Few things bother me as much as a lousy incentive structure. I can't stand seeing people rewarded for bad behavior or punished for doing what's right.
Poor incentive structures ruin economies, governments, businesses, families, and personal welfare. Misguided incentives indicate a lack of core values or straying away from healthy principles.
Pardon the soapbox moment, but this is fundamental to my worldview. Get your values right, then build healthy incentive structures around them. That's how humans thrive.
And that's our overarching aim at HireSmart. All action within the company splinters off our core values. Part of my job as CEO is educating my team about the core values and then discussing how we implement them in our daily work.
Beyond Words: Turning Your Company's Core Values into Daily Actions
Are we genuinely acting in service to others, being respectful, working as a team, building relationships, upholding the highest ethics, being available for help, and being mindful of everyone we encounter?
No one can join my team unless they agree to these principles, and no one can stay on the team if they violate them.
Would You Like to Help Your Staff Improve and Succeed?
But my team needs to shine and not feel constricted. I want good deeds rewarded and everyone striving to go far beyond the minimum requirements.
When I think of "strategic staffing," incentive structures are near the top of the list. Every staff member should be clear on their expectations. Employees should also understand why some get rewards and some don't because they know the criteria for earning extra. They should recognize the clear incentive structure established for them.
Here are some tips on establishing a healthy incentive structure for your organization:
- Set Clear, Achievable Goals: Before diving into incentives, it's crucial to define success. Collaborate with your team to set clear, measurable, and achievable goals. Implement three to five "key performance indicators" (KPIs) for each position so employees and employers have a reference point for all performance discussions.
- Embrace a Multifaceted Approach: While financial rewards are powerful, they are not the only motivator. Implement a variety of incentives, including non-monetary ones like flex hours 1 day a week, additional paid time off, professional development opportunities, and a point system to be turned in for gifts.
- Develop a Culture of Recognition: Regularly acknowledge and celebrate achievements, no matter how small. Public recognition in meetings, personalized thank-you notes, and shout-outs in company newsletters are simple yet effective ways to make employees feel valued. A culture of recognition not only boosts morale but also reinforces desired behaviors and outcomes.
- Promote Team-Based Rewards: This one is particularly significant to me. Encourage collaboration by setting team-based goals and incentives. This builds a sense of unity and shared purpose, reducing counterproductive competition among employees. When the team succeeds, everyone benefits, reinforcing the idea that collective effort yields collective rewards.
More Tips on Motivating Employees
- Establish a Continuous Feedback Loop: Feedback needs to be frequent, constructive, and a two-way street. Employees should know where they stand and how they can improve. Ask for employee input on company processes and the incentive structure itself. This openness enhances performance and gives employees a sense of ownership and involvement.
- Invest in Personal and Professional Growth: Set an annual budget for training, mentorship programs, and career advancement opportunities. Employees who feel supported in their personal and professional development will be more engaged, loyal, and productive.
There is No "Box" When Hiring in Today's World
Isn't it nice to hear encouragement? Be your team's greatest cheerleader. Let employees hear how excited you are when they show creativity, resilience, curiosity, and a drive to improve, not just individually but also as a team member. Be especially praiseworthy when you see an employee encouraging another employee. That's the spirit you want to foster — shared excitement for each other, not just the self.
When those relationships are strong, a deeper incentive structure is at play. It's called, "Hey, this is us!" When we unite as a team, we want the best for each other, and there's so much we can accomplish with that mindset.
I can't think of much that makes me happier than that. Can you?
I'd love to share tips and strategies if you want to discuss getting your team to that place. Click here to set up a time that suits your schedule.