How to Create Employee Performance Management Strategy with Smart Incentives and Rewards System
Performance Management Strategy Rewards System should be designed to support your overall company vision. The business strategy must be powered and backed up by performance management strategy. In addition setting up appropriate incentive based program that allocate bonuses and rewards in line with your KPIs and metrics is crucial for success.
Have each business unit, department, team and employee in line with your strategy. This is crucial for building a high performance organization.
The business you are in might be different when you compare to your rivals. In most cases each company is unique. Even same industry competitors have different business models and goals. Your goals define your business strategy and performance management structure.
Try to determine your organizational goals which should be accomplished and define how employee performance levels could play as a differentiator for your business. Similarly, think about the culture in your business and also other important elements that drive what kinds of benefits will work in your company. Benefits, bonuses and rewards don’t need to be necessary monetary rewards.
Your employees as well could be motivated by rewards like better future position, new career development options, education, time off, flexible hours, employee recognition, etc.
Set up a very clear and to the point business objectives for each employee so they can stick to the plan. Preferably, objectives point every employee to the path you would like them to work on.
If these objectives aren’t appropriately organized your employees could be in a position to make decisions as they go based on the daily developments. This is not productive and does not align all your projects and initiatives towards same business goals.
At the same time don’t forget that you business goals must be well formed, at the same time challenging for your employees and specific. Keep in mind when you finalize your goals to make sure they are achievable and not impossible for your employees.