What is a reward policy?
You want to reward employees who perform well. You want to acknowledge and thank them for the effort they show and the contribution they make to achieving the company's goals. Therefore, it is good to reward employees from time to time. Rewarding in many jobs today means much more than just salary. It's about all the tangible and intangible things that contribute to employees' good behavior and improved performance. We also call this " the new reward. But how do you reward your employees? All this is laid down in the reward policy.
The remuneration policy
Whereas the "old rewarding" relied on salary and bonuses, the new rewarding is about real conversations. In fact, it turns out that money no longer works as a driver to encourage people to perform well and keep them happy. There are (according to researcher Kilian Wawoe) six different goals of rewarding: increase motivation, improve performance, increase satisfaction, (work) happiness, fairness and talent development. Only the fairness goal is still about money. This is about whether the salary ratio between you and your colleagues is right. All other goals cannot be achieved with money, so things have to be different. Because if you get 20% more salary, will you work harder? No. The good conversation within the new reward is about performance improvement. The three annual conversations within the 'traditional' interview cycle are a thing of the past and the manager and employee have a continuous dialogue about growth, development and performance improvement. As a result, you look much more at the employee's talents and what his/her ambition is.
How can you reward employees?
1. Give employees autonomy and responsibility Autonomy and responsibility are one of the best ways to empower employees. It is important that employees feel part of your organization. Giving them responsibility and autonomy makes them feel important and that creates more engagement. For example, let them set their own goals based on the organizational goals. In short, give employees room to contribute ideas and to discover where their strengths lie. 2. Opportunity to grow and develop By investing in the growth and development of employees, you show them that they are important to the organization and that there is room to grow. In this regard, it is important to know that growing does not always mean that employees have to make a vertical step. For example, an employee can also become a specialist in his/her field. Discuss with the employee how he/she would define this for him/herself and what they need from the organization. 3. Feedback and recognition Because who doesn't get a kick out of getting recognition for something you did well? It is important to compliment employees when things are going well and to coach them through feedback when things are not going so well.
How can Performance Management software help you with compensation policy?
Using an online tool, you can give employees insight into where they stand and where their development potential lies. In this way you give them control over their own growth and development. In addition, as a manager you can see at a glance where each employee stands in his/her development. In Treams , employees can set goals focused on their own development points. In addition, employees and managers can update their goals at any time. This allows you to see which employees are performing well and reward them appropriately.