By Julie Bort
Network World, 07/23/01
You stare at the latest set of project timelines
and rub your chin. You see no alternative - your staff will have
to pull some late nights to meet this deadline. But you'll make
sure they know how much you appreciate their efforts by telling
them they'll get a juicy cash bonus for meeting or exceeding the
tight deadline. You smile with self-satisfaction at this surefire
incentive.
But what seems like obvious good management is a
cobra in a straw basket. Only the most carefully thought-out reward
and incentive program works like a charm. In all other cases you're
heading for a poisonous bite.
"Don't look toward cash incentives to motivate
employees. Money raises expectations that if they do X, they get
X dollars. If it doesn't happen the second or third time around,
employees get dissatisfied," says Kathe Farris, president
of The Recognition Practice, an incentive program consulting firm.
Past experiences with poorly designed incentive programs
taught this truth to Shirley Foster, vice president of engineering
for Buzzsaw.com, an online site for the construction industry.
She once had a boss who offered bonuses for long hours logged
during big projects. Employees clocked in early and left late,
but weren't always productive, she says.
On another occasion, the boss asked workers whether
they wanted team or individual rewards, setting off a firestorm.
Some said they'd be offended if the team got the prize if they
worked hardest. Others said they wouldn't be motivated if they
thought another would get the reward. So the company opted to
scrap the reward program, frustrating everyone.
Some employment experts, including Alfie Kohn, author
of Punished by Rewards: The Trouble with Gold Stars, Incentive
Plans, A's, Praise, and Other Bribes, are categorically down
on incentive programs. Countless research shows that rewards routinely
lead to poorer performance and employee dissatisfaction, he says.
Like an addictive drug, the first reward works well but reactions
alter over time. Employees think they're entitled, get discontented
or feel like they're competing with one another. "This
is not an argument against money. It's an argument against dangling
prizes in front of people," he says.
To top
Make it personal
Still, most experts say the merits of a well-executed
reward and incentive program outweigh the risks. And, they say,
implementing a successful reward program means following rules.
For instance, you should typically issue the honorarium
after the fact, not use it as a carrot. Your reward must also
be something desired by the employee. In an online survey of 55
Network World readers, respondents named gift certificates
and similar cash equivalents as their favorite ways of being rewarded,
but said they are happy with just about any recognition (see graphic).
Also be sure to let your employees contribute to
the reward process. Encouraging them to send thank-you notes to
each other, cc'd to you as the manager, works well, Farris advises.
You'll get a good idea of who has the respect of their peers.
Illustration
by Riccardo
Stampatori
Rewards also can't depend on frequency — don't
give employees rewards because they haven't gotten one lately
or skip others because they have. IT staff prefer a unique response
to exceptional behavior, says Gary Dunham, database administrator
for WaterFurnace International, a water furnace company in Fort
Wayne, Ind. He recalls a brand-new company award his department
earned for circumventing a systems crash. "It felt nice to
be recognized, but now every month someone gets the award and
it's not as big a deal."
Buzzsaw.com's Foster adds that rewards have become
an important tool for her in this down economy. She takes pains
to choose likable gifts and write thank-you notes by hand.
She also carefully balances group and individual
recognition. When a team overperforms, she gives individual team
members different, but similarly priced, gifts. Once she offered
either time off or a year's prepaid home DSL line.
Foster also notes that a good perk one year might
not be so hot the next. Today, for example, recognition and a
sure career path handily beat out the stock options favored last
year.
A
peek at perks
What companies are doing in this economy.
Network World Careers Newsletter, 06/27/01.
Recognition strategies
A series of articles from the National Association for Employee
Recognition. The National Association for Employee Recognition
Network Worldon Management Strategies
Twice-a-week advice on how to improve your management skills in this free e-mail newsletter
Low-cost
recognition ideas
A list from Bob Nelson, author of "1001 Ways to Reward Employees."
Nelson Motivation, Inc.
Six Great Ways to Recognize Employees
Several real-world recognition gestures
given high marks by employees on the receiving side.
Ivy Sea Online
Communication & Leadership Center
Perks
for your people
How several start-ups are providing for their folks.
Network World on Management Strategies Newsletter, 04/30/01
A
motivating example
A look at the unique ways lock-maker Kryptonite
motviates its staff.
Network World on Management Strategies Newsletter,
05/14/01
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