You Get the Behavior You Reward
On consulting assignments, here are some of the questions I frequently ask the employees I interview:
1. How does your boss measure you?
2. When the end of the year rolls around, how do you know if you have done a good job over the previous 12 months?
3. If you wanted to receive a raise double the amount that you typically receive, what do you believe you would have to do to qualify?
Only on rare occasions are employees (except for salespeople) able to answer these questions since many owners and managers are still prone to give their people discretionary raises and in many cases discretionary year-end bonuses.
Experience has taught me that adults perform best when they know specifically what performance they must achieve to qualify for a specific dollar amount of year-end bonus incentive payment.
In high school and college, students earn grades depending on how well they score on quizzes during the grading period. They know that if they get all of the answers right all year, odds are excellent that they will earn an "A" grade.
In baseball, most players are paid a salary, but most are also paid a specific incentive payment based on how they perform against measurable objectives, i.e., stolen bases, homeruns, batting average, RBI, runs scored, etc.
Of course, assigning someone a measurable goal is no guarantee that they will achieve the goal, but at least they know what they have to do to earn "x" reward.
In business just like in life, performance rewards improve the odds that people will go the extra mile to earn the prize. The name they give this motivation is called winning. This is why they install scoreboards in sports arenas. How effective do you believe a basketball team would be if there was no scoreboard and the players couldn't see whether they were winning or losing?
The reward doesn't necessarily have to be monetary, however. The reward could also be recognition at an awards dinner. It could be dinner for two at a fine restaurant. It could be a weekend getaway for two at an upscale hotel. It could even be a trip for two to a nice resort.
Rewards, awards and incentive payments are terrific ways to motivate employees to stretch and put more energy and effort into their work. Incentives also aid in making work more fun.
Some owners will rebut, "?Yeah, but that's what we're paying them a salary for."
Yes, that's true. But would such naysayers want to work for a company that paid them a salary and kept them in the dark as to how they are measured or how their bonus is calculated?
Discretionary bonuses would be like the tournament committee at the U.S. Open deciding how much to pay the golfers after play had stopped and the tournament was over.
Based on what I see in the marketplace, the companies that get the most mileage out of their incentive plans are the ones that make it clear how the company's incentive plans are designed and what level of performance is required to achieve a specified reward.
Bill Lee is a consultant who works with managers who want to put more money on the bottom line and author of Gross Margin: 26 Factors Affecting Your Bottom Line. http://www.mygrossmargin.com; blee@mygrossmargin.com; $29.95 + $5 S&H.)
 Google News Updated : Sat, 11 Oct 2008 11:50:43 GMT Paulson Indicates Need to Purchase Bank Equity `Soon as We Can' - Bloomberg
Bloomberg - By John Brinsley and Rebecca Christie Oct. 11 (Bloomberg) -- US Treasury Secretary Henry Paulson indicated that pumping government funds into banks is a priority and said financial markets will remain volatile. US to buy shares in struggling banks Obama welcomes Paulson plan to buy equity in firms Publ.Date : Sat, 11 Oct 2008 04:21:05 GMT Stevens's Reputation 'Sterling,' Powell Says - Washington Post
Washington Post - By Del Quentin Wilber Former secretary of state Colin L. Powell told jurors in the corruption trial of Sen. Ted Stevens yesterday that the powerful Alaska Republican had a "sterling" reputation among the nation's military and political leaders. Reporter's Notebook: Powell Takes the Stand for Stevens Powell says Sen. Stevens' integrity "sterling" Publ.Date : Sat, 11 Oct 2008 03:13:53 GMT McCain calms supporters, urges respect for Obama - Los Angeles Times
Los Angeles Times - 'NO MA'AM': Sen. John McCain takes a question from a supporter who called Democratic rival Barack Obama an Arab at a town hall meeting in Lakeville, Minn. McCain-Palin's hot rhetoric risks GOP backlash McCain Lauds and Attacks Obama in Same Day Publ.Date : Sat, 11 Oct 2008 09:04:20 GMT Mugabe Hands Ministries to His Party - New York Times
New York Times - By CELIA DUGGER JOHANNESBURG - In a step likely to lead to the collapse of a painstakingly negotiated power-sharing deal, Zimbabwe's Robert Mugabe, in office for 28 years, has unilaterally declared that his party will retain the most powerful ... Mugabe 'gives Zanu-PF key posts' Zimbabwe's Mugabe hands key ministries to his party Publ.Date : Sat, 11 Oct 2008 10:57:49 GMT Palin violated ethics law, inquiry concludes - International Herald Tribune
International Herald Tribune - By Serge F. Kovaleski NEW YORK: Sarah Palin, the Republican vice-presidential candidate, abused her powers as governor of Alaska by pressuring subordinates to try to get her former brother-in-law, a state trooper, fired, according to an investigation ... Palin ethics lapse cited Alaska probe finds Palin 'abused her power' Publ.Date : Sat, 11 Oct 2008 09:58:28 GMT Thai protest leaders released on bail, vow new rallies - AFP
AFP - BANGKOK (AFP) - Leaders of Thai anti-government protests were granted bail Friday after surrendering to police and immediately vowed new rallies, raising fears of mounting turmoil days after deadly street clashes. Video: Raw Video: Tear Gas Fired at Thai Protestors PAD leaders surrender to Thailand police Publ.Date : Fri, 10 Oct 2008 15:31:03 GMT Morgan Stanley, Goldman May Gain Investment From US Treasury - Bloomberg
Bloomberg - By Christine Harper Oct. 11 (Bloomberg) -- Morgan Stanley and Goldman Sachs Group Inc., the biggest independent US investment banks, may reap cash infusions as part of Treasury Secretary Henry Paulson's plan to buy stakes in financial institutions, ... As Stock Falls, Morgan Looks to Japanese Bank Morgan Stanley hangs on Mitsubishi's $9bn pledge Publ.Date : Sat, 11 Oct 2008 04:30:39 GMT Increase Web Traffic |
