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Rewarding and recognizing employees is tricky business. It can motivate people to perform their jobs more effectively or it can utterly discourage their efforts.
Here are a few tips and traps:
Establish a clear link between what people are rewarded for and the organization's priorities. Does everyone see and understand the relationship between their improvements and financial rewards? Too many profit-sharing plans, for example, are disconnected from daily work. The effect of cost control or customer satisfaction efforts on the bottom line is so fuzzy that it's meaningless.
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