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What will be the difference between your success and that of the opposition?
The Coach
The Consultant
What behaviours, attitudes and performance does your culture produce?
Does your team take responsibility for its own actions?
The Presenter
Do you want more than just manufactured talk and psychological babble?
Your audience needs information that will sink in and make a lasting impression.
Are You Paying To Much For Performance
Friday 20th November 2009
This months question is:
I have done my fair share of research on the subject of incentives. And still I am not sure exactly what is right and what is not. Can you give me some ideas from your perspective?
This is a very real and relevant question as right now there is a lot of discussion and debate on the area of incentives and if they work and why?
I am going to take a different approach to it. And no, I am not ducking the debate, but just trying to take a more proactive approach by outlining some areas I think you need to consider as you approach the subject of incentives.
1. Need to make sure whatever you are incentivising is something they have control over
History is peppered with stories where the best laid plans and incentives have gone south and done so in the blink of an eye. This situation usually occurs when those the incentive is intended to prompt into some form of increased or new action, realise that many of the aspects that will determine if they reach the outcome that will deliver the incentive is out of their control and therefore, the chances of receiving the incentive is somewhere between slim and none. And slim just left town....
There is nothing as de-motivating as failing to achieve a goal or outcome for reasons beyond your control.
Considerations include:
Goals and incentives based on outcomes alone are extremely vulnerable to failure because of things beyond the control of those that are pursuing them. It is important to know when and where to incentivise activity and when and where to incentivise achievement
No control => No motivation = No achievement.
2. Need to make sure the incentive keeps their focus on the primary objective
When you are setting up your incentive program make sure the action or the outcome you are incentivising doesn't need or create a corresponding action or focus that takes them away from their primary purpose or objective.
Too many times I have see people so easily distracted from what they should be doing by getting involved in things that they think will bring a better or faster outcome. Keeping someone focused at the best of times is not always easy, so make sure what you are asking, and how you are directing, keeps them focussed and committed to their primary purpose.
3. Make sure the incentive compliments the standards and culture of those involved, individual, team and organisation
One of the first considerations when devising your incentive program is to ensure that the incentive or the actions and behaviours that it creates, doesn't conflict with the culture, environment, values and standards of those involved and of the team itself.
The incentives are there to provide cues towards direction, but not to create direction itself. The incentives should be used to highlight what is valued. What is expected. And to reference what the team or individual is about. But what is valued and expected should have been presented and communicated in more ways than just through an incentive.
4. Make sure the incentive isn't just paying them for doing what they should be doing already
No sense creating an incentive program based around the type and level of activity that they are already paid to do. Otherwise all you have realistically done is give them a pay rise. It is important that either you or the people you are directing don't confuse a pay rise with an incentive.
If it is a normal level of activity and achievement that needs to be restored, then I would suggest an alternative approach to instigating an incentive plan.
Now without getting into the intricacies of approach and implementation, it is very important that you don't just see the concept of incentives as something that will get them to do what needs to be done.
5. Make sure the incentive helps utilise the combined skills of everyone
The incentive needs to help the concept and process of having people work together and not in opposition. The concept of divide and conquer within a team might bring a result, but it will never bring the best result.
Once again, way too often the incentive schemes I see are set up with the best of intentions, but unfortunately at the same time, it just encourages the individual to focus on them-self. Which, I agree at times has it's advantages. But you must also consider the situations when and where the individual does things in isolation and the advantages and disadvantages of it. Basically, when an individual only focusses in on what they want to achieve or what they need, the reality is that unfortunately everyone around them suffers because of this.
Individual wins x team looses = Everyone looses.
Think about the parent that is going to pay their child a dollar for every goal they score at the weekend sporting event. Child comes home with $5.00, team comes home with a loss and everyone wanting to get little Johnny.
On another level and to highlight this point, I once worked in an organisation where the HR Manager was going to be paid a bonus if he could reduce the wage bill of the staff, mine included.
6. Know that in some cases there are probably things more important than an incentive
Respect, communication, trust, sense of belonging, sense of worth, valued contribution. What really matters to people is what makes them feel good about what they do, being successful at what they do and being respected for how they do it.
Remember, regardless of the worth of the incentive sometimes a simple - well done' will have far more significance and worth than any incentive, financial or otherwise.
