7 Essential Basic Elements of Employee Incentive and Reward Systems

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Do you want a strategy for motivating and rewarding employees that works for everyone? If that's the case, double-check that you've just gone over the PAMSITS (primary, secondary, intermediate, and tertiary aspects).

Summary

Do you want a strategy for motivating and rewarding employees that works for everyone? If that's the case, double-check that you've just gone over the PAMSITS (primary, secondary, intermediate, and tertiary aspects).
1. Performance
The purpose of incentives and rewards is to boost performance. It's going to seem obvious. But as that is the case, performance should be the main target of your system. Simply defined, performance means on job results. It is the very foundation of any system. And remember to reward team performance moreover as individual performance.
2. Achievable
Employees must believe that performance goals are attainable. If employees regard targets as very difficult or impossible you'll kill your scheme stone dead. This does not mean that your targets should be "easy" or "soft". There is a fine line between "achievable" and "impossible". Ensure you do not cross it. Before you decide on a strategy, talk to your staff about it.
3. Measurable
It almost goes without saying. But the performance required must be measurable. If you cannot measure the performance clearly and definitely, your system are receptive manipulation. Once that happens you will be suspected of manipulating it to suit "hidden agendas". Whether or not this can be untrue, that is what employees will believe. Then they'll try some manipulation of their own.
4. Superior
People are compensated for achieving particular levels of performance. Use incentives and rewards to acknowledge those whose contribution exceeds what you expect as a minimum standard. One major issue arises when extra awards are given for "regular" labour. It virtually tells employees that "normal" is nice enough. They no longer strive to be better performers.
5. Integrity
The most serious hazard to any award or scheme is a lack of perceived integrity. It's worth noting that I used the phrase "perceived integrity." What matters is how employees view the system. If you fail to pay detailed attention to any of the opposite six elements, you place the integrity of the scheme in jeopardy. Your scheme will collapse if employees lose faith in its honesty.
6. Transparent
However and whatever you opt to reward, absolute transparency is important. Every participant must have a thorough understanding of how the system operates. they must even be able to check their own progress which of other participants. Lack of transparency results in suspicion of "favouritism" or "bias" within the system. Discuss methods of reporting progress with employees in order that they're involved in setting transparency parameters.
7. Support
Many incentive and reward systems recognize those that achieve outstanding job results. Few people appreciate the people who support the top achievers by doing all the "legwork." However, without this assistance, the "stars" of the stage would not be able to achieve such great levels of success. When constructing your system, make sure that support staff participate within the rewards. They too are a part of the successful team.
Conclusion
So there it is: PAMSITS. But it's quite another acronym to recollect. It incorporates the concept of rewarding and incentivizing employees based on their performance. In doing so, they assist your business grow and develop too. Such systems rarely fail because the quantity of reward is insufficient. They fail because the fundamental "architecture" of the system is poor. That is what PAMSITS is intended to make sure.
Visit KMC Incentives for more information on employee incentive and reward programmes .

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