I have argued for many years there are not enough rewards and incentives in the workplace. I am not referring exclusively about monetary compensation. I am also referencing other forms of rewards and incentives.
What gets noticed, recognized, and acted upon tells us what is valued and who will succeed in a workplace.
What Rewards and Incentives Say About a Workplace
Who contributed to the bottom line: Particularly in publicly-held companies, this can stand out as the most valuable and recognized. Don’t get me wrong, adding to the coffers is a major part of many peoples’ job description. The challenge here is many employees are often quietly behind success, their contributions are difficult to calculate. Does the tech person who kept the trading software up-to-date and reliable receive accolades? Probably not.
Another risk when dollars are the be-all and end-all of the game is it encourages dishonesty in some. Did certain bank employees sell the bad mortgage, open unwanted credit accounts, or recommend bad investments because they wanted to hurt people? I doubt it. They wanted and were pushed to enhance the bottom line. This “results at any cost” is toxic to an organization. It sends the message that almost anything will be tolerated if we don’t get caught and it sweetens the pot. It tempts the vulnerable and puts the honest in a difficult situation.
Healthy cultures have hard and soft goals. They have a mechanism for rewards and incentives that applauds workers at all levels, admitting everyone is contributing to the bottom line.
Who gets promoted: In a well-functioning organization people are given new titles, more responsibility, and increased pay because they have earned it. The system is fair, transparent, and is based on measurable facts over a period of time. Simply said — the person is deserving.
When promotions don’t make sense, seem politically or personally motivated, or ignore the more deserving, the message is, “This is not a level playing field. For some of you, the possibilities are finite.” This type of culture weakens motivation, sends many to look outside the department or organization, and builds a negative reputation for the company.
Who gets fired or marginalized: In most organizations people are terminated because of measurably poor performance related to their work over a reasonable amount of time. But what is it when individuals lose their jobs “because they don’t fit in,” are “not one of us,” or some other discriminatory attitude and mindset. What about when “someone has to take the blame and it surely is not going to be the boss.” The risk? It limits the talent pool, drives group think, and is against the law.
When looking into an organization as a potential place of employment, or you might be thinking of investing in or supporting that organization, look at the demographics. Is the leadership photo all a type? If you have access, see who has left the organization and why. There are organizations notorious for “burn ’em and turn ’em.” It speaks to the leaders’ view of people and their approach to developing individuals.
Who has access: Networking within an organization is an essential part of rising through the ranks. One of the ways people are rewarded is access to select leaders, invitations to important meetings, and seeing high-level correspondence. It can be as simple as having a boss who takes you to a seminar to gain exposure.
On the other hand, being ignored or unwelcome to such interactions is a way of sending a message that you are not wanted in the inner sanctum.
Who gets public recognition and shout-outs: In your company are people at all levels publicly recognized for achievements, longevity, community activities — or is it a set few? If the organization is only highlighting those at the top, you can be assured, you will not be noticed or considered.
A healthy culture can see all members as high-functioning human beings with special traits and skills. Also, as far as rewards and incentives, everyone likes some form of being honored.
Who can make mistakes: In a robust work culture a certain level of risk taking is encouraged and mistakes are expected. It is acknowledged new ideas don’t always execute well on the first try and great doesn’t happen in a day.
In a toxic culture people fear making an error and do everything they can for it not to happen — being overly careful, spreading blame, or not revealing when a mistake has happened. Dangerous.
Recognition is an important part of any organization’s culture, mission, communications, and hiring strategy. Healthy groups promote, giving access to formally recognize and compensate as a form of highlighting individual contributions.
If you are assessing your role in your current organization or contemplating a job/career move, take this area of rewards and incentives into consideration. It speaks to the culture and the people you work with or might be joining. If you are a leader, it might be the time to re-assess your recognition perspective and actions.
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