PARLOT::Ebooks, Scripts,
Websites, and more... To get the best results you have to be very... Read More I recently received a most interesting phone call.When I answered... Read More Creativity can be defined as problem identification and idea generation... Read More Take some bold steps and help your employees and business... Read More There are 12 essential elements of a successful internal communications... Read More Definition From http://www.merriamwebster.com -- "Virtual: - being such in essence... Read More Someone can say, 'Why do you oppose this?' So I'd... Read More What is Six Sigma?Six Sigma is a quality management program... Read More Creativity can be defined as problem identification and idea generation... Read More Six Reasons to K.I.S.S. "Very often, people confuse simple with... Read More Leadership is lifting a person's vision to higher sights, the... Read More Insanity in the Sign & Graphics IndustryEinstein's DefinitionAlbert Einstein once... Read More While it's probably not true to say that the traditional... Read More Best Definition of "Corporate Culture"If you ask 10 people to... Read More FEAR! To what extent does fear rule your life? How... Read More Did you know that business executives spend about half their... Read More Many of you will recognise this quote from the 1960s... Read More Creativity can be defined as problem identification and idea generation... Read More Wow! You're brilliant! You have a great idea. You've looked... Read More "We are so different and individualistic that we can't work... Read More It's that time again! Perhaps the most dreaded management practice... Read More As a small business operator, personal checks may be one... Read More Fundamentals in Place? There is a designated place for everything... Read More In Stephen Covey's great book, "The Seven Habits of Highly... Read More Top leaders...Are Visionary Top leaders have a very clear understanding... Read More
Adsense
websites
Top Ten Tips About People Management
Management Apathy
Creativity and Innovation Management: Specialisation or Generalisation?
Five Steps to Increase the People Power in Your Business
Internal Communication: 12 Essential Elements
Objects in the Mirror are Further Than They Appear
Outsourcing Quiz: Cheap Vs. Good
Six Sigma Training 101 ? Better Management Basics
Innovation Management ? Selecting Good Ideas
Six Reasons to K.I.S.S.
Score the Rainbows Pot of Gold: Become the Boss That No One Wants to Leave
Einstein - Definition of Insanity
Why Outsourcing Could Be The Best Thing You Do For Your Business
Instantly Uncover Your Corporate Culture
Keep The Faith - Transform The Fear
Strategies for Planning and Conducting Effective Meetings
I Am Not A Number - Why Too Many Change Projects Fail
Business Innovation ? Organizational Structure
Try It Out On Your Team First
Managing Dickheads
Performance Appraisal Checklist: Raise Not Just Appraise Performance
What to do When You receive a Bad Check
Characteristics/Attributes of a Lean Operation
Building the Trust in Your Employees - 12 Easy Tips
Leadership Styles - the Ten Top Qualities the Best Leaders Show
Affordable and Reliable Web Hosting Starting at $4.49/Month
Dont Sweat the Small Stuff with Your Credit Policy
Do you know how many customers you have that are... Read More
Protect Your Computer System with a Comprehensive Security Policy
The most difficult part of creating a Security Policy for... Read More
Problem-Solving Success Tip: Use Your Project Management Skills
Solving a big problem is a project: you're far more... Read More
Oasis in a Cash Flow Desert - Four Resources That Increase Small Business Capital Streams
For small business owners, an enthusiastic vision for smooth, steady... Read More
Phone Sex is Bad for Business
On August 3rd/2005, Reuters reported that a German man had... Read More
When Code Freeze Turns To Code Slush
Time To Market (TTM) is a vital concept that every... Read More
Conflict at 36,000 ft
This was supposed to be one of those sleepy flights... Read More
Five Tips for Analyzing an Income Statement
In today's article, we'll be looking at the income statement,... Read More
Stomp Out Leeches In Your Company
Recently, I felt appalled to see a political candidate running... Read More
Spirits in the Corporate Boardroom.......Oh, sure......
There is a growing movement in the spiritual... Read More
Getting Software Developed for Your Business
At some point, your business is going to need to... Read More
Creativity and Innovation Management: The Value Of Due Diligence
Creativity can be defined as problem identification and idea generation... Read More
The 6 Steps to Six Sigma
Step 1Get the proper level of Six Sigma expertise at... Read More
Is Your Business Ethical?
Ethics - in a profession or trade - is that... Read More
The Seven Cs: Partnership Danger Signs - Conflict Becoming the Norm ? Part 2
A series of articles exploring the seven critical areas that... Read More
Ten Steps to Take the Work out of Work ? Replicate Yourself!
They say that management can be a lonely place. A... Read More
Five Ways to Influence Change in Others
Because of my work as a consultant, trainer and coach... Read More
10 Fundamentals for Effective Meeting
Here are ten fundamental concepts that characterize an effective meeting.Definition:... Read More
Teamwork Training: Learning to Build a Successful Team
Teamwork is a process that can be experienced outdoors and... Read More
ISO 9001 2000, Getting Started on The Route To Registration
ISO 9001 2000, Getting startedBefore starting the ISO 9001 2000... Read More
Knowledge Management - Lessons Learned and How To Identify Them
Many organisations use the term "lessons learned" to describe the... Read More
You Get the Behavior You Reward
On consulting assignments, here are some of the questions I... Read More
Think Before You Talk
What you say to other people can make or break... Read More
Stop Waste, Fraud and Abuse
Each year, businesses write-off six percent of revenue to waste,... Read More
Are You in AWE of Your Employees?
Employers have become so concerned about seeming "unfair" or worse... Read More
Business Management |