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Increasing Productivity

The Problem With Employee Rewards

We consider employee recognition to be one of the key drivers or enablers of continuous improvement.

Su-Mari Du Bruyn




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.

Increasing Productivity

The Entrepreneurial Case For A Co-Working Space

Morné Stoltz, MiWay Head of Business Insurance shares the benefits and competitive advantage of co-working business spaces.

Morné Stoltz




South Africa’s small business sector continues to grow, with the Global Entrepreneurship Monitor report for 2016/17 indicating that SMMEs now account for over 36% of the country’s GDP. Yet these numbers do not reveal the many challenges faced by local entrepreneurs, many of whom are unable to sustain their business operations due to limited support and countless administrative hassles.

Many entrepreneurs also suffer as a result of reduced opportunities for collaboration and networking, with many working from home or out of small offices that leave them with little exposure to other like-minded business owners, whilst their larger counterparts are able to build networks and push the boundaries of innovation by tapping into a wider spectrum of human capita.

Related: Workplace Evolution 2.0: Are You Ready For The New Era?

Entrepreneurs have been largely left to fend for themselves, leaving them at an obvious disadvantage in the marketplace.Yet, with the recent emergence of co-working spaces, this pattern is slowly starting to shift, with small business owners now beginning to band together in the absence of appropriate support from those able to give it.

Why you need collaborative spaces

Not only do these collaborative spaces expose entrepreneurs to others facing similar challenges, but they also facilitate networking opportunities and much needed interpersonal interaction without a hefty price tag. In these 21st century workspaces, entrepreneurs are able to feed off one another’s energy, discuss and find solutions to administrative challenges and share resources so as to preserve that all-important cash flow.

Some co-working spaces also host regular presentations and events attended by industry luminaries, enabling business owners to up their expertise and connect with relevant big players in their respective fields.

Could this new way of working be the answer for the South African economy, which relies heavily on SMEs to sustain its growth? Sadly, the massive administrative and psychological challenges faced by small business owners are unlikely to be completely overcome without the necessary investment from government and the private sector. Inevitably, businesses need both money and time to survive and it is usually only the former that frees up the latter.

Co-working spaces offer a lifeline to new business

Nonetheless, there is certainly an entrepreneurial case to be made for the co-working space. While it might not be a complete entrepreneurial elixir, it does nonetheless offer up a lifeline for new businesses, affording them access to the people and networks that can elevate emerging enterprises from good to great.

Related: The Workspace And MiWay Announce Entrepreneur Competition

That being said, not all co-working spaces are created equal and it is important that entrepreneurs seek out locations that best suit their businesses and working styles. Here are a few key things to look out for when embarking on the search for the perfect space:

Search for synchronicities

It is not simply enough to be around other entrepreneurs – if you want your business to thrive rather than simply survive, you will need to find a space populated with others in similar fields.

Naturally, you do not want to be sitting across from your biggest industry rival, but it is not going to do you much good if you are a marketing guru surrounded by a group of architects. So look for places typically frequented by those with complementary skills – it is the perfect kick-off point for great network building.

Do your research

Everyone has different working styles, so it is important that you find a co-working space that best suits yours. A loud, boisterous environment might be invigorating for some, while others prefer a quieter, more laid-back tone. By setting up camp in a space that facilitates productivity and energy, you’ll be far better placed to succeed.

Buy into the right benefits

Co-working spaces come in many shapes, sizes and price ranges. Ensure that you pick one that offers you exactly what you need without breaking the bank. While you’ll want your space to be adaptable in the event of growth, you also don’t want to have to invest in more square meterage than entirely necessary. By all means think big, but also preserve your bottom line for the time being.

Related: Lifestyle-Focused Work Environments Are Not Just For Millennials

You’ll also want to look into the other perks offered by your local co-working spaces. Many offer secretarial services, administrative assistance and other similar amenities, which are like gold dust for entrepreneurs who’ve started up their operations based on skills rather than savvy.

For other business owners, networking events and seminars might be exactly what’s needed to fast track your growth trajectory, so carefully weigh up the benefits and costs based upon your specific pain points and potential areas for improvement.

MiWay is an Authorised Financial Services Provider (Licence no: 33970)

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Increasing Productivity

You Can Motivate Your Employees Without Creating A Hyper-Competitive Culture

Creating work atmospheres where people choose to engage and do their best work for the right reasons will lead to sustainable success.

Gary Beckstrand




Recently, major companies – from the flashiest tech startups to centuries-old legacy banks — have made unwanted headlines due to unrealistic expectations and growth-at-all-costs behaviour.

Employees expressed concern that Uber favoured “high performers” over a safe environment for its female employees, as detailed by a former employee’s viral blog post; Zenefits created software to help its employees cheat on state online broker license courses to sell insurance illegally, and hired people with little experience in the highly regulated insurance industry. Also among companies reluctantly in the news recently, Amazon reportedly condoned workaholic behaviour to achieve its ambitions.

These companies exemplify company cultures that seem to focus only on results, leading to unintended consequences. Unfortunately, this corporate perspective is common to many Silicon Valley start-ups, as well as established companies.

