Go ahead and pay more
Recently I read very interesting article that highlights challenges and need of creativity in HRM (http://www.hrmtoday.com/featured-stories/go-ahead-and-pay-more/).
I agree with author, especially in nowadays economy, companies are in need for creative solutions in order to find ways on how to avoid waisting money on employees who do not perform well. Author suggests one of possible solutions. What do you think about his method? Will it work?
Also author discusses "managers fear factor". I found it interesting because it sounds very controversial on one hand companies are trying to save every penny but on the other hand when time comes to act managers fear to be disliked if they use "harsh" way. How do you feel
Recently I read very interesting article that highlights challenges and need of creativity in HRM (http://www.hrmtoday.com/featured-stories/go-ahead-and-pay-more/).
I agree with author, especially in nowadays economy, companies are in need for creative solutions in order to find ways on how to avoid waisting money on employees who do not perform well. Author suggests one of possible solutions. What do you think about his method? Will it work?
Also author discusses "managers fear factor". I found it interesting because it sounds very controversial on one hand companies are trying to save every penny but on the other hand when time comes to act managers fear to be disliked if they use "harsh" way. How do you feel
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AntwortenLöschenHey Polina, I really like the article you posted!
AntwortenLöschenI also agree with the authors opinion. I think it is the right way to reward those, who really push the company forward and deliver a great performance. The average/ low performance worker will realise this and, if they are interested, push their selfs to provide the same outcome. Of course, the competition between the employees will rise, but I think, that a little bit of competition is always good and brings maximum performance.
Today, a creative bonus system is one of the key elements to make employees happy and to keep them in the future. This can be a normal money reward, but also a nice trip for the family, a car or a better office place.
During my PTS I made the experience, that a good bonus system is really essential. It was small office in Shanghai with only 7 employees, and the rewarding system, was either extra money, or extra holidays. This is very special in China, because the normal office workers have a lot less free days during the year than we are used to have in Europe. The result of the rewarding system was, that every employee was willing to work a lot overtime, and stay longer at the office to deliver a high performance. So I think it was a win win situation for the company and the employees.
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AntwortenLöschenIn my opinion, the approach of rewarding high performers better than low performers - even though it might be absolutely reasonable and justified - seems a little contradictory in itself.
AntwortenLöschenShouldn't the aim of each employer be to solely hire qualified personnel, who noticeably contributes to overall business sucess and high performance, in the first place?
In the long run companies would probably benefit more (both quality-wise and financially) from gradually replacing employees delivering low performance with high potentials than granting those low performers bonuses and company rewards even though they did not qualify for such generous allowances.
great article! I really like some of the points mentionned in it and I also do believe that high performers should be rewarded accordingly. This will even more motivate the ones who got rewarded and as Felix already said also push the "average performer" and increase competition.
AntwortenLöschenHowever, one should be careful not to overestimate the power of monetary benefits. I believe some of you might have heard of Herzberg and his two-factor-theory, in which he explains that hygience factors (such as salary) won't increase job satisfaction, but it's rather the motivation factors (recognition, responsibility) that will lead to higher levels of motivation among the employees. Therefore a purely monetary benefit system for the high perfomers might lead in the wrong direction. I like the idea Felix mentioned, that the employees could choose between money and extra holiday, as this gives the employees a choice.
But still, additionally to the monetary or other benefits it is essential to value a worker's performance also by recognition and feedback. During my exchange semester in Canada, we had one class where we had to present different companies and their internal reward systems. And I really wondered about the fact that every single company that was presented in the class had some kind of a "employee of the month"-programme. I'm not quite sure if this would work quite as well in Europe, but it might be worth considering.