Bonuses: A boost to productivity
Dec 02, 2019
Bonuses are tangible incentives that promote the productivity of the co-workers, but, do they really help me be more productive?
These incentives are normally given as a reward or are merit-based because of the effort that was put forth, for having exceeded the expected results when fulfilling an activity or several activities within a defined time-frame.
Let’s look at it this way; many employees all around the world have enjoyed these incentives that motivate us to focus on our jobs, to put forth a little more effort when performing our tasks, thus focusing on our goals, however, some business people and entrepreneurs have come to doubt the effectiveness of them and I have to tell you, this depends 100% on structuring and presenting the bonus correctly.
Next, I will talk about which factors must be considered before implementing a bonus in your company or your business so that you not only avoid throwing money away but so that you can truly and properly motivate the people that work with you, to help you exceed your overall goals.
#1 Assertiveness.
Assertiveness is key to getting good results, when you incentivize your people with a bonus, it must be directed towards resolving a problem or a weakness in your team or company, many times you could give out bonuses only to fulfill a moral obligation rather than seek the comprehensive development of the people. That’s why we recommend watching the areas of opportunity, and remembering that the bonus is a complement to motivation to perform the designated work correctly.
I will give you an example; would you implement a bonus for being on time in a company with a great number of Japanese or Germans? Culturally, they are very punctual, and to give a bonus in such a case would create an unnecessary expense, without an important improvement in the goals of the company, since even if there are people of other cultures where not being on time is common, adjusting to the cultural environment would be simpler and there wouldn’t be a big difference in the results; however in Latin American countries it’s one of the bonuses that are used the most, since as incredible as it sounds, starting or arriving at the scheduled time can be interpreted loosely or it is understood that a certain lapse in the time is “acceptable”.
#2 A defined time-frame.
When the bonus expires must be perfectly clear, structured, and defined, since any ambiguity in this respect could lead to discrediting our incentive or it not being accepted, the sincerity of our bonus is highly questioned when the time-frame is not certain, it could even produce the opposite effect to what we wanted.
Sometimes there are goals that can be measured weekly, others monthly, each semester, or annually.
This time-frame must be clearly stated by the evaluator and it must be respected for it to be as effective as it can be.
An example of this is the sales bonus; this bonus, even though it’s very common, is tricky because it must be monitored during its duration and readjusted if necessary, it’s a bonus that normally depends on a set time or season and it’s in itself complicated, since it can unite teams or create rivalry and competition among the participants.
#3 Reachable
How fragile the bonus is depends a great deal on whether it’s reachable or not, when it’s time to motivate, many times we make the mistake of exaggerating, particularly when talking about what can be accomplished, a goal that is set too high without a logical action plan to reach it, will prevent people from trying and could even generate a pessimistic feeling within the team.
A clear example would be in production, if the bonus will be given when production in the company increases by more than 30% but currently they already feel overworked, that goal can be overwhelming and not really realistic.
#4 Attractive
Bonuses do not always have to be in cash, although in most cases, money has the most attraction, you have to find what pleases your people the most; attending an out-of-town event with all expenses paid, vacations, additional days off, an improvement in the office, an additional perk or benefit, etc. Sometimes there are things that can be more attractive than money that don’t change your budget for the bonuses very much.
We hope that these tips are useful to you and that you can have motivated, productive and very happy teams.
© 2019, All rights reserved, Aldin Consulting Group, LLC.
Fernando Díaz Guerrero
[email protected]
www.accion-istas.com
www.aldingroup.com
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