Culture Of Performance

'We have around 1,000 employees and currently run a KPI-based R&R program. It was fairly successful when we first launched it but we think we should be getting a much stronger return now, 12 months down the track. How can we improve the performance of our program and create a 'culture of performance' amongst our employees?'

Response:

When seeking to improve the performance of reward and recognition (R&R) programs it is important to consider whether the program properly motivates employees, whether employees are engaged with the program and whether the program is administered effectively.

Employee Motivation

KPI-based R&R programs focus employees on business critical outcomes. But they only address part of the story. Outcomes are not always black & white.

Take the example of an employee who tries hard to achieve a challenging KPI. They exhibit all the behaviours and attitudes that their employer would hope for. Despite their very best efforts, the employee just fails to reach target. Their effort is not rewarded.

Consider the motivational impact of this scenario. The employee is de-motivated because, despite their efforts, they have been deemed to have “failed”. Furthermore, their positive behaviours have not been reinforced.

That’s why it’s important to also reward the behaviours that lead to an outcome.

Outstanding results should be rewarded … and rewarded well. Equally, it should be recognised that there will always be variation in the people’s performance against KPIs. Hence, there is a need to continually encourage people to stay focused on the behaviours that will deliver results over time … this lays the groundwork for a “culture of performance”.

Promoting behaviours proven to deliver outcomes will inevitably lead to better results because we are reinforcing how to achieve success.

Making “behaviour rewards” small but delivering them at a high frequency puts those desired behaviours at the front of mind.

Employee Engagement

Employee engagement with a program can be affected by the perceived value of the reward and the type of reward offered. Budgets should enable participants to redeem a reward at least once a year and this reward needs to be of a value that engages employees. That doesn’t mean high monetary value though. The reward needs to appeal to individual’s preferences. Offering a broad range of rewards will allow employees to find something that engages them.

The value of rewards and the decision-making around rewards both need to be seen as fair and equitable also.

Furthermore, recognition and rewards must be received in a timely manner to have a motivational effect. Participants need to feel rewarded for their hard work before they’re going to be motivated to repeat it.

Finally, R&R programs are often thought of as “set and forget”. This is not true. Programs must be continually “sold” to employees. They need to be reminded of the program and its objectives. Emails, posters and public recognition events are effective to keep a program front of mind and remind participants why it is valuable.

Program Administration

Simplifying administration enables program owners to focus more on the strategic side of a program – for example, the ongoing communication, program evaluation, additional promotions, and so forth.

Specialist R&R firms can provide expert solutions to reduce the burden of program administration, rewards sourcing & delivery … as well as designing programs to address the kinds of issues described herein and maximize the motivational affect of employee rewards.

For more information about the Accumulate employee recognition rewards programs and software, sales & channel incentive programs or customer loyalty programs call 1300 733 725 or email info@accumulate.com.au