Before we continue – it is important to clarify how we distinguish between employee rewards and employee recognition:
- Employee rewards: Refers to something of monetary value – for example a cash incentive or a gift voucher, used to reward employees for good behaviour.
- Employee recognition: Refers to an action that conveys a “thank you” – usually this has negligible or no cost involved, and it is used to recognise employees for good behaviour.
Related: Why Incentivise?
R = Repeatability
- Rewards are generally one of the first “luxuries” to go when a company needs to tighten its belt. Removal of this perceived benefit could significantly demotivate employees, causing the desired behaviour to disappear as well. You have to consider very carefully your ability to sustain it in the long run (not just during the “good” times).
E = Encouraging the wrong behaviour
- The desire for the reward could drive employees to exhibit undesired behaviour – finding loop holes, cutting corners or double crossing their colleagues just to get to the reward. Your culture should be one of excellence. Employees are getting paid to do their job, so be very careful to not reward them for what should in fact be the standard.
W = Waning value
- Simply compare how that first drive in your brand new car felt versus how it feels when you drive it for the thousandth time – not as exciting anymore, is it? At some point in time your reward will lose its ability to motivate the same kind of effort and excitement as it initially did, leaving you in a never ending position of having to continuously increase the monetary value related to it (and we have not even broached the subject of keeping up with inflation).
A = Administration
- Who is going to organise the availability of the funds, the purchasing of the gift etc. every single time? How intensive or complex is this organizing process? Will it be the first thing to fall behind when “more important” tasks loom? Can you guarantee that cash will always be available or that available funds will be prioritised for this purpose? How will this be accounted for in the accounts?
R = Root cause identification
- Consider very carefully why you are implementing a rewards system – what are you trying to achieve? And are you sure you can achieve it in this manner? A company sometimes implements an incentive scheme for their sales people with the hope to increase their sales, when in fact sales are being hampered by the quality or price of the product and not by the effort of the sales people. Now, instead of identifying and addressing the root cause, they effectively insult their sales people by implying that they are not already delivering their best efforts and that their best efforts can only be bribed out of them.
D = Diversity
- Are you certain that the reward you have chosen will really be considered a reward by all of your employees? They live in different areas, have different interests and are motivated by different things. If, as an example, we are considering clothing, then the differences in shapes and sizes need to be considered as well. Choosing the wrong gift for the right person could significantly demotivate employees.
S = Selecting the right recipients
- Who do you reward? The person who came up with the idea? Or the person who executed it? Is it the sales guy who closed the deal or the 100 employees involved in the manufacturing process or the buying department that made sure that all the components were there on time or the despatch department that made sure it got to the customer on time that should be rewarded? Remember that in most instances every employee is only one link in a long chain that needs to work together to achieve the desired end result, so make very sure that your reward system encourages team work. Consider very carefully your judging process – do you reward based on the idea being generated or the execution of the idea or the end result of it? Be very careful that you do not start sending a message through your actions that the small steps in the right direction are not valued. Many small things can make an incredibly huge difference. We would also caution you to be very wary of playing ideas off against each other. You are treading on very dangerous ground if an employee’s idea was not the best compared to the others this month, but would have been the best compared to the others of last month or the next. Again this can demotivate employees or cause them to delay raising their ideas or executing improvements until such time that they believe they can “win”.
This does not mean that there is no place for employee rewards, but we believe that they are better employed in a way that surprises and delights employees, utilised as the exception rather than the rule.
Related: How to Structure Salary Packages
Recognition has much fewer pitfalls, but one very important key to its success is that you MUST be honest when applying it! Make sure that you are consistent with your recognition and give it a personal touch with a handwritten thank you note and / or personal hand shake from the big boss for example. It is a powerful mechanism that can also strengthen the relationship between the various management levels.
We consider employee recognition to be one of the key drivers or enablers of continuous improvement. It can facilitate employee commitment and encourage participation. It is a cost effective, valuable and appropriate way of recognising a wide range of “good” behaviours and you can have fun with it as well to celebrate a huge variety of successes.
Listen To Lead – Giving Staff Space To Speak Can Pay Dividends
Are you listening or hearing your staff?
