A company-wide reward program

The sixth tool in the management system is a company-wide reward program. We like to see a direct link between the company goals and the successful efforts of everyone in the company in achieving those goals. When the goals are achieved, we like to see everyone receive a reward.

We use the term reward purposely, because we want everyone to see a direct link between the attainment of a goal and some form of reward. Although there is controversy as to whether money provides an incentive to all employees (it certainly does to many), and although “bonuses” are often based upon discretionary criteria (“If we have a good year, trust me, I’ll take care of you”), a reward provides clear and tangible evidence of success (“If we make our goals, every employee will get the following…”).

The reward program is designed to accomplish several objectives. All are critical to the success of the firm in attaining its goals.

First, it is designed to reward the entire team for their accomplishments in achieving your company goals. Because you set those goals with a purpose, you convey to your employees that the goals are important. When the team accomplishes the goals, they have all achieved something important—something that deserves a reward.

Second, it is designed to link directly with your “plan versus actual” exercise. You monitor and manage the performance of the company in order to ensure that you will attain the goals. By having clear unambiguous goals, and by monitoring results monthly, at minimum, everyone will be aware of the organization’s progress toward achieving the goals. If the company lags in performance, everyone will be expected to help create action steps to get back on track.

Third, it “keeps everyone’s head in the game.” By rewarding achievements on a relatively frequent schedule (such as, quarterly), you create a score-keeping mentality—a culture that values frequent monitoring and regular links between achievement and rewards. This, in turn, invests the program with importance and immediacy.

Fourth, in our experience, people like to have goals—they want to know what they should do to achieve success. They also want tools and coaching on how to attain the goals, and they simply appreciate being rewarded when they do.