Rewards in companies and organizations can have a twisted effect on employees behavior. We (you and I) will always use the rules to our own benefits in the limit of our good and bad consciousness. Companies are using rewards to enforce strategies but sometimes the ripple effect are not thought through. The business vision, mission or values are not respected because employees take advantage of a gap, of a forgotten aspect of the reward. Rewards exist in different forms:
What are some negative consequences of a reward system?
- lack of cooperation between employees
- competition that pushes disloyal behavior
- individual self-interest push them to take advantage of a failure (gap) in the system
- internal politics are exacerbated
- employees are stealing (money, goods…) from the company
- employees are inactive
How to build an effective reward strategy?
- What is your company vision?
- What do you want to achieve?
- What are your values?
- What do you want to achieve with a reward strategy?
- What rewards can you create?
- In the worst case scenario what negative behavior would engender your reward strategy?
The most important question is:
DO YOU REALLY NEED REWARD?