Reward Model

You have many options for motivating workers to perform well in your organization. For example, job rotation and job enrichment bring in additional challenges and experience. You also can motivate your employees by offering training courses that enhance their skills and knowledge. Your leadership style can also motivate your employees.

Performance-Based Incentives

You can enhance you employees’ motivation is by defining their tasks and attaching compensation-based incentives to a certain levels of performance. Among varied types of performance-based incentive plans, yearly bonus compensation is fairly common. Many organizations operate such a program for their employees, particularly mid-tier management employees, where employees receive a percentage of their annual salaries as a bonus. For more on-hands employees, such as those working on the factory floor or ground sales teams, you can adopt commissions, spot bonuses, output bonuses or suggestion incentive programs.

Employee Recognition and Awards

You also can use nonmonetary rewards to motivate employees. For example, employee recognition fulfills the psychological needs and desires of employees. Schemes such as “sale person of the month” or “employee of the year” certificates help boost morale as you recognized the employee for his outstanding efforts. Appreciative feedback from supervisors and managers also serve as employee recognition and helps to boost morale.

Holding seminars, exhibitions and workshops and encouraging employees to participate and then awarding the employee for participation in these events also derives motivation and recognition for employees involved.

Ownership and Profit-Sharing Options

Many times, because executives and upper-tier management are responsible for the organization’s foremost affairs, incentive plans at this level involve a higher sense of goal congruency between these employees and the organization. Therefore, you can adopt profit-sharing and stock options, using the element of ownership to motivate and enhance the employee’s performance. Employees who believe they are part owners of the company may become more efficient and productive because they believe the company’s successes are their own.

Keeping Employees Needs in Mind

The major goal of an organization’s reward system is to keep its employees motivated so that they continually perform better at their tasks. The theories of motivation by various experts such as Herzberg and Maslow state one thing synonymously: The physiological and psychological needs and desires of employees must be met and maintained to keep them motivated.

Therefore, try to keep your employees’ needs and desires in mind when designing your organization’s reward systems. Core characteristics of a robust reward system include both intrinsic and extrinsic motivators.