reward program:
Below are some ideas of how a successful employee reward program should cover:
-
Identification of company/group
-
Identification of the desired individual performance/behaviours
-
How to measure the performance/behaviours based on seeable achievements
-
Determination of the nature of the rewards
-
Communication of program to employees
-
Duration and frequency of the program
​
Before designing the reward program, employers must conduct what to include and how achievements will be recognized, where all of these must be listed and published clearly within your company.
Did you know?
Incentives work much better than punishments. Microsoft used to run a campaign where the bottom 10% of every team will be terminated. Despite the fact of the competitiveness, employees actually became less communicative and only care about individual performance as a result. It creates a scenario where employees either do not want to coach each other, or that simply because you know someone is doing worse than you, you stop at the benchmark where you get a pass instead of thriving of excellence. A wrongly design employee reward campaign can lead to low in productivity and sustainability in the long run.