Author: Fabiola Eyholzer
Compensation and bonuses are still used as predominant way to incentivize and recognize people. However, Lean | Agile Enterprises avoid individual cash incentives that are so toxic for their teams and instead move to more meaningful ways of reward and appreciation, that acknowledge the fact that people are driven by mastery, autonomy, and purpose. They also bring more flexibility and transparency to their Reward solutions