The one crucial tip you must know when implementing performance incentives...
TIP: Don't get too risky!
Your performance incentives shouldn't put the company at risk, whether it be financially or otherwise.
For example, if there's a drop in the economy, don't commit to paying out incentives, as this could severely hamper your company's pocket.
Keep reading to see what to do instead…
You're obliged to do performance reviews. That's why you need an extremely easy to use, highly efficient system.
The first performance review software is now available in South Africa.
This software will help you determine quickly and accurately:
Your employees' skill levels;
How every employee contributes to the overall business performance;
The training and skill-enhancing requirements for every one of your employees;
How to properly motivate your employees;
The required disciplinary measures.
So if, for whatever reason, you find yourself in a situation where you can't pay performance incentives to your employees, you should do the following:
· Give all affected staff advanced written notice. Let them know that you're considering not paying them their bonuses. Invite them to give their input, whether in writing or verbally, on the matter and to propose any solutions. This can make them feel a part of the decision making process and a sense of responsibility over their wealth;
· It's important to give your employees time to process and consider the notice. Give them at least 24 hours to comment on it and come up with solutions;
· Genuinely look into the feedback of your employees and seriously consider the feasibility of each proposal; and
· Inform your employees as to whether you agree or disagree with their proposals and provide satisfactory reasons for why you say so.
To learn more on what you can do if you can't afford to pay your employees performance incentives, page over to Chapter B 03
in your Labour law for Managers
handbook, or click here
to order your copy today.