Employee Incentives (CONT’D FROM PAGE 1)
service. In the end, those choices will most likely lead to customer dissatisfaction and reputational harm. Building Effective Incentive Structures A strong system that is aligned with goals and values and regularly applied is the best offense and defense an organization play. ''They want us to give great service, but they reduce our bonus if our calls go longer than three minutes. I'm not going to lie, I start talking faster at the 90-second mark." Align with Long-Term Goals Think about what matters. For example, are you fo- cused on customer retention and satisfaction? If that’s the case, incentives should support those results. Additionally, there should be consequences to address behaviors em- ployees choose that negatively affect retention and satis- faction. For instance, if the employees are rushing inter- actions, at a minimum, they should not receive a reward. Ideally, managers should address the behavior. Foster Ethical Standards When people do the right thing, they should receive recognition. When the opposite occurs, management must act quickly to coach, and correct, or cut ties if the first two approaches don't align behavior. When unethical
Silo Mentality Incentives designed without considering the broad- er impact on different departments or teams can foster a silo mentality. When employees are rewarded based on individual performance metrics, collaboration and knowl- edge-sharing may suffer. This lack of cooperation can sti- fle innovation, impede problem-solving, and limit overall organizational effectiveness. Do your incentives and con- sequences encourage hoarding and silos or do they pro- mote information sharing and collaboration? Demotivation and Disengagement Incentives that are meaningless can demotivate em- ployees and create a sense of disengagement. Employees may lose intrinsic motivation and become disillusioned if the rewards do not align with their values, interests, or as- pirations. This can result in decreased productivity, higher turnover rates, and a general decline in morale. Do em- ployees care about the rewards or consequences you Employees may develop tunnel vision when incentives are narrowly focused on a single metric or objective, ig- noring other critical aspects of their roles. For example, if sales representatives are solely focused on meeting sales targets, they may overlook the value of developing long-term customer relationships or providing exceptional have in place? Tunnel Vision
CONTINUED ON PAGE 26
Serving the North American Corrugated and Folding Carton Industries Since 1985
Give your digital marketing campaign a boost! Leverage your message to your potential customers with the credibility of Board Converting News behind it. Sponsor a weekly Monday issue or we’ll send out an eblast any day of the week to our full online circulation. You provide the copy, images and link to a video or website and we’ll do the rest! Contact Len Prazych 518-366-9017 lprazych@nvpublications.com
24 August 7, 2023
www.boardconvertingnews.com
Made with FlippingBook - Share PDF online