workers compensation
Keys to compensate your team for results
Improve the effectiveness of your incentives, with these tips
Dolors Casaseca / Human resources area
/ December 2018
We are all interested in staff being motivated and aligned with the company's strategy, but if you really want to achieve lasting commitment from the entire team involved, it is very important to implement a compensation system.
In the first place, the degree of satisfaction of the personnel with the organization has to be known, secondly, objectives must be established that take into account the needs and expectations of the personnel involved, and finally the results must be linked to a bonus system. These incentives will not always be monetary, they can be vacation days, discount bonuses, recognition and privileges.
However you plan to incentivize your staff, here are a few things to consider:
Financing Mechanism
Incentives are intended to reward behavior that increases the organization's performance. Therefore, the set of incentives must be financed by meeting the financial objectives. Employees need to understand that money flows into the compensation system only if the company is growing successfully. Organizations typically define revenue and net income goals. When the organization reaches them, the money begins to fill the bonus pool.
payment frequency
Paying a quarterly premium is much more powerful than paying an annual premium. It's hard to stay motivated to earn an annual bonus that's already out of reach due to a poor quarter. Organizations that choose to pay a quarterly premium may not pay much, but their employees may be more motivated to see a tangible benefit each quarter and to try harder.
Alignment
A manager must ensure that their employees have goals or objectives that directly support the strategic objectives of the organization. The easiest way to do this is to link all employees to a strategy map or Balanced Scorecard. A few short-term actions, with owners and deadlines, will ensure that everyone is working to execute the strategy.
Participants
Variable compensation should not apply only to commercial staff. Many organizations are successful by putting an entire team or department into an incentive program that has a portion of the bonus tied to team performance. This will ensure that misbehavior is discovered quickly and that team play is encouraged.
Rules
It is important to establish rules for compensation systems and not tolerate behavior that could negatively affect the client or the business. These types of rules allow the compensation plan to be invalidated or changed if improper behavior occurs within the organization.
In short, a compensation or incentive system should help implement the strategy in the organization and when that happens, companies meet their objectives because the staff is motivated, their processes are more efficient, customer satisfaction increases and financial results flow. ensuring continuity and success.
Check with our work area
any questions to implement your Incentive System and motivate your team.
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