HOW ARE EMPLOYEES REALLY REWARDED?
The correct answer is not: “with a hashtagbonuses”.
The correct answer is: “with a hashtagsystem”.
Many hashtagSMEs reward episodically:
– hashtagprize at the end of the year
– increase to retain a person
– hashtagincentive negotiated on a case-by-case basis
– hashtagprize discretionary
Result? Perception of arbitrariness, hashtagdemotivation silent, turnover of the best. An effective reward system must respect at least these 4 structural criteria:
1. hashtagSTRATEGICALIGNMENT
The prize must arise from hashtaggoals related to margin, productivity, quality or growth. If it doesn’t impact the income statement, it’s not a system: it’s a cost.
2. hashtagMEASURABILITY
Clear objectives, defined KPIs, transparent formulas. As highlighted in the design of incentive systems in dozens of academic studies, the structure and calculation criteria are crucial for the motivational effect.
3. hashtagECONOMIC SUSTAINABILITY
A healthy system finances itself: the hashtagperformance generates value and part of the value is redistributed. This is the coherent and underlying logic with the approaches hashtagGainSharing e hashtagProfit Sharing.
4. PERCEPTION OF hashtagEQUITY
According to Vroom’s expectancy theory:
Motivation = Value × Probability × Connection between effort and outcome.
If the connection isn’t clear, motivation collapses. Attention:
The economic reward is only one lever of the Total Reward. Recognition, professional growth, training, autonomy and role clarity have a structural impact on retention.
I remember that a well-designed reward system can:
A) Reduce the hashtagturnover by 10–20%
B) Increase the hashtagproductivity up to 8%
C) Free up managerial time currently spent on individual negotiations
Rewarding does not mean “being generous”. It means building a mechanism that guides behaviors and results.
What is your model today: episodic or systemic? Does your system really reward performance…or are you just handing out money to avoid conflict?
hashtagPerformanceManagement hashtagReward Systems hashtagHRStrategy hashtagIncentive