Excitement, vision and determination are all great qualities for an entrepreneur, particularly when you are setting up your business. But when you move into the consolidation and then growth phases, they could backfire.
It may come as a surprise to you that such positive qualities could ever cause any negatives. But once you have driven every last muscle to get your business up and running, you need to transition yourself into managing it. For that, you need to work as hard on your people skills as you did on your start-up.
It is true that decisiveness is a key attribute of a successful manager but your decisions must be based on solid evidence and intelligence you have gathered. Try as you might, you cannot be everywhere in the business at once and so you need to soak up and sort out the observations related to you by your staff.
Make a point of being seen regularly on your shop or factory floor and chatting in a relaxed, non-judgemental way with your staff and any customers who may be around. Stalking around saying nothing is just as intimidating to your staff as the habit that some bosses have of appearing very infrequently simply to bawl people out.
People skills are so critical because it is people who buy your product and people who work for you. Whichever way you look at it, your business is people-driven.
So to win the loyalty of your shareholders, customers or surveyors, you need to show that you treat all people with the respect each one deserves and can mix positively with each and every one. Getting to know your staff in this way will develop in you the subtleties of emotional intelligence, a skill that is vital to your ultimate success.
With emotional intelligence, you will be able to adapt your management style to achieve the best results from each individual. You will know instinctively when a staff member needs a few words of encouragement or comfort, or when and how much to push to get the best out of them – perhaps even more than they knew that they had to give.
At Cash Converters SA, all our managers are expected to polish their people skills to achieve the best for themselves and the staff reporting to them. Even our top management team is not exempt and makes a point of putting a day or two aside each month to visit a different franchisee round the country.
That way we can help mentor and coach them to deal with any management problems that they may be encountering. From a corporate and strategic point of view, we can also check that the corporate branding is on track and listen to feedback on whether any new lines are working well or not and to suggestions for new brand extensions or even new and complementary income streams.
In that way, an apparently soft skill can make your business even more competitive. By insisting on strong people skills among your staff, you will build a more harmonious working place. To complement this, incorporate relevant feedback into your planning. This will have a positive impact on the bottom line, which is exactly what leaders want to achieve.
So keep quiet and listen as much as you can. Make a point of not anxiously filling nervous silences with hasty instructions or long technical lectures. Then you will benefit the business by hearing what your staff need to get the job done and who is blossoming into a promising talent.
Use Talent As Your Key Competitive Advantage In 2019
What separates top performing companies from their more mediocre counterparts?
Ever since Jim Collins wrote about getting the right people in the right seats on the bus in his best-seller Good to Great, there has been an ever-increasing focus on the role that talent plays in the success of an organisation.
But, If you thought that great companies are successful because they attract, hire and can afford more talented employees, you’d be dead wrong. While conducting research for their book, Time, Talent, Energy: Overcome Organizational Drag & Unleash Your Team’s Productive Power, Bain & Company experts Michael Mankins and Eric Garton evaluated the relative productivity of 308 companies worldwide, and found that on average, all roles, across organisations, are made up of 14% A-level talent. This statistic holds true for the best-performing companies as well as poor performers.
In fact, the top-performer in their focus group was 40% more productive than the rest, but did not have significantly more A-level talent. This means that they had achieved what their peers had by 10am on a Thursday — and then continued to produce for the next two days.
As you head into a new year, consider what you could have achieved with an additional 90 to 100 days over the course of the past year? Where would your company be now?
Unlocking your potential
If talent is not the deciding factor, then what is? According to Mankins and Garton, it’s how that talent is deployed. They found that most companies have one A-level talent per team, spreading talent evenly across the organisation.
The problem is that this doesn’t take critical roles into account. Organisations that take the time to map critical positions within the company that directly impact key business objectives tend to be more productive. Why? Because their A-players are in the right positions and not wasted on non-critical roles that could just as easily be filled by B-players.
As an entrepreneur or team leader, your role is to grow your business or department. Your people are key to achieving this, so consider the talent you have to work with:
- Are your top players in mission-critical roles?
- Can they directly impact revenue growth?
- Are they filling roles that a B-player can just as easily do, and which won’t impact revenue if the same level of productivity or efficiency is not achieved?
