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.
5 Ways To Be More Productive In 2019 Without Driving Your Team Insane
Here’s how to get your business running faster and better.
When talking about their biggest challenges for 2019, many of the entrepreneurs I speak with say they’re overwhelmed with the rapid pace at which business operates today. Today’s consumers have come to expect instant gratification, and they’re putting pressure on companies to make sure that they get what they want right now.
Technology’s partly to blame for these questionably reasonable expectations. We’ve got virtually countless hours of on-demand video streaming content at our fingertips. We’re on the cusp of mass product delivery by drone. We get frustrated when customer service departments fail to respond to our queries within minutes.
Just a couple of decades ago, looking up information meant going to the library to check out references. Today, we don’t even type out our Google searches. We just holler at Siri or Alexa to get the answers, products and media we want.
In a survey by PwC, nearly four out of five surveyed customers customers say that they want experiences that are speedy, convenient and helpful. For businesses, reliably offering these experiences has become a constant challenge.
With 2019 already underway, why not make speed improvement one of your key objectives for the year ahead? Here are five strategies you can apply to speed up your processes as we get ready to zoom through another year.
1. Maximise your real-time social media opportunities
Knowing what delights customers most is a huge component of business leadership. Data from the 2018 Sprout Social Index suggests that there’s a widening disconnect between what brands’ social media profiles are posting about (61 percent of the 2,000 social marketers surveyed favoured teaching, while 58 percent favoured telling stories) and what customers want (73 percent of the 1,200 surveyed prefer deals, while 60 percent prefer posts showcasing new products and services).
So, how can you improve your organisation’s ability to discern what the market really wants right now? Conducting your own market surveys can help, but it’s a resource-heavy solution that yields dubious insights. Social listening, on the other hand, allows marketers to follow what people are saying about your industry, products, and competitors.
I’ve used solutions like SentiOne that can track such mentions across social platforms and online communities in real-time. Armed with this information, you’d be able to act on customer issues in a timely manner and even launch targeted campaigns that speak directly to customers’ interests with precision. It’s also a useful way to know what new features or products to roll-out or at least give you the starting point to start your market research.
2. Shorten time to delivery
Customers don’t like waiting for their online orders to arrive at their doorsteps. Last year, the maximum time that e-commerce buyers found acceptable for orders with free shipping was just 4.5 days, as reported by Emarketing. If they’re paying for shipping, they expect to receive their packages even sooner.
Having the ability to expedite delivery can be a major differentiator, but it’s a tall order if you’re a smaller enterprise. Thankfully, as the independent e-commerce economy has grown, so has the ecosystem of logistics services empowering the industry.
Using a third-party, fully white label-ready fulfillment partner gives you the capability to offer two-day shipping, without being dependent on Amazon.
Industry leader ShipBob, for one, can store your inventory in a network of shared warehouses around the country, so that products are ready to ship, with maximum proximity, as soon as your customers check out. Better fulfillment partners integrate directly with leading shopping cart systems like Shopify and WooCommerce and can save you and customers massive amounts of wait time.
3. Maintain a bird’s eye view of your business
With competition seemingly getting tougher every year, in 2019 your ability to make quick but informed decisions has become mission-critical. However, getting hold of the necessary information may require pulling data from dozens of sources, each with its own interface, before you are able to generate reports that are comprehensive enough to act upon.
A consolidated business data resource can provide you with an integrated dashboard that pools together information from all the platforms you use for social media, sales, project management, finance and marketing.
Even if you use separate services like HubSpot, MailChimp and Twitter, Rivery.io’s platform, for example, can aggregate real-time information from your accounts and even push metrics to the data repository of your choice.
You can’t afford to get stuck in the nitty-gritty anymore. Keep an eye on the trends that matter, so you can make smarter strategic decisions on the fly. I also like to use tools like Kipfolio, for interactive business dashboards that give me a pulse on everything from sales to accounting to marketing spend.
4. Accompany your customers on their journeys
As reported by Strategy and PwC, three out of four surveyed buyers in the U.S. say that customer experience is a major factor in their shopping decisions, citing speed and ease as their most valued factors. Yet, despite the efforts of developers and designers to create intuitive interfaces, some customers, especially those who lack tech savvy, have been known to hit roadblocks on their paths to purchase.
To avoid alienating these customers, you can ease access to your interface with an interactive walkthrough solution. Offering onsite chat, either automated or human-driven, can help maximise a sense of accessibility and trust, shortening the time to convert prospects into customers.
This type of “digital adoption” hand-holding can be a major game changer, especially if your sales prospects are less comfortable experimenting in digital environments. There are all types of new chatbot software tools that can be used for streamlining these conversations and navigating customers. We’ve used Drift across my various companies and found it works well.
5. Minimise slowdowns caused by absenteeism
Team productivity gets compromised due to staff taking unexpected time off can derail your entire operation. If you can’t find someone else to quickly step in and pick up the slack, it can be hard to fulfill orders and maintain pace on projects.
Using workforce management platforms can help you sort out staffing and scheduling issues, largely on autopilot.
