• Build your systems
    • Chaos to Consistency
    • Bespoke Mentoring & Development
  • Systems online
    • Business Efficiency Bundle
    • Systems Mastery
  • Manager Development
    • Managers' Development Programme
  • About
    • Meet The Team
    • Marianne
    • Contact
    • Media
  • Books
  • Blog
Marianne Page
  • Build your systems
    • Chaos to Consistency
    • Bespoke Mentoring & Development
  • Systems online
    • Business Efficiency Bundle
    • Systems Mastery
  • Manager Development
    • Managers' Development Programme
  • About
    • Meet The Team
    • Marianne
    • Contact
    • Media
  • Books
  • Blog

Employee Rewards – incentive or incendiary?

12/16/2016

0 Comments

 
“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” 

Round here, we talk a lot about the 4 Foundations that will give a business owner McFreedom, that is, freedom to choose whether to scale, grow, or sell your business…or run it from a beach somewhere.

The 4 Foundations – Planning, Process, People and Performance – are all inter-dependent and inter-related, all essential for making a small successful business even more successful, without any one of the four, the business can’t fulfil its potential.

The fact is though, that the 4th foundation, performance management, which is the real cornerstone of the whole McFreedom System™ is often the one that is either forgotten or set up badly.

For your Performance Management system to add value, you need three things:
  1. Ongoing appreciative and constructive feedback
  2. Formal performance reviews, and
  3. Reward and Recognition
​
We’ve talked about the first two in recent blogs, so let’s take a look at number 3, and the common mistakes business owners make.

Or rather the biggest mistake that business owners make – making rewards all about money, or more specifically, the bonus.

So what’s the problem with bonuses? They’re giving your team members what they want aren’t they?

Well here’s just a few of the potential pitfalls:
  • They are rarely linked to any measure of business performance that the team can impact, and even more rarely linked to any individual performance measures, so they improve little
  • They encourage people to focus on the bonus, rather than the Customer – like the train driver who bypassed every station so he could meet his time targets.
  • They can be divisive; nothing stirs up unrest quicker than a bonus comparison among team members
  • They can make you look like you have no clue about what’s going on. Unless you really know how each individual is operating you can be taken in by a good talker and lose the respect of the team who know the not-so-rosy reality
  • Bonuses can become the norm to the degree that they are an expectation rather than an incentive, and cause grief if they aren’t given

To be really effective, a bonus, or better still a pay review, must be based around very clear measures of business performance first and foremost, and then, if the business has done well, very clear measures of the individual’s performance to determine the size of the bonus they will receive.

But money really isn’t everything, there are other much more simple ways to engage your team.
  • Develop them – train them both how to do their job well, and how to grow as people
  • Show them appreciation – thank them every day for a job well done
  • Hold regular ‘formal’ feedback sessions
  • Pay them well
  • Keep them up to date with how the business is doing
  • Listen when they tell you about blocks to them performing well
  • Challenge them to achieve goals rather than to work long hours
  • Celebrate wins big and small – with cakes or a meal out, or maybe with a visit to an interesting customer

In the words of Simon Sinek, author of ‘Start with Why’:

“When people are financially invested, they want a return. When people are emotionally invested, they want to contribute.” 

Do one thing: Consider how you are engaging your team emotionally on a daily basis

For more information on how MPL can help you visit www.mariannepage.co.uk or contact me on hello@mariannepage.co.uk
0 Comments



Leave a Reply.

    Picture

    Sign up for our weekly insights email below

    Sign up

    Author

    Marianne is the author of three books, and is currently working on her fourth, whilst regularly writing her blog, we hope you enjoy it :-)

    Archives

    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    May 2018
    March 2018
    February 2018
    November 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012

    Categories

    All
    Action
    Business Consistency
    Business Growth Solutions
    Business Owner
    Business Planning
    Business Relationships
    Business Systems
    Communication
    Cost Efficient Systems
    Creativity
    Customer Experience
    Customer Journey
    Customer Satisfaction
    Easy Business
    Efficiency
    Entrepreneur
    Family
    Feedback
    Get Stuff Done
    High Performing Team
    Hiring Well
    Leadership
    Management Development
    Managers' Development Programme
    Managing People
    Marianne Page
    One Right Way
    Overwhelm
    People Systems
    Performance Reviews
    Personal Development
    Personal Effectiveness
    Personal Management System
    Personal Process
    Personal Satisfaction
    Personal Systems
    Personal Transformation
    Planning For Success
    Planning System
    Process & Systems
    Scale Up
    Service Excellence
    Simple Logical Repeatable
    Success Habits
    Systems4Scale
    Team Engagement
    Time Management
    Time Management & Personal Effectiveness
    Time Off
    Training
    Vision & Values
    You Reap What You Sow

    RSS Feed

Picture
Get Started
Marianne
Blog
Contact
Terms & Conditions
Privacy Policy
  ©Marianne Page 2018
Picture
  • Build your systems
    • Chaos to Consistency
    • Bespoke Mentoring & Development
  • Systems online
    • Business Efficiency Bundle
    • Systems Mastery
  • Manager Development
    • Managers' Development Programme
  • About
    • Meet The Team
    • Marianne
    • Contact
    • Media
  • Books
  • Blog