As Budgets Tighten, Companies Seek Alternative Means to Incent Employees
No author cited
Best Practices, LLC, August 2006
White paper | Full study/similar topic studies from Best Practices
Encouraging the sharing and replication of best practices is critical to any company operating in the knowledge-based economy where an organization's greatest asset is the accumulated knowledge, skills and abilities of its employees. In a benchmarking study by research and consulting firm Best Practices, LLC, the majority of respondents indicated that formal recognition through awards and prizes is the most effective method to incent best practice adoption.
Best Practices' white paper "Performance Measurement, Rewards and Recognition: Aligning Incentives with Strategic and Operational Goals" examines some of the best practices of leading companies for performance management and incentives.
Executives, operational chiefs and personnel managers must ensure that their systems of rewards and recognition are carefully aligned with overall strategic and operational goals. Rewards and recognition systems misaligned with corporate objectives can result in behavior that is not anticipated or desired by management. These unanticipated actions may be personally beneficial to front-line sales reps, manufacturing floor managers or even senior executives, yet they move the company away from its overall goals or cause systemic harm.
In addition to measuring the progress of employee performance toward corporate goals, well-defined performance measurement systems help gauge employee reception, understanding and buy-in for reward systems. This critical feedback can help managers make adjustments necessary to drive improvements and avoid the unanticipated behaviors and actions that negatively impact corporate goals.