Effective Incentives
Incentives are the fuel, the energy, which drives your business forward. Structure, align and manage your incentives well and your employees will exceed your greatest expectations.
If you desire to achieve any level of success in your business, you must not only reward your employees well but also transparently, fairly and in a form that truly engages them. These rewards must be consistent with your business strategy, otherwise, for each step you take forward, you will likely slide back three.
Getting the mix and balance of rewards and incentives in your business right can be the key to ‘powering’ the success of your business. Monetary rewards are important, but they are certainly not the only, or necessarily the best, form of incentive. Recognition and opportunity are often more powerful than a simple cash bonus.
In family businesses, leaders must ensure that rewards/incentives are transparent, fair and available to everyone. At times, leaders can have ‘favourite employees’ who receive what is perceived as unfair rewards. Such practices can significantly weaken the performance of a business.
In addition, great care must be taken to ensure that rewards/incentives are directly aligned to the business strategy that is being rolled out. You must be able to clearly see how each incentive supports the strategic goals of a business. Otherwise, its purpose should be questioned.
Leaders should continuously look to the rewards/incentives that are being offered and actively question their role in lifting the performance of the business.
#familybusinesssuccession #familybusiness
An Invaluable Resource — ‘Transition — Orienteering The Lands of Succession’
