It’s inevitable that somewhere, somehow, in business, a process is in some way dependent on an individual. Another way to look at this is that no business can exist if we keep people entirely out of it. Do your employees experience that they are the core of your business’s existence?
Do you regularly stop to say “Thank You” for a job well done? Do you acknowledge them when someone has gone the extra mile to help a fellow colleague or a client? Do your employees feel valued and appreciated for their efforts and commitment?
Reward systems work
Reward and recognition is a powerful way of encouraging the right kind of behaviour from your employees and to make your company an employer of choice. It’s one of the key elements that clearly distinguish the best from the rest. There are many ways to apply reward and recognition in the workplace and it does not have to cost you much. Here are some ideas of ways to reward or recognize your employees:
- A gift or voucher
This can be for an experience like a massage or a voucher for the recipient to take his or her entire family out for supper.
- A written thank you
We have found that a hand written note has the biggest effect. This could be given to the individual at work in front of his or her colleagues or sent via mail to their home. Alternatively it could be included in a flash email that is sent out to the entire organization. The most important thing is that you took the time to say “I saw that! It did not go unnoticed and it is appreciated.”
- An increase, bonus or promotion
Increases and bonuses should always be performance related and it should be applied consistently throughout the entire organization. Be very careful that certain managers in your company do not give high scores more easily than others or give high scores for the wrong reasons.
Promotions should not be based on seniority, but on competency. Keep in mind that the fact that someone is good in a job as an expert and employee does not necessarily mean that the person will be an excellent supervisor or manager. Have a plan in place to advance experts within your organization without necessarily placing them in a managerial role.
This aspect is about showing that you actually value your employees enough to be interested in them and really care about what interests them and what is going on in their lives. This can be done with a birthday card, flowers when they are in hospital, a gift when their baby is born and a sympathy card when they have lost a loved one.
These are small things that do not have to cost much. It makes a big difference receiving a sms to check how you are feeling when you are off sick at home with the measles versus your boss dropping your laptop off at your home, expecting you to work even though the doctor has booked you off. Not bothering your employees unnecessarily after hours also falls into this category.
- Ask, Listen and Utilise
Asking for someone’s opinion, really listening to them and using their input where appropriate, shows that you value their point of view.
Showing that you trust someone to complete a project or take care of business while you are out of the office, without following up on them every five minutes, shows that you trust them and believe in their competency.
- Training and development
Giving someone the opportunity to attend training and participate in projects for their own development (even if slightly outside of their current role) can be an excellent win-win reward for employees. It is wrong to waste a training opportunity on ‘dead wood’ in the organisation just because you can afford to have them out of the office for a day or two.
Having a system whereby an employee of the week or month is chosen, or the best performing team of the quarter is displayed and / or a trophy or certificate is awarded, can be a great way to recognize excellent performance.
Sharing information freely with employees and encouraging and participating in two-way communication is an incredibly important part of showing your employees that you value them.
- Lucky draw
Let’s say you have a problem with some staff regularly arriving late. You can hold a lucky draw to reward one (or a few) of the people who have been at work on time the entire month.
- Enable them to Pay It Forward
If you hold a random lucky draw it can also be with the requirement that the recipient spends the voucher in some way to do something nice with someone who has supported them at work in the last month or alternatively they can choose a fun activity for their entire department to enjoy together.
These things can do wonders to encourage teamwork within the organization. A variation of this is to let them choose a charity of their choice, for the business to support in some way or another.
- Make their environment nice
As a reward for the achievement of a specific target, buy the big screen TV they have been wanting for the canteen area or the cuppachino machine for the kitchen. Alternatively give them a specific budgetary amount with which they can redecorate their office area to make it nice.
- Being flexible and accommodating
If someone works through their lunch hour 90% of the time and then needs to take a two-hour lunch off site once or twice a year, accommodate this without demanding that they work in that extra hour. If someone is responsible and reliable, but needs to work from home for two days because their child is sick, be flexible to allow them to do that rather than making use of their family responsibility leave.
An effective reward and recognition system does not only include just one item from the above list, but combines multiple ways of acknowledging the hard work of your employees and showing them that you value and appreciate their efforts. Do not hesitate to ask your team what they would like as a reward (within a specific budget amount) once a specific target has been reached. The key to making a reward work is to offer what they value.
