Organisational Change Management Volume 2

Some Thoughts on How to Reward Efficiently

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When looking at pay satisfaction there are 4 components (Millicent Nelson et al, 2008, ie pay level, benefits, pay increases and administration/structure.

. On the other hand, there are alternative ways to rewarding and recognising rather than financial

. Recognition is about feeling special. It is hard to feel special if many staff are receiving the same thing!!!!!!

. To be effective, recognition needs to come from those held in high esteem

. Timing is important, ie the sooner the acknowledgment of staff's performance, the clearer they get the message and the more likely they are to repeat the desired performance

. The most preferred forms of recognition are non-financial including

- praise

- managerial support and involvement (asking staff their opinion)

- involving staff in decision-making

- giving them authority to do their jobs

- supporting them when they make a mistake

- flexible working hours

- learning and development opportunities

- manager availability and time

- peer team recognition

(NB Most of these do not cost a cent - not everyone is motivated by cash)

. Praise is the dominant one and there are 4 main types (personal, written, public and electronic). To determine the most apt type of praise, the following questions can help

- How often do you actually see the individual?

- Do you have the occasion for public praise, such as periodic staff meetings?

- Do you know how the staff prefers to be praised?

- Have you even discussed it with them?

- What forms of praise are you comfortable giving?


"...Nothing else can substitute for a few well-chosen, well-timed, sincere words of praise......They are absolutely free and worth a fortune..."

Sam Walton as quoted by Emily Ross et al, 2004

Research (Catherine Fox, 2006f) shows that meaningful work, a workplace staff can identify with and feel a respected part of the organisation, are stronger motivators than money. Furthermore, most Australians prefer career progression and work-life balance over money.

. Remember: time remains one of the best rewards for many busy professionals. Many organisations are giving staff the option to buy time, ie a salary sacrifice to have time available to them

An Australian survey, (Catherine Fox, 2006f), asked around 2,500 corporate employees what reward staff would like to receive from their employers. The most popular response was massage or jet boat ride (56%); followed by dinner for two (17.7%) and a department store voucher (10.1%). Corporate gifts received the lowest popularity rating including food hampers (1.7%), movie vouches (1.6%), CD/DVD vouches (1.4%) and flowers (0.4%). Furthermore, 41.8% of respondents believed that they had less leisure time than 12 months ago

(sources: Human Capital, 2004; Bob Nelson, 2003; Elizabeth Kazi, 2005a; Dennis Hall 2006a; Catherine Fox, 2006f)


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