Do Reward Systems Work?

When I think of reward systems in the workplace my first thought goes to the carrot and stick analogy.

Simply put - the offer of reward vs. the threat of punishment.

Not exactly motivational.

But after working with 150+ GM’s of a reputable organization last week my perspective has changed…

When’s the last time you caught someone doing good at work?

It sounds elementary (or something you got a sticker for in elementary school), but the impact is much greater.

• How often are your mistakes and shortcomings highlighted?

• How motivated to change does that make you feel?

I’m not saying holding people accountable isn’t important because it is.

Yet you do want to reinforce what you want to see more of right?

The concept of rewarding good behavior isn’t new

But as my friend Ali Merchant always says,

“Common sense, yes. Common practice? No.”

Buying into the “why” behind reward systems is crucial to executing it.

Maybe this will help you…

Let’s take a step back and look at the big picture.

Reward systems not only help identify star performers, but they also help pinpoint future leaders.

• We’re always talking about developing the next leaders, but isn’t it more beneficial to identify those who naturally stand out from the rest?

• If reward systems are a voluntary way to establish high achievers, then recognize them as potential leaders, is that not reason enough to try it?

In a discussion I had with the executive team of a current client of mine, the topic of culture came up.

Work culture is the core values of a company exhibited through shared behaviors.

That’s a fancy way of saying what the people at the top do (more than say) show what matters.

So along with reward systems in place, it really comes down to leading by example.

One of the main reasons why reward systems are worth trying is because you need to test your people’s desire/output in order to determine what to train them on.

Of course without the buy-in from current leadership, reward systems are just a fancy buzz word.

But installing one provides a fair, objective way for the cream to rise to the top enhancing the performance of individuals and the company at the same time.

So if you agree reward systems are worth a shot, but don’t know where to start reply to this email and let’s chat.

God Bless,

Scott

P.S. If the goal is to identify the future leaders of your company…maybe you need a talk like this👇