6.2. CHANGING THE REWARD SYSTEM TO SUPPORT TECHNICAL CAREERS

Thompson and Dalton (1976) suggest that there are a number of things organizations can do to improve the motivation of technical personnel. For example, they can pay for performance and not position. In other words, people who are doing first-rate work that is important to the organization should receive the same pay, regardless of their title or position level. But there are objections to this idea. The implication of such change is that a person whose performance deteriorates gets less pay, and this is something that many employees find very difficult to accept.

Another approach is to increase the visibility of those who are extremely effective. Most organizations do this by promotion, but usually that means promotion to management and many employees want to continue their technical activities rather than become members of management. Organizations have to find ways to provide recognition that do not require promoting the employee. There are a number of ways to do this. One is to structure the organization with a triple hierarchy. Other activities that provide recognition may be as simple as having the successful performer make presentations for the top management, inviting them to meet important customers, or giving them nonmonetary honors and awards. These honors and awards, of course, have to be meaningful to recipients and reflect genuine recognition to be effective.

At one research lab a researcher is annually selected by a vigorous peer review process to be the "Researcher of the Year." The Researcher of the Year is given a reserved parking space for the year, and he or she is invited to all senior management conferences. The Researcher of the Year serves on the peer review panel for the selection of the next year's honoree.

Another way is to equalize the status symbols that are used in managerial positions for those professionals who are exceptionally effective. For example, there is no reason why the office of a researcher should be smaller than the office of a manager. Another possibility is to increase office privacy or to provide attractive furniture for the researcher.

Commenting on motivating creative employees, Cuadron (1994) suggests that scientists and inventors are not always attracted by traditional incentives like titles and promotion. They seek opportunities to create, the freedom to innovate, and recognition for their scientific breakthroughs. One of the most tangible recognitions, of course, is the opportunity to participate in the commercial success of the products of their innovations. By sharing the profits with key contributors, R&D organizations can provide incentives for innovation and successful product commercialization (Cuadron, 1994).

As mentioned earlier, different mechanisms should be used to reward individuals during the various periods of their career (see Hall and Mansfield, 1975). For the young engineer or scientist, during the first period of their career, the most important reward is self-fulfillment and growth. Satisfaction and the sense of accomplishment that goes with it are maximized when such a person feels that the job provides such opportunities. For the person in mid-career, organizational recognition and esteem derived from the organization are the most important elements of motivation. For the person in late career, security and a good system of health and pension benefits, as well as organizational recognition, are important rewards. Such persons should have the sense that they have contributed to the organization and that the organization is grateful for the contributions they have made.