You have an appropriate reward scheme in place
 
Schemes for paying and rewarding people differ considerably depending on management policies.  Schemes may also vary within a company, depending on how directors believe they can motivate different groups of people to deliver greater returns for the business.
Key Issues
·         Designing payment and reward systems requires considerable expertise
·         An increase in pay will motivate a person for only a brief time before they begin to aspire to even more.
·         Your payment and reward systems need to provide value for money and deliver results  They should be:
o      A key element of your company’s personnel policy, devised and implemented at the highest level
o      Consistent across your organisation (within a particular territory)
o      Straightforward, clearly defined and seen to be fair to all involved
o      Focused on delivering agreed targets that fulfil the business strategy
·         Some businesses have adopted reward systems that have two elements:
o      a base salary
o      a bonus - The level of this may vary from a small amount of merit pay, to considerably more for a few top executives This may be decided based on:
o      Traditional piece rate systems (now discredited)
o      Paying people for their breadth of skills
o      Giving pay increases based on the time served in the company
o      Individual or group bonuses paid for meeting/exceeding business targets
o      Commission for securing sales contracts
·         Remember, that individual pay increases are not your only methods for rewarding people:
o      Many schemes now being adopted reward team effort and offer a combination of financial and non financial rewards
o      Formally acknowledging peoples’ contributions by a token of appreciation e.g. a meal out for the family, can have a significant effect on morale. 
o      Creating competition between teams and formally recognising the most successful can provide an effective and cheap incentive
o      One company reduced absenteeism from 6% to under 2% by entering people with excellent attendance into an annual draw for a small car
o      Other motivators can be job security, job satisfaction, access to training
Factors for Success      
Factors to  Avoid
1.     You keep refreshing bonus schemes
2.     You make the bonus element of pay worthwhile
3.     Your managers acknowledge leadership and individual efforts and say ‘thank you’
4.     You track performance against agreed business targets, including profit
1.     Keeping complex systems that reward individuals for their work
2.     Bonus scheme that consistently fail to pay out due to factors employees cannot influence
3.     Pay bonuses that have not been earned 
 
Who does this apply to?
All managers and team leaders
Realisable Benefits
A more motivated work force, and an increased ability to attract and retain good employees

Guides:

The working environmentThe working environment

The working environment

Sharing information with your workforceSharing information with your workforce

Sharing information with your workforce

Appraising employeesAppraising employees

Appraising employees

Succession planningSuccession planning

Succession planning

Ensuring employees gain experienceEnsuring employees gain experience

Ensuring employees gain experience

QualificationsQualifications

Qualifications

Reward schemesReward schemes

Reward schemes

Work/life balanceWork/life balance

Work/life balance

Reducing overtimeReducing overtime

Reducing overtime

Collaborating with educational establishmentsCollaborating with educational establishments

Collaborating with educational establishments