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Staff Rewards and Incentives – 10 Traps To Avoid

Do you have a staff rewards and incentives scheme in your business? If you don’t, you should have. Rewards and incentives work well to improve staff performance. But there are some major traps. Make sure you avoid these.

1. Lack Of A Clear Business Connection

Rewards and incentives have two purposes – to reward staff and to enhance your business. You need to make the connection absolutely clear. And ensure that your employees understand that connection.

2. Rewarding Behaviour

This is a common error. Your scheme must reward performance: what staff achieve on the job. Rewarding behaviour: what staff do that may or may not achieve results debases the incentives. In other words, rewards sales closed, not calls made. Reward orders processed and delivered, not paperwork completed.

3. Rewarding What Staff Are Already Paid For

You pay your employees a basic salary. In return, you expect a certain level of performance. When an employee meets your performance expectations, he or she has satisfied the “basic contract”. Do not pay incentives for performance that you could reasonably expect in return for basic salary.

4. Absence Of An Incentive Scheme

Rewards and incentives should be contained within a system. The system or scheme should have specific goals. The value or nature of the reward should be clearly related to the goals. One off “slings” of cash or time off or gifts may be a minor part of the system. But they are not a system.

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