The Consultants' Consultant: Article Managing Performance

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Five tips and some leads on rewards and recognition Rewarding people for good performance has its own rewards. Sometimes a simple thank you makes people want to work even harder. The lack of thanks has in fact caused more than one person to leave an organisation. Rewarding and recognising good behaviour is very simple. Doing it saves time and spreads joy. Forgetting to do it foments unrest. Here are some tips: Remember the principles of performance management Set up a system of rewards Make rewards meaningful – not expensive Recognise based on their personality Pay attention to equity This article concludes with some links you can follow to learn more.
Remember the principles of managing performance	Take into account the principles of managing performacne Give consistent feedback - both good and bad Remember they're individuals - find out what motivates them Make any correction you give do-able Monitor how your technique works Use good feedback too. Each principle mentioned in the performance management article applies equally to rewards and recognition – since you’re rewarding performance. Then take into account these 4 other principals.
Set up a system of rewards	Make sure when you reward that you pay attention to the entire system of rewards. So, rewarding individuals for sales can causes teams to compete internally. Rewarding one person for finishing quickly may mean they refuse to help others. Reward people for a single volume, like sales through the door, and they may neglect the KPI of % of orders fulfilled. Reward teams if you want to build teams. Reward individuals if you want to build individuality. Make sure you track all aspects of behaviour before rewarding. And review the system for unwanted side-effects.
Make rewards meaningful – not expensive	Remember that rewards can be tangible and intangible. Getting off 15 minutes early. An employee of the month photo in the foyer. A movie pass. Lunch with the CEO. A conference. Their name on an honour list. Find out what people think is great. Vary rewards for maximum effect.
Recognise based on their personality	For some people quiet recognition is better. If you have an extremely introverted staff member, it could be the worst thing on the planet to mention their name in an open meeting, and have others applaud them. Especially if you ask them to stand in front of a group. For more extroverted staff, this is what makes it real. Consider who you’re rewarding (and the generic personality of your team), rather than what you would like.
Pay attention to equity	When you’re building your rewards system, pay attention to equity. If the CEO’s reward is a trip to the Bahamas, but the call centre staff get a Mars Bar, this can be evidence of inequity. You can have differing rewards, but you need to explain why. A sales person who works longer hours on the road and is studying an MBA at night can be seen to “deserve” more than a phone sales person who works their standard hours.
Want to know more	If you’d like to read more about performance management, try these books. On rewards systems, consider Stephen Covey’s 7 Habits For Highly Effective People (especially the last 3 on interdependence). Working Manager also summarises four classic motivation theories (Try them individually – Henry Mintzberg, Abraham Maslow, Frederick Hertzberg and David McLelland). (registration required for working manager). Also check out James Surowiecki The Wisdom of Crowds, Chapter 6, section 2 on when people accept inequities.

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