Why Most Reward Systems Fail and What to Do About It

Spot or annual bonuses

Most workers are reasonable about what they expect to receive from their organization as long as they’re treated with respect and are given the opportunity to influence key decisions that may affect them.

Workers have varying self-worth and needs for extrinsic and intrinsic rewards.

every autonomous unit in the organization, e.g., wholly owned subsidiaries, can design a performance-based reward system according

Employees’ work life can satisfy external criteria for self-worth and can be an important forum for self-expression.

skill-based pay to reward those who acquire additional expertise and to develop a multiskilled work force

greatest incentive for employee performance is affording one another the simple pleasures in life: warmth, care, thoughtfulness, appreciation and kindness.

Most employees want to take ownership in their contributions to the company, rather than “rent” themselves to the organization.

Employees like feeling appreciated. A smile and a “thank you” goes a long way.