Three elements your performance incentives must contain
Performance incentives are beneficial for one obvious reason, is they help get what you want out of your employees, to help further your company. In other words, they help to ensure top-notch performance in your workplace.
You see, performance incentives carry an opportunity for reward. And so they act as a motivational tool, encouraging all employees in the workplace to go the extra mile for your company.
But in order to reap these rewards, you need to ensure that your performance incentives contain the following three elements...
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.
The three elements your performance incentives must contain…
Element#1: Review your performance incentives regularly
For example, if drivers are rewarded for the good maintenance of their cars, and performance is measured monthly, then give them their incentives in the following month.
Or in a situation like profit sharing, incentives will be paid on an annual basis because they can't be given until the annual profits have been calculated.
It should be affordable. In other words, the incentive awarded should not be more than what's gained by the effort.
For example, if R150 000 is gained from the effort, don't go and pay more than R150 000 in incentives, unless you have other reasons to do so
: Consider all the possibilities
It's important for you to create rules around various factors when it comes to your performance incentives.
For example, you should provide rules around whether or not you'll provide performance incentives during resignation months. Because if an issue like this crops up in your company, and you haven't dealt with it in your rules, then it can turn into an ugly dispute very quickly.
So rather make rules, around your incentives, for every possibility.
*To learn more on performance incentives, go to Chapter I 01
in your Practical Guide to Human Resources Management
Alternatively, click here
to order your copy today.
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