Posted in:Total Rewards
There are many benefits when you link employee performance with rewards, but there can also be a lot of unintended consequences if it is not done properly. Hence, we would like to share a few tidbits of advice to help business owners get started on designing their rewards programs effectively.
Designing a Rewards Program
The first step toward designing a successful rewards program is to determine the broader goals that the program is intended to support; from there, determine the employee performance metrics that will help take the company toward the goal. For example, a company may seek to increase sales. For the sales team, they may focus on the increased generation of qualified leads or closing rates. You have to determine what is measure of success is important for you.
Once a broad goal has been identified along with performance metrics that support the goal, the next step is to determine how to measure success. In the example above, the company wants to motivate the sales team to generate more qualified leads. This could be measured with hard numbers (X leads per week), or it could be relative; a 10% increase in leads compared to the same week last year.
Once you have a clear sense of what you want to achieve with a rewards program, the next step is to define the parameters of the program. Often this comes in the form of monetary rewards, but not always. The right reward will vary depending on your team members and what they perceive as valuable.
Communicate to Your Team
Once the details of the rewards program have been finalized, it is important to communicate the new program to the team. While the introduction of a rewards program is almost always positive, some employees may need reassurance that the new program doesn’t affect their existing base pay. Your employees will also need to know exactly what is expected of them in order to have a clear picture of what they are working toward. Finally, ensure employees understand how their efforts help support the company as a whole. Employees who feel their contributions are meaningful are often more inspired to aim for excellent performance.
Here to Help
For further details on how Honiva can help you prepare you during your recovery and rebuilding, please view our service offerings. We also welcome business owners to attend our next online seminar to learn how to improve employee management practices and strengthen your company long term. Register for the free HR Education session at EventBrite.