Deputy, for instance, has functionalities that can help line up shift replacements when someone suddenly needs time off. Using the employee-facing app, team members can inform HR with just a few taps that they’ll be out, and the scheduling system automatically dispatches push notifications to others who have similar skills, asking for substitutions that can often be lined up before you even know they were needed.
Absenteeism was a big issue for one of the nonprofits I’m involved with and tools like Deputy have helped us to make necessary adjustments on the fly. Don’t let people interfere with your systems. Manage the systems that manage the people.
Be quick and nimble
Today’s business landscape moves at breakneck speed. But, things always go wrong. For your startups and scaling businesses to keep pace in the coming year, you need to be prepared, with systems in place to expedite processes and minimise the impact of bumps in the road. I wish you a prosperous 2019!
This article was originally posted here on Entrepreneur.com.
The Power Of Non-monetary Staff Incentives
Aim to align business and individual goals through a balance of monetary and non-monetary rewards, and you’ll soon see a massive impact on the bottom line and staff morale. There can be no greater incentive than that.
Maslow’s Hierarchy of Needs, one of the best-known theories of motivation, suggests that humans are motivated to fulfil basic needs – like food, shelter, and safety – before striving to satisfy more complex needs: health, companionship, self-esteem, and self-actualisation.
So, we get jobs to satisfy our basic needs. Then, with food in our stomachs and decent rest, we start to crave fulfilment in things money can’t buy: appreciation and respect, making a valuable contribution to the world, and – the Holy Grail of motivation – using our talents and abilities to achieve our full potential.
It’s no coincidence that the best companies to work for have and share a clear direction, offer challenging work, and entrench appealing cultures. Their employees feel valued and are empowered through opportunities for advancement and expressions of gratitude.
This is why we can’t assume that giving people more money will make them work harder.
Money means little if staff are overworked and don’t have the time or energy to enjoy the financial rewards they receive. People also respond better to incentives that address their psychological need for acceptance, appreciation, and accomplishment. Let’s look briefly at the ways in which organisations can show appreciation for a job well done.
Show me the money?
Part of what makes us individuals is the fact that we’re motivated by different things. A graduate will appreciate a cash bonus. A new mother might also appreciate more money – but money can’t buy her more time with her baby. Flexible working hours can.
In fact, studies suggest that the effects of monetary rewards are short-lived because people don’t differentiate cash bonuses from their normal pay. Extra money is quickly sucked up by household expenses and debt – i.e. by working to fulfil our basic needs.
Now, that’s not to say that we should discount monetary rewards. I believe there’s a time and place for both – and your business and culture are two of the biggest deciding factors.
The industry you’re in and the type of work an employee does dictates the incentives you should offer. Some roles – like commission work – require a more financially motivated incentive system to ensure the smooth running of the business and to achieve personal targets. Salespeople bring in business, profit grows, salespeople are rewarded financially.
But admin and marketing staff, for example, receive set salaries and not commissions, so they can be acknowledged for excellent customer service or for improving an inefficient administration process. For them, training courses, movie tickets, vouchers, or even time off to pursue a personal passion project might offer a bigger thrill than money.
Any incentive programme must align with your company’s goals to ensure that the group works towards the same outcome. Employees are more likely to take ownership of their roles and responsibilities when their contribution to the bigger picture is acknowledged and rewarded. And, in pursuit of their own excellence, the business’s interests naturally benefit.
Successful reward programmes balance intrinsic and extrinsic motivation (when we do something because it aligns with our values and because we want the reward).
Getting this balance right is critical to retaining talent. Being passionate about work is one thing, but passion doesn’t pay the bills. Just as dangerous is having a workforce that’s only motivated by money but produces mediocre work. The magic happens when we reward employees for the outcomes of their passion: Happier customers and a healthier bottom line.
The sweet spot lies in incentivising positive behaviours as much as goal achievement. The behaviour might not be directly linked to the financial performance of the company but there may be other obvious benefits, like improved morale or an attractive company culture.
The power of gratitude
Positive behaviours needn’t be rewarded with money or redeemable points. A simple ‘thank you’ goes a long way. One study noted a 50% increase in the amount of additional help being offered as a result of appreciation, suggesting that motivation extends past material things. And a boost in self-esteem ticks all the right boxes in Maslow’s fourth level of needs.
Although basic, recognition and appreciation are often overlooked motivators. The same study found that only 15% of us consistently say ‘thank you’ at work. According to another study, 79% of employees quit their jobs because they didn’t feel appreciated.
Positive behaviours can be subtly reinforced using tactics like leader boards, employee-of-the-month posters, floating trophies, free lunch, or time off. It’s the little things that count.
As individuals get older and enter different phases of our lives, there’s an evolution in the things that motivate them. As leaders, we need to build meaningful relationships with our staff, to better understand what motivates an individual today, not what motivated them five years ago. This depends on constant communication and open engagement and feedback.
Bottom line? We need to think differently about motivation and to apply creativity and innovation to company incentive programmes. Aim to align business and individual goals through a balance of monetary and non-monetary rewards, and you’ll soon see a massive impact on the bottom line and staff morale. There can be no greater incentive than that.
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.