In attempting to accomplish innovative feats, they ignore fundamental culture practices that will benefit every company, regardless of whether they’ve been around 30 months or 30 years and what metrics they’re trying to hit. Focusing on results without creating work atmospheres where people choose to engage and do their best work for the right reasons will lead to behaviours that put current and future business results at risk.

Related: These 4 Types Of ‘Nightmare Managers’ Are Scaring Employees Away

What can be done to avoid growth-at-all costs environments that continue to be an issue for many organisations? It begins with leadership.

How leadership can improve

Many leaders scale the ranks because they were effective doers – they got the results they wanted through hard work. These leaders often don’t understand that when they assume a new role as manager of a team, their purpose in the company shifts as well. Their primary responsibility is to influence the work of others rather than do the work themselves.

Often, inexperienced or poor leaders can be micromanagers who unintentionally put unhealthy pressure on team members, rather than taking a step back and creating an environment in which people can do their best work.

Connecting to purpose

Leaders cannot force their employees to do something, but they can give their employees the choice to engage. The best motivator for true engagement is to help the employee connect with the overall purpose of the company, rather than driving performance through fear or pressure.

Is your company simply driving results for results’ sake? Now might be the time to connect the results to an end benefit for the customer and to share that greater purpose with your employees.

People aren’t lazy

lazy-staffMany leaders hold the misconception that people are inherently lazy and will slack off if highly competitive cultures aren’t cultivated or goals aren’t mandated. They believe that if people don’t have structure and steep quotas to reach, their natural tendency is to not produce.

Related: 10 Tips To Motivate Employees Without Resorting To Money

The reality is people want to make a difference. People want to do great work and achieve what hasn’t been done before. If they feel their work is connected to a deeper purpose and the overall mission of the company, they will willingly spend more time on projects, rise to the occasion and hit targets, without undue pressure.

Recognising rather than penalising

Employees want to achieve great work, but they also want to be recognised for it when they do, rather than penalised if they don’t hit the mark. They want a culture that celebrates wins of individuals and teams instead of one that instills fear. A recent study conducted by my company found that of the six most common motivating factors that cause employees to produce great work, recognition is by far the number one factor.

We live in a competitive business world in which every company wants to go above and beyond the industry standard. Establishing aggressive goals and focusing on results is important; however, unless leadership works to create cultures where employees are motivated to do their best work for the right reasons, they may unintentionally reinforce unhealthy and unethical behaviour that puts the very business results they seek at risk.

This article was originally posted here on

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Increasing Productivity

How To Build Organisational Wealth Through Increased Efficiency

Using the right business systems can allow your staff to become more efficient through best-practices and better process flows.




As your business grows, the demands of running and managing all its parts increase. Fortunately, technology can help you standardise, streamline and adapt your operations in order to meet these increased demands. Let’s have a look at some of the ways in which you can increase efficiency to build your organisational wealth.

Integrated business units

It can be difficult to get a holistic view of what is going on in your business if information is floating between different departments and/or locations. Manually pulling data together can be very time consuming, causing delays and leaving greater room for human error.

Related: How To Improve Your Business Productivity And Efficiency With Help From Tech

By implementing an integrated business management solution, you can significantly increase efficiency among all your business units, allowing departments to easily share and access information. This real-time, inter-departmental integration allows you to get a birds-eye view of the performance of your business at the click of a button.

Business process automation

You can significantly save time by automating key business processes with an Enterprise Resource Planning (ERP) system. Accounting, for example, is much easier when details of all transactions are quickly and automatically shared between departments (no need to manually upload or download information).

Automation will enable your teams to respond to customer enquiries with alacrity and maintain optimal stock levels. Through automatic alerts and responses, relevant managers will be notified when stock reaches predetermined minimum levels. When these levels are reached, purchase orders for replenishment stock are automatically generated.

Automation also enforces consistency in your business’s day to day operations by following local and industry best-practices built into the system.

Synchronised customer data

The success of any small to medium sized business depends on getting new customers and providing excellent products and services to existing customers. Collating and sharing customer data across all departments is essential for effective customer service. SAP Business One, for example, provides the tools to track and manage the entire sales process, from initial contact and invoicing through to project management and after sales support – playing a pivotal role in customer retention management.

This complete view of past, present and prospective customers, along with historic purchases will help you to better understand your customers’ needs, behaviours and preferences. This will enable you to respond to clients effectively in order to boost satisfaction levels, increase sales, maximise profits and ultimately promote client retention. In addition, your marketing team can better plan campaigns based on insights from accurate data about prospective and current customers.

Related: 101 Efficiency Hacks For Busy Entrepreneurs

Instant access to information

You have to be able to plan properly to stay ahead of your competitors. Having access to up to date, relevant and accurate business data removes the guesswork and empowers employees to make informed business decisions. With an integrated business management system, you will be able to better manage your cash flow and stock holding with a real-time overview of current stock levels, orders in process and outstanding payments. This, in turn, will save time and allow you to better manage your procurement process and help build organisational wealth.

Who doesn’t like it when a plan comes together and things are working well? Working smarter and better – not harder – is what increased efficiency is about. Your teams will share the benefits of increased efficiency as you grow your organisational wealth together.

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