John Hale is a strategic advisor at Hale Consulting Group. He assists leaders to craft and deliver value driven strategies. As Christmas rapidly approaches, let's look at end of year rewards from a strategic point of view. Written by John Hale.
As a speaker and advisor, I find that now is a popular time to review the year with clients and look for fresh ways to create superior value and remain competitive. Yet at times, I see some silly things take place in the silly season. Often there are ghosts in the corporate machinery and lessons to be leant!
A few years back, one of my new clients routinely paid all its 100 employees an annual Christmas Bonus of $500. This bonus was the only monetary reward given apart from salary and was not tied to any performance measure. Suffice to say, disgruntled and under achieving shop floor employees would wait until they received their bonus and then resign. Once I pointed this out to my client, we reallocated that money into a $100 Christmas Bonus and retained $40,000 for much needed staff training. In more recent years, both staff and company performance have benefited from the additional training and the regular exodus of unhappy staff just after Christmas has gone.
Lesson 1. What gets rewarded gets done.
Last weekend, a premium healthcare provider invited me to their Christmas party. At the party, the venue ran an open bar from 6pm until 1am, served very little food and offered no coffee or tea. A memo from the CEO a week prior, directed all staff to conduct themselves responsibly at this public venue. Yet, many staff seemed wasted by 11pm and nothing like the picture of health and well being the CEO hoped for.
Lesson 2. When we ask for A. but provide the conditions for B. we send mixed messages.
What steps could you take in future to align strategy with employee bonuses and rewards? Consider these five principles:
(i) Validity – Define and measure employee performance accurately.
(ii) Expectancy - Reward employees in a timely way.
(iii) Equity – Make sure all employees have access to rewards.
(iv) Reliability – Differences in pay levels must be based on actual performance.
(v) Reward – Give monetary and non-monetary rewards using (i) thru (iv).
Lesson 3. Reward consistently for delivering on what is strategically important.
John is a Strategic Advisor who inspires and transforms organizations and individuals alike. His passion lies in corporate strategy and conscious leadership. If you would like to know more about John's keynote titles, conference presentations and workshop options click here, or contact me on 1300 55 64 69.