Related: Competitor Analysis Example
Efficiency versus productivity
While you evaluate your workforce, consider how Mankins describes efficiency versus productivity.
Efficiency is when the same amount is produced with less. To become more efficient, businesses need to find wastage and eliminate it.
Productivity on the other hand is when we produce more with the same. This is achieved when you increase output per unit of input and remove any obstacles to productivity.
Lean organisations are very good at finding efficiencies. Growth organisations are highly productive. If you want to achieve both in 2019, start by ensuring your A-level talent are in the right positions. Then look at all the areas in your business that are costing you money and consider how you can strip those costs away without affecting your productivity. You do not want to hinder growth. You want to run a smarter, leaner business.
Finally, you don’t need to do it alone. Too many entrepreneurs work independently of their teams. You’ve hired great people — use them. What are their suggestions on improving productivity and efficiencies across the business? Ask the right questions and you may just discover talent you didn’t know you had.
Working Remotely? Why You Need A Car
The cars available at vehicle auctions in South Africa consist of both sedans and zippy hatchbacks which are perfect for town driving and will get you to your in-office meetings on time.
Remote work can be an amazing experience. You do not have to wake up at 5 am to beat the morning traffic and you can work from the comfort of your own home office (or bedroom). Working remotely can become lonely and you might have to visit the office for certain projects. This means that you will need to have a car.
If you are in search of an affordable but reliable car, vehicle auctions in Gauteng could provide the perfect car to meet your needs. Not sure why you need a car if you are working from home? Below are just some of the reasons why it is a necessity.
You might need to go into the office
While some remote work does not require you to be in the office, there are some instances that you might be required to go into the office. This can prove difficult if you do not have a car and have to rely on public transport.
Public transport can be unreliable, which means that you might not arrive on time for meetings or project conferences. Being on time for meetings and group chats is important, and being late can add to your stress levels. Having a car will help to make this journey easier. The cars available at vehicle auctions in South Africa consist of both sedans and zippy hatchbacks which are perfect for town driving and will get you to your in-office meetings on time.
You will need to perform daily errands
Whether you work from home, from a coffee store or in an office, the truth of daily life is that there are always errands to run. And without a car, you might not be able to perform these errands easily.
Grocery shopping can become heavy to carry home if you walk, and an appointment in a suburb far from your own might have to be cancelled. While these might not be as important as your work, you will soon find it frustrating having to call for a lift from a service such as Uber whenever you need to leave home. Not only will this become costly, but you will find it ineffective if you are in a rush or need to be somewhere at a certain time.
You might get lonely
Remote work does allow you a lot more freedom, but you have to put in the same hours as an office job. And these hours can become lonely if you are cooped up inside all day, alone. Having a car will allow you to meet up with friends in the afternoon or weekends.
Auctions will provide you with a diverse array of cars to choose from, including 4×4 options for those who enjoy longer journeys and adventures. Becoming lonely can be distracting and cause you to run behind on your work. If you are looking at working remotely but know that you could fall victim to this feeling, be sure to socialise with friends and family whenever possible. Having your own car will make this possible.
There will be client meetings
Remote work will mostly mean that you work from home or from your favourite coffee store. But it can also involve meeting clients to discuss a brief, which can be tricky if you have to rely on public transport. Not only will being late cause you to stress, but it will be a bad representation of your company for the client.
If you are able to drive yourself to meetings in your own car, there is a higher chance of a successful meeting. An Uber driver might get lost and a bus might break down, but your own car is reliable and affordable. If you have to meet a client urgently about a project, having to rely on public transport can be disastrous.
It is vital to take the fact of client meetings into account when you decide to work remotely and ensure you are able to represent your company the best way possible.
There will be company get-togethers
A company that consists mostly of remote workers is guaranteed to have regular get-togethers so that all the team members can meet each other and get to know one another. Sometimes, these get-togethers might be far away, and you will need an easy and effective mode of transport.
If you are in search of a car to get you from home to the next work gathering, the auction cars in Gauteng will certainly fit your needs. Not attending company get-togethers and events will reflect poorly on your ability to work in a team, regardless of if your team works together in an office or not. You will be able to learn more about your team and the company as a whole at these events.
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