7. Make sure incentives are not used to replace the element of leadership
There are many ways that incentives can be utilised. However one area they should not be used for is to change approach, behaviour and actions that should be dealt directly with by the leader.
If someone is white-anting the team. If someone is letting the team down. If someone isn't fulfilling their role.
Don't provide financial type incentive to change.
Provide guidance, purpose, responsibility and perspective as to what happens if they don't do what others are relying on them to do.
Yes, I know people do things for their own reasons. But in saying that, if all you are doing is continually paying someone to do what is required, then all you have hired is a mercenary. And is this the attitude and approach you really want within your team?
8. Make sure everyone knows everything
It is a paramount that what you are incentivising can be easily accurately and transparently measured and analysed and everyone knows the process going in.
Clarity brings with it all sorts of advantages and in a case, like this clarity will remove a lot of uncertainty and post game arguments.
What I mean here is that if someone in good faith believes they are pursuing goal A to receive incentive B and when they reach the top you go - Oh no, I said you have to reach goal A2 not goal A and even if you do you don't get Incentive B you would get incentive D'.
Regardless of who said what to begin with the relationship is shot. Why? The basic element of trust has been lost. And no amount or type of incentive will make up for that.
9. Horses for courses
Make sure the incentive resonates and engages the people that are affected by it. Understand that one persons incentive is another person de-motivator. You cannot go with the one size fits all mentality. Differentiate by considering a number of different parameters age, experience, sex etc.
And most of all understand that the incentive doesn't have to all be about money.
There are many different things that go into creating inspiration, change of action, behaviour and result.
Know the person or team you are trying to change and know what are the things that will mean something to them. Then put that in front of them in a fair and reasonable manner and watch what will happen. Don't assume the incentive will change things way above what they are meant to. Know the change you are trying to stimulate and make the incentive appropriate to the desired level of change or improvement.
10. Make sure what you are incentivising is what you really want
Another important consideration is to make sure that you don't talk one thing and incentivise another. One of the most frequent examples of this is where an organisation or its leaders constantly talk about and direct about how important teamwork is. How the future is dependent upon everyone working together. That the goals will only be reached by everyone fulfilling their role and at the same time helping others to fulfill and accomplish theirs.
Great idea, strong purpose, relevant and decisive direction.
But then you ask the million dollar question..... How does your recognition and rewards scheme function?
The usual answer......
We incentivise individual performance.
The Journey Continues!
I have done my fair share of research on the subject of incentives. And still I am not sure exactly what is right and what is not. Can you give me some ideas from your perspective?
This is a very real and relevant question as right now there is a lot of discussion and debate on the area of incentives and if they work and why?
I am going to take a different approach to it. And no, I am not ducking the debate, but just trying to take a more proactive approach by outlining some areas I think you need to consider as you approach the subject of incentives.
1. Need to make sure whatever you are incentivising is something they have control over
History is peppered with stories where the best laid plans and incentives have gone south and done so in the blink of an eye. This situation usually occurs when those the incentive is intended to prompt into some form of increased or new action, realise that many of the aspects that will determine if they reach the outcome that will deliver the incentive is out of their control and therefore, the chances of receiving the incentive is somewhere between slim and none. And slim just left town....
There is nothing as de-motivating as failing to achieve a goal or outcome for reasons beyond your control.
Considerations include:
- Scheduling conflicts
- Third party reliance
- Weather considerations
- External influences
Goals and incentives based on outcomes alone are extremely vulnerable to failure because of things beyond the control of those that are pursuing them. It is important to know when and where to incentivise activity and when and where to incentivise achievement
No control => No motivation = No achievement.
2. Need to make sure the incentive keeps their focus on the primary objective
When you are setting up your incentive program make sure the action or the outcome you are incentivising doesn't need or create a corresponding action or focus that takes them away from their primary purpose or objective.
Too many times I have see people so easily distracted from what they should be doing by getting involved in things that they think will bring a better or faster outcome. Keeping someone focused at the best of times is not always easy, so make sure what you are asking, and how you are directing, keeps them focussed and committed to their primary purpose.
3. Make sure the incentive compliments the standards and culture of those involved, individual, team and organisation
One of the first considerations when devising your incentive program is to ensure that the incentive or the actions and behaviours that it creates, doesn't conflict with the culture, environment, values and standards of those involved and of the team itself.