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So you want your employees to be more productive and creative? You need to let them goof off. Here’s why.
Why I Stopped Doing Annual Employee Reviews
Why wait months to discuss problems that matter now?
When my company Phone2Action launched in 2013, we tried to manage employee performance with annual reviews. It was pointless. Why wait months to discuss problems that matter now? In a start-up, we needed to move faster and calibrate more often than annual reviews permitted.
We scrapped reviews and implemented a performance management system developed by Martin O’Malley, former governor of Maryland. He “disrupted” conventional management techniques well before Agile and Lean Start-up methodologies swept through Silicon Valley.
Today, many companies use “data-driven” management techniques. However, they struggle to find a balance between team and individual accountability, transparency and privacy, and actions and goals. O’Malley’s approach may help you find the sweet spot.
The CitiStat story
When O’Malley become mayor of Baltimore in 1999, the city suffered from chronic absenteeism, excessive overtime and poor response times. He implemented a data-tracking and management approach called CitiStat, inspired by the New York City Police Department’s CompStat crime analytics. Between 1999 and 2007, CitiStat saved Baltimore an estimated $350 million yet the programme cost only $400,000 per year (spent mainly on staff salaries), according to the Center for American Progress.
CitiStat required city departments to track performance metrics unique to their responsibilities. The Department of Transportation, for example, recorded how quickly it filled potholes after being alerted.
The department heads met with the CitiStat team every two weeks to review the data. If it was trending in the wrong direction, the CitiStat team and department head would brainstorm and test a solution. At the next meeting, the data would reveal whether the follow-up actions had made a difference. By 2007, the Department of Transportation was filling 97 percent of potholes within 48 hours of notification.
Other cities took note of O’Malley’s success. Mayor Adrian Fenty introduced a version called CapSTAT in the District of Columbia Government, where I learned the system. We used it to track major initiatives such as school openings.
“CapSTATs” were intense accountability meetings that gathered all the agency heads. When an initiative hit delays, there was no place to hide. The numbers, the colors (green for on track, yellow for delayed and red for behind) and mapping revealed the status of everything.
Having observed the effectiveness of CapSTAT, I wanted to create a version for Phone2Action. We called it ActionSTAT.
Why it’s different
There are different schools of thought in performance management. ActionSTAT addresses three conflicts that arise in most performance evaluation systems.
1. Team v. individual
Traditional employee reviews often happen in isolation and emphasise individual achievements. In contrast, ActionSTAT holds both the team and individual accountable by measuring how people spend their time. The system connects individual actions and goals to departmental and company goals.
This kind of “systems thinking” is hard to achieve in government but comes naturally in technology companies, which have standard measures of success. In software-as-a-service (SaaS), these could include annual recurring revenue (AAR), monthly recurring revenue (MMR) and gross retention.
For example, let’s say we ask each salesperson to make 40 calls per day. The salespeople who perform this “leading action” close more deals than those who don’t. The action appears to work, so we keep doing it. If salespeople made the 40 calls but didn’t close more deals, we’d test other leading actions. Ultimately, we trace the salespeople’s work to AAR and MMR.
2. Public v. private feedback
One of the hardest aspects of performance management is giving and receiving feedback. When a manager gives an employee feedback in private, the company doesn’t gain institutional knowledge. Only two people learn from the experience. When performance management is a team activity, a culture of continuous learning, improvement and transparency can emerge.
Phone2Action holds ActionSTATs every Thursday at 10 a.m. The meetings are open to everyone but focused on one department each week. We start ActionSTAT by reviewing a dashboard that shows the most important metrics of company health. Those include our load time, conversion rate and retention rate.
Next, we look at the department’s lagging indicators (marked green, yellow and red, just like in CapSTAT) followed by its “leading actions.” Often, we look at individual leading actions, too. The data sparks questions, conversation and feedback from across the company.
Over time, a few things happen:
- Everyone in the company gets used to providing and receiving feedback.
- Everyone gets used to discussing performance publicly.
- Everyone sees what people do in other departments and therefore learns how each team member contributes to the company’s goals.
The health metrics never change, but how teams spend their time can. By discussing the leading actions of each department, we set and correct behaviours.
3. Actions v. goals
ActionSTAT distinguishes between how people spend their time (leading actions) and lagging indicators (goals defined by metrics). This is crucial because companies that manage solely by objectives cannot address the behaviors that drive the outcomes.
