Rewarding and The Good Conversation

Improving employee performance or motivation with money does not work. Bonuses only work for low-complexity and piecework jobs, for example a job where you have to pick asparagus. Asparagus pickers work purely for the money and not because they are developing themselves. But financial incentives certainly also have disadvantages. In the book Humankind, Rutger Bregman cites a study from the University of Massachusetts. Researchers examined 51 studies on the effect of financial incentives. They found overwhelming evidence that bonuses can dull the intrinsic motivation and moral compass of employees and that bonuses and targets can also damage creativity.

Research shows that salary level does not always make employees happy, but at most satisfied. It is important that salaries are fair, not deviating from organizations in the same industry and comparable internal positions. Differences between colleagues are acceptable as long as they are considered just.

'You have to reward people well. And then do everything to make them forget as quickly as possible that they work for the money.' – Auke Nauta HR scientist and consultant

If employees need to improve their performance, a good conversation is a better stimulus, driver and motivator than money. If an organization has done well, employees who contributed can be appreciated with, for example, a team reward and possibly a pro-social bonus. With such a bonus, employees themselves, not the manager, decide who receives it. The idea behind team rewards is that individual achievements can often only be delivered because every team member contributes. Individual achievements are therefore actually team achievements, and an individual bonus does not fit.

Employees differ in their need for appreciation and it is therefore a true art to find an appropriate form for this. A company car, a pension plan and bonus are great employment conditions, but the following forms of appreciation can also be interesting:

• creating the right facilities and conditions for optimal (remote) work;
• an interesting project;
• paid childcare;
• setting your own working hours;
• training;
• memberships;
• dinner for two voucher.

Appreciation can make a day, even change a life. Your willingness to put it into words is all that is necessary – Margaret Cousins

The Good Conversation is an excellent place to reward and express appreciation. Writing a card, giving a small gift to emphasize your gratitude, or even a hug if appreciated, are ways to show appreciation. In more and more organizations, compliment cards are distributed among colleagues.

Ask top performers how they want to be appreciated. This is only possible if there is willingness and ability to follow through.

Organizations reward a great performance with an immediate reward. An extra only has value when it is given shortly after the achievement, is unexpected, and the objective has actually been met. And we are not talking about large amounts, but for example a gift. A gift has even more value when it is an experience tailored to the employee, because that remains a valuable memory.

Source: book Het Prestatiemenu

Want to know more about staff turnover? And how you can tackle it? Also read our blog 'Preventing staff turnover: 10 tips & calculate it yourself!'.