Management clinic - Bonuses: Rewarding behaviour

It is very difficult to motivate staff when at the same time you are not giving expected financial incentives. You have to accept that your staff are going to feel unmotivated and will question why they should put in the effort if it is not rewarded.

The most effective way to keep your staff motivated is to have them fully invested in the company; if they feel that it is treating them genuinely, fairly and not taking advantage of them in these economic times, they will be more inclined to help the company to improve. Now more than ever, your employees need to feel that they are respected and valued for their contributions.

The best way to encourage productivity is to reward it. You might not be able to give bonuses across the company but can you recognise some individuals on a discretionary basis for the work they have put in where they have gone the extra mile for the company.

If your company is split into different departments, is it clear that you value the work of each equally? Many companies fall into the trap of recognising the work of only the departments that create revenue. The work of other departments in providing or supporting your product or preventing money loss is equally as important and should be recognised.

Ask your employees to make suggestions on ways you can become more cost effective and generate more profit. Speak to them about what needs to be done to move the company forward, even if this means rethinking some of your established methods of working.

Visibility
You need to be seen to recognise hard work and commitment and, at the same time, tackle those who are not pulling their weight; now more than ever, you cannot have employees who just coast by. You cannot afford to give the impression that there is no point in working hard because it pays the same as doing very little, so give your employees a reason to believe that it is worth making the extra effort.

You might not be able to pay the Christmas bonus at this time however, if the situation improves, would you be able to pay it, or a percentage of it, at the end of the financial year on a deferred basis? You do not have to work on an all-or-nothing approach.

Consider whether or not you can give something in recognition to your staff for their hard work on a one-off basis at the end of the financial year, when your final position is clearer. If your employees know that there is still a chance that they can receive something if they keep pushing, they will be more inclined to stay productive.

Money is the main motivator for people to work, so if you cannot offer this then look at what you can do to reward them in some other way; also look to reduce their costs for attending work. Consider allowing home working or, if you can, be flexible on working hours. If your employees can reduce their travel or childcare costs or have more control over their working hours, this will be a big incentive.