If we want to lose weight, jumping on the scale everyday won’t change anything. What we eat and how much we exercise will. The same applies to companies. If we measure lagging indicators but not the activities that influence them, we will not identify what works.
Every ActionSTAT becomes a chance to refine leading actions. If we wait one full year to evaluate an employee, we see if she hit the metrics, but we cannot correct behaviours along the way. Performance management is about continuously identifying the actions that produce desirable outcomes.
A thing of the past
Every tech company wants to be “agile,” but traditional employee reviews hinder that culture. Annual reviews exhaust managers and stress out employees who might have spent months working tirelessly – in the wrong direction. Neither the company nor the employee can afford to wait a year for the feedback.
Today, people choose work environments where they can learn continuously and understand how their actions contribute to the company’s success. Annual reviews are thing of the past.
This article was originally posted here on Entrepreneur.com.
Your Employees Are Your Greatest Asset – Manage Them Well
The success of a business depends on many factors, but there are good reasons for arguing that a company’s people must be regarded as a critical lever for success. Consequently, smart business means smart people management.
The notion of the six capitals captures the idea that business does not only require financial capital to deliver returns. It also needs manufacturing, social and relationship, intellectual and human capital —not forgetting the natural capital on which everything depends.
This being said, human capital is rightly regarded as somewhat special for several reasons:
- It has agency. Human capital is the only capital that has a mind of its own. If employees are not happy, or get a better offer, they will simply leave your employ.
- It costs a lot to acquire and maintain. Human capital is expensive to acquire, and must then be trained regularly. It also requires benefits like canteens, medical aid, pension, holidays and so on. It thus represents a cumulative investment, and we all know that investments need to generate returns or they are not worth making.
- It can be a value multiplier. Properly trained and fully engaged employees deliver more than just output. Their contribution also includes building relationships with clients and business partners, collaborating with and motivating colleagues, acting as a repository of institutional memory, and coming up with innovations that save money, improve sales or open up new opportunities. In this way, employees can add tremendous value to your business, and their potential to do so increases the longer they work for you. Alternatively, getting an employee to the point at which he or she is capable of adding significant value is a long and costly journey.
And, of course, your star performers are most at risk of being poached by competitors, who thus stand to benefit from your investment in that person — adding insult to injury!
So, if your employees are such a valuable asset, how do you maximise their contribution?
Star performers are always innately motivated people. To take advantage of that, you need to recognise that highly motivated people need affirmation that their contribution is valued, and to be doing something that is worthwhile. Managers thus need to provide positive feedback and acknowledge achievement.
And take a leaf out of Google’s book: it mandates that employees spend at least 20% of their time doing “what they believe will benefit Google most”. Such projects typically yield huge dividends for the company, and ensure that employees remain engaged.
Give them the bigger picture
More generally, research shows that employees find it extremely demotivating not to understand the big picture into which their work fits and not to have any control over their work schedules. Other big employee turnoffs include intrusive or punitive rules, such as overzealous attendance policies or appropriating employees’ frequent flyer miles. Rules like these work against the kind of collaborative atmosphere that nourishes high performers.
Collaboration is also hampered enormously by an office atmosphere that is characterised by conflict with other employees and, of course, any kind of prejudice.
Treat employees fairly based on performance
Companies should also think carefully about how they treat employees. It might seem fair to treat everybody equally, but in fact that ends up discriminating against those that work harder and smarter. The flip side of the coin is that poor performers suffer no consequences – even though it is their colleagues who have to pick up the slack.
These are general points, but employees are individuals whose preferences are likely to change as they get older. Smart employers who understand the power of an engaged and experienced workforce will put a mechanism in place for asking employees regularly how they want to work and what they like or dislike about their current work conditions.
For example, somebody who is motivated mostly by good benefits might, once his or her children are grown up, become more interested in working on projects that have a specific focus.
Some food for thought in parting, everything one reads about employee motivation mentions fun. Avoiding the pitfalls mentioned above will go a long way towards creating a pleasant and productive workplace that people want to visit, but the odd bit of fun is also necessary. Everybody has his or her own idea of what constitutes fun; again, and this should be your watchword, ask your employees.
MiWay is an Authorised Financial Services Provider (Licence no: 33970).
How To Plan Effective On-The-Job Training Programmes That Work
On-the-job training doesn’t have to be the hassle you make it out to be.
A company which takes pride in their employees’ professional development and provides them with the right training to expand on their roles, will quickly reap the benefits through loyal, productive employees. There is no employee who doesn’t want to learn or progress in their career. And, unfortunately, the reality is that when employees don’t have access to these opportunities, they are more likely to move on.
On-the-job training doesn’t have to be the hassle you make it out to be. What it is, is an investment.
Understanding the basics of how to plan and conduct a training course is the first step to understanding the importance behind this initiative. Not only is it beneficial to your employees, but also to the company.
Understanding the importance of on-the-job training
On-the-job skills development that includes SETA training will not only benefit your employees but it will provide your business with new opportunities for years to come. Due to economic and financial challenges in South Africa, it is important for companies to invest in programmes to keep up with competition, increase their lifespan, and keep their employees happy.
When employees feel motivated, they perform well. For your company to invest in skills training, it means the following:
According to this article, positive emotions appear to invigorate human beings. When employees feel inspired, they become more enthusiastic and loyal to your company. And, in essence, good employee commitment results in a boost in company profits.
Investing in your employees means that you are promoting the need for skilled employees. An ‘always learning’ mentality contributes to a positive attitude which will take you to even bigger heights. When employees are always bettering themselves, there is no reason not to promote them and keep them satisfied during their stay at your company.
You will attract new talent
This is a no-brainer. Millennials, who are currently flooding the job market, are the ones who want to keep learning and keep changing the way businesses operate. If your company supports professional development, you will find that many people will be attracted to you simply because of that. This type of company culture shows that you want to grow people and you are willing to spend the money on building a better team.
In today’s working world, people’s job roles do not determine any other responsibilities that are required of you. Gone are the days where you weren’t able to do something because of the lack of training as today, everyone needs to be able to assist where need be. Companies need to create a flexible workforce that is capable of many things.
Issues that enhance the need for training
For business owners looking to implement a new training programme, it might be best to consult with an external training organisation beforehand. They will be able to come in, sit with your staff and successfully execute a programme that will play out according to specific employee acts and skills development legislation.
There are a number of reasons why employees need to be trained, including:
Lack of communication
Internal communication is one of the biggest barriers among employees and management. When things aren’t structured or run systematically, employees cannot do their jobs, and they’re not motivated to do their jobs properly when they don’t have the skills to do so. Not to mention, a lack of communication is demotivating for employees as they’re not kept in the loop of things that are happening around them. When people know what purpose they play in the bigger picture, they’ll be able to feel the value they’re adding.
Not up to date with the latest technology
Besides the skills you need to deliver a task, employees need to be up to scratch on the latest technology. Not only does this frustrate business owners, thinking employees cannot do the job properly, but it limits employees completely. Upgrades and modern technology make on-the-job training more beneficial.
Understanding your position
When employees have a proper job description, they feel more secure in their positions. It’s important for companies to be clear on employee tasks, not only to plan around their skills but to also set boundaries on tasks so that employees are not overworked.
For businesses which want to be a cut above the rest, they will understand the importance of skills development. Industries are always changing, providing an even bigger purpose for training. With the constant change in technology and trends, there will always be a reason for companies to train their staff. However, understanding the ‘why’ and then implementing the ‘how’ is always the challenge.
Here are a few tips to planning effective on-the-job training programmes that actually work:
- Start by assessing each employee and their roles. Once you’ve analysed their positions, jot down the skills you think your employees need to be able to do their jobs better.
- Wrap your head around the type of programme you’re going to implement. Once you’ve created a strategy around this, brainstorm the type of methods, resources and materials you’ll need. Try to stay away from self-help work, unless there is something to achieve at the end.
- Employees will need to understand the importance behind these programmes, therefore when implemented by an external company, they cannot be avoided. If it is set up by an in-house management team, business owners need to ensure that the implementation is strong enough to keep employees engaged, enthusiastic and committed to learning.
- Once you have completed a programme, make it a priority to include follow up meetings with staff to evaluate the outcome of the training. Usually, when employees can get involved in practising what they’ve learned, it guarantees better and more successful after-training results.
Forget the challenge and look at the benefits that skills training will provide you, your business and your employees. Skills development and training goes beyond using just the basic skills to perform a task and be a better employee. It’s about building a better future for your company and your employees.
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