The incentives are there to provide cues towards direction, but not to create direction itself. The incentives should be used to highlight what is valued. What is expected. And to reference what the team or individual is about. But what is valued and expected should have been presented and communicated in more ways than just through an incentive.
4. Make sure the incentive isn't just paying them for doing what they should be doing already
No sense creating an incentive program based around the type and level of activity that they are already paid to do. Otherwise all you have realistically done is give them a pay rise. It is important that either you or the people you are directing don't confuse a pay rise with an incentive.
If it is a normal level of activity and achievement that needs to be restored, then I would suggest an alternative approach to instigating an incentive plan.
Now without getting into the intricacies of approach and implementation, it is very important that you don't just see the concept of incentives as something that will get them to do what needs to be done.
5. Make sure the incentive helps utilise the combined skills of everyone
The incentive needs to help the concept and process of having people work together and not in opposition. The concept of divide and conquer within a team might bring a result, but it will never bring the best result.
Once again, way too often the incentive schemes I see are set up with the best of intentions, but unfortunately at the same time, it just encourages the individual to focus on them-self. Which, I agree at times has it's advantages. But you must also consider the situations when and where the individual does things in isolation and the advantages and disadvantages of it. Basically, when an individual only focusses in on what they want to achieve or what they need, the reality is that unfortunately everyone around them suffers because of this.
Individual wins x team looses = Everyone looses.
Think about the parent that is going to pay their child a dollar for every goal they score at the weekend sporting event. Child comes home with $5.00, team comes home with a loss and everyone wanting to get little Johnny.
On another level and to highlight this point, I once worked in an organisation where the HR Manager was going to be paid a bonus if he could reduce the wage bill of the staff, mine included.
6. Know that in some cases there are probably things more important than an incentive
Respect, communication, trust, sense of belonging, sense of worth, valued contribution. What really matters to people is what makes them feel good about what they do, being successful at what they do and being respected for how they do it.
Remember, regardless of the worth of the incentive sometimes a simple - well done' will have far more significance and worth than any incentive, financial or otherwise.
7. Make sure incentives are not used to replace the element of leadership
There are many ways that incentives can be utilised. However one area they should not be used for is to change approach, behaviour and actions that should be dealt directly with by the leader.
If someone is white-anting the team. If someone is letting the team down. If someone isn't fulfilling their role.
Don't provide financial type incentive to change.
Provide guidance, purpose, responsibility and perspective as to what happens if they don't do what others are relying on them to do.
Yes, I know people do things for their own reasons. But in saying that, if all you are doing is continually paying someone to do what is required, then all you have hired is a mercenary. And is this the attitude and approach you really want within your team?
8. Make sure everyone knows everything
It is a paramount that what you are incentivising can be easily accurately and transparently measured and analysed and everyone knows the process going in.
Clarity brings with it all sorts of advantages and in a case, like this clarity will remove a lot of uncertainty and post game arguments.
What I mean here is that if someone in good faith believes they are pursuing goal A to receive incentive B and when they reach the top you go - Oh no, I said you have to reach goal A2 not goal A and even if you do you don't get Incentive B you would get incentive D'.
Regardless of who said what to begin with the relationship is shot. Why? The basic element of trust has been lost. And no amount or type of incentive will make up for that.
9. Horses for courses
Make sure the incentive resonates and engages the people that are affected by it. Understand that one persons incentive is another person de-motivator. You cannot go with the one size fits all mentality. Differentiate by considering a number of different parameters age, experience, sex etc.
And most of all understand that the incentive doesn't have to all be about money.
There are many different things that go into creating inspiration, change of action, behaviour and result.
Know the person or team you are trying to change and know what are the things that will mean something to them. Then put that in front of them in a fair and reasonable manner and watch what will happen. Don't assume the incentive will change things way above what they are meant to. Know the change you are trying to stimulate and make the incentive appropriate to the desired level of change or improvement.
10. Make sure what you are incentivising is what you really want
Another important consideration is to make sure that you don't talk one thing and incentivise another. One of the most frequent examples of this is where an organisation or its leaders constantly talk about and direct about how important teamwork is. How the future is dependent upon everyone working together. That the goals will only be reached by everyone fulfilling their role and at the same time helping others to fulfill and accomplish theirs.
Great idea, strong purpose, relevant and decisive direction.
But then you ask the million dollar question..... How does your recognition and rewards scheme function?
The usual answer......
We incentivise individual performance.
The Journey Continues!
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