Where should you focus your rewards and recognition program? What behaviors should be targeted when deciding on your incentive strategy? What should you recognize?
Great questions - and the ones I get most often from my clients.
And here's my answer.
Recognize what you don't want to change. Create an incentive around things you think will change.
I'm sure you're scratching your head right now. Let me explain.
First of all let's define what I mean by incentive and recognition. When I say "incentive" I mean non-cash, non-compensation based rewards. If you've read any posts on this blog you know I focus on the world of non-compensation motivation and influence. So - incentives are non-compensation based.
When I say "recognition" I mean public notification and validation of specific efforts relative to a standard of performance. I don't just mean outcomes or results - I also mean behaviors that are valued. In some cases recognition may include a "reward" but the root of recognition is the public validation of the behavior.
So - what do I mean by recognize what you don't want to change and create incentives for things you think will change?
Recognition is about long standing, enduring qualities.
Create a recognition program in order to promote the core values of the organization, the things you want to be known for internally and externally. Think Apple and innovation, think ebay and customer empowerment, think BMW and engineering - you get the idea.
Recognition should be able to stand the test of time. The value of the public validation for specific behaviors should not become devalued over time. If innovation is a core belief and value it should be valuable 10 years hence. Understand however, that over time the core values and beliefs might evolve, but they shouldn't be discontinuous. Values, beliefs and the company "brand" are things that create and sustain a culture. Culture doesn't change quickly. Culture doesn't bow to the "latest and greatest." When culture changes quickly it is simple a a series of cults.
Incentives are about short term focus.
One of the main benefits of non-compensation incentives is that you have the flexibility to start and stop them as needed without affecting your audiences income or life style. This provides a company with the ability to change and adapt as the market place changes. With non-compensation based incentives you have the ability to focus attention on one objective this quarter and another next - without disrupting the income expectations of our target audience. Therefore, when thinking about incentives - look for things that need attention now - and may not need attention in the future. Look for changes in the market that you believe are "blips" or short-term needs. Need a sales spike - run an incentive. Need to launch a new product - run an incentive. Need to reinforce your companies focus on quality products - see previous paragraph.
Think of bowling. The gutters are the boundaries. How I roll each ball depends on the pins in front of me. Sometimes I bowl to the left, sometimes the right. In business there are more than ten pins to consider - so your alley may be very wide - but there are limits.
Recognition sets the limits, incentives drive the action within those limits.
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