Some people will work harder for monetary gain but harder doesn't necessarily mean smarter or better
Do your incentive schemes keep employees focused? An exclusive feature published by HRD in partnership with Strategic Pay outlines all the things you need to know about leveraging employee incentive schemes.
Read the full Exclusive Feature: Building your business with better incentives here
Remuneration isn’t just about the numbers. Often it can be a make-or-break proposition for current or potential employees. “One of the things we believe at Strategic Pay is that dollars in and of themselves don’t necessarily create effective motivation that translates into real-world results,” said Michelle Read, Manager – Southern Consulting at Strategic Pay. “It’s a common misconception that this is how things work, but there are more factors at play.
Motivation is driven by a variety of factors, such as desire for autonomy or alignment with a company’s values. Some people will work harder for monetary gain but Read is quick to point out that harder doesn’t necessarily mean smarter or better.
“A reward program is a vehicle for your communicating to your staff what the organisation as a whole values,” said Read.
An incentive plan should be unique to your organisation and align with its values. Be mindful of the following components when structuring and planning your incentives framework.
- Eligibility – who will participate in the plan and why?
- Key performance measures – what is the mix of key performance indicators – individual, team or company.
- Quantum & Cap – how large should the potential pay-out be and should there be any limits.
- Funding and reward – how will the plan be funded and paid out? What is the type of reward?
- Plan type and terms – What type of plan is right for your business? What are the duration and governing rules of the plan?
- Objective – How will the incentive plan assist in achieving organisation goals?
Read the full Exclusive Feature: Building your business with better incentives here
