Jobs in time of Covid pandemic: Powerful role of financial incentives
India Today
Compensation is a key reason why people switch jobs, and providing financial incentives can help organizations retain their top employees.
As the war for talent intensifies and companies grapple with record numbers of resignations, the retention of high performers has increasingly become a top priority for executives.
Compensation is a key reason why people switch jobs, and providing financial incentives can help organizations retain their top employees.
Generous and specific financial incentives can help drive and sustain a rapid performance improvement. These programs can also increase accountability and the perceived fairness of differences in compensation.
Companies can use the following seven principles to help ensure their transformation-incentives programs achieve the desired outcomes and behavior changes.
Too often, transformation-incentives programs are tied purely to general outcomes (for example, overall company earnings). For many employees, this metric is beyond their control, so tying incentives to this distant outcome can weaken their effectiveness. Given the ability of performance-tracking tools to monitor progress on these initiatives, companies can get a clear picture of the new value being created by individual employees and teams. This visibility enables companies to calculate targeted financial incentives that directly influence the actions taken by specific employees.
Transformational impact requires transformational incentives. Therefore, payouts must be generous and focused on encouraging transformational performance rather than just good performance. Exceeding expectations should be encouraged. Transformation is about going after the full potential and not leaving value on the table
Sustained transformational change requires the widespread involvement of employees across an organization. This objective can be accomplished by mobilizing every employee to participate in the program—either by contributing to or owning an initiative.
