Rewarding Success Services

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Why Reward Success?
1.  Money – it’s a Great Motivator.

It’s true that work is not only about money, and is also about inspiration, motivation and job satisfaction. Money, however, is a big factor in driving employees. If people are given a slice of success - an extra reward to work towards - they are likely to work harder and smarter.

Introducing a performance pay system that rewards success on achievement of predetermined goals, encourages the right kind of performance and makes your business attractive to motivated individuals who like to be challenged, and rewarded for hard work.
2.  Create a Fair Workplace.

When success happens, rewarding those that created the success will increase job satisfaction and motivate those involved to achieve further success.

As well as rewarding individual achievements, rewarding groups of employees on reaching a goal or on achieving a company milestone encourages teamwork, and this can have flow-on effects in increasing employee job satisfaction and motivation.
3.  March Towards a Target.

Having teams of people collectively work towards a target can help people focus and unite to achieve a goal.

The prospect of extra rewards on achievement of predefined long-term goals can keep employees focussed on the goal, locking them into your business until the goal is achieved. Three-to-five year, long-term incentive packages, for instance, can optimise employee retention.
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How to Reward Success
  1. Create Incentive
Principle:  Choose a structure that works for you.

Make sure performance pay is structured to suit your business – that it rewards those employees who deserve to be rewarded, and does so substantially enough to make a difference in motivating them to achieve your goals.

A well-designed performance pay system is pivotal in incentivising and motivating key employees. Brash Solutions has experience in: Remuneration
  • balancing fixed and variable reward components,
     
  • designing variable reward components for all levels of employee, and
     
  • customising profit-sharing, commission-based and performance-target cash bonus schemes to create extra incentive for key employees.
  1. Track PerformanceTop
Principle:  Track performance visibly and on an ‘as you go’ basis.

Whatever performance management system you choose, it should simply and visibly track performance against predetermined goals.

Successful reward systems rely on an ability to accurately measure performance, track it against predetermined benchmarks, and establish fair reward criteria.

Brash Solutions can devise a customised tracking system for your company. Such a system could include for instance:
 
Bullet

tailored spreadsheets that:

track individual or team performance using an appropriate mix of objective and/or subjective criteria,
 
include adjudication steps appropriate to your business, and
 
link an overall performance score to individual employees,
Reward vs Performance
Bullet communications to participants explaining how their performance is to be scored and the effect this will have on the variable remuneration component of their package, and
 
Bullet a format for consulting with employees about performance issues.
In this way, teams or individuals can track their progress to a particular goal at any time during a performance period.
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  1. Get Employee Support
Principle:  Employees should support the system as a fair method for assessing their performance.

Without employee support, any performance management system is doomed to fail. Employees will want to be satisfied that the system is tailored to their job, has their input, and weeds out any extraneous factors beyond their control.

Our systems are robust enough to track performance using the right mix of objective and subjective criteria, and from individual and team perspectives - whilst flexible enough to allow for a number of concrete factors that inevitably impact on performance measurement such as:
  • costs incurred or attributed to a specific employee or team,
  • fixed costs that cannot be attributed to employees, and
  • factors negatively affecting performance outside the individual’s or team’s control.
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  1. Link Rewards to Performance
Principle:  Ensure rewards are commensurate with performance.

Rewards should be proportional to the level of performance achieved – sliding scales of performance benchmarks and associated rewards need to ensure that an average performing employee is not guaranteed a windfall.

An effective performance reward formula ensures that rewards go to the right people and not to the wrong people. Potential rewards should reflect an employee’s ability to practically influence the achievement of performance benchmarks.
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  1. Balance Formulas with Discretion
Principle:  Use an appropriate mix of formulas and discretion to ensure awards are appropriate.

As far as possible, it is important to use formulas to determine in advance how employee performance will translate into rewards, but hold some rewards back for discretionary awards to high achievers.

Brash Solutions aims for an appropriate balance between the use of predetermined formulas and discretionary bonuses. Thus Image
  • a predetermined reward may be calculated using one or a number of formulas, whether for an individual or a team, and/or
     
  • the Board or relevant manager may exercise a discretion to reward an individual high performer (possibly within certain predetermined limits), or to fix individual entitlements from an aggregate team pool.
Whichever method is used, the rewards should be seen as significant, achievable, fair, and understandable.
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  1. Deliver Rewards Effectively & Flexibly
Principle:  Tailor the form of reward to maximise the win/win outcome.

Once the amounts of rewards are determined, include incentives for a proportion to be taken as equity rather than cash.

Here we see a healthy overlap with Sharing Ownership. Participants can be empowered to choose between cash or a higher value as equity, or any combination. Those with more pressing financial needs may choose to take the majority of their rewards as a cash bonus, whilst those with a longer-term approach may prefer a higher equity share with appropriate restrictions, which can defer tax and further leverage their reward towards the longer-term performance of the company.
Contact Us if you wish to discuss any of the above, or for more information on Rewarding Success, go to:
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