'Employee of the Month': Rewarding Performance?
Selecting and implementing a successful incentive scheme for your organisation is not without its difficulties, yet the rewards you can reap in terms of increased employee motivation and retention should not be underestimated. From bonus packages to benefits, your choice of scheme is anything but limited, and it is one which should be made with care: for any incentive programme to be successful you need to ensure your employees will 'buy into' the scheme.
Although hardly a new idea, 'Employee of the Month' style incentive schemes have seen a revival in recent times. The basis of this type of scheme is that each month an employee is selected for having performed well against certain criteria and rewarded for this, with the overall aim being that all employees will improve their performance in the hope of being picked for the award. While organisations may view the award in this light, however, there is always the danger that it can be viewed in a cynical light by some employees who view it as irrelevant or biased. To avoid this attitude, and introduce a really successful scheme, there are several factors a company should consider before and after implementation:
Ø Selection criteria- the company must ensure that the selection criteria used to compare the employees eligible for the award is publicised, and that there is clear comparison between the criteria and the achievements of the employees who win the awards. If the criteria are fair and transparent, employees are far less likely to view the scheme as biased or negative. The selection criteria should be relevant to the business and normally include exceptional performance and behaviour in line with the company's vision or values. Be careful that none of the criteria seem to exclude certain employees or positions from the award- everyone needs to be eligible for it to be a success.
Ø Selection process- this is one of the most important factors for protecting the scheme from allegations of bias. While having a scheme where all employees can vote for nominated candidates may appear to be the fairest option, in fact organisations often find that the candidate belonging to the largest team tends to win, as other team members are apt to vote for them. A process where a committee selects a winner based on anonymous details of achievement can often prove to be more popular. The most successful schemes have an initial open election process, where colleagues or line managers can nominate employees to be put forward for the award, the details of which a member of the HR team collates and relays (without names) to a committee, who then meet to decide on the winning employee for the month. The most scepticism in employees is caused if only management and/or HR are involved in the decision making process, so having a committee of employees from all levels in the company makes the award process more equal.
Ø Reward- the size and type of reward will depend on the company, but there are many possible options. Sometimes an employee is given money or gift vouchers, while in other instances the reward might be non-financial, for example an additional day of leave. In some cases companies even provide their employees with a weekend away (including additional holiday). Another option is entering all of the winning employees into an 'Employee of the Year' competition, rewarding the one overall winner with a larger prize.
As with all incentive schemes it is important to refresh the format occasionally to maintain employees' interest and to ensure that the scheme runs consistently throughout the year. Marketing the scheme is important as well, as this will help to gain enthusiasm and participation from the employees. The focus of the scheme should remain at all times on recognising exceptional employees and reinforcing the company's mission statement and values.
For more information on implementing an 'Employee of the Month' scheme, or for help deciding on the perfect incentive scheme for your organisation, email campbell@hradvantage.co.uk or call on 01494 451681.
September 2006
