Adopt Pay for Performance to Retain and Reward
“Motivating employees to work at their full potential is the main premise of successful management.” ~Enaldo Banovac
It feels good to be rewarded: either giving yourself a treat when you’ve accomplished something or to someone else to recognize their achievements. To realize high growth and fully experience a high performance culture, sync your total compensation strategy to propel the high performance you want to see. You can do this on an individual, team or organizational level. It’s fairly straightforward: adopt a Pay for Performance philosophy to reward high performance. Rewarding high performance with various levers at your disposal will help you continue to maximize potential and engagement, especially as things heat up in the job market.
Here are three levers to try:
Consistently Reward High Performance: As you experience high performance reward it. This means don’t wait to reward. Use levers such as a note of praise, a gift card or another token personalized to the employee. This is a form of feedback that says “You nailed it, well done. Keep going.”
Sync Talent Management to Rewards Cycles: Your Talent Management process should sync to your Pay Cycles to ensure you are rewarding performance throughout the year after formal talent reviews. The pay lever here should fully sync to the methodology you’ve adopted for performance management. If you have a traditional method of reviewing performance, make sure your rating scale is synced to specific rewards (% increase, etc).
Introduce Other Levers to Consistently Propel: Make sure your whole ecosystem is rewarding high performance and also providing feedback on poor performance, accountability measures to ensure you are moving on from under performers - whether that be through growth - up - or via exiting - out. If you aren’t holding under performers accountable and providing clear feedback (as you are for your high performers with clear feedback and rewards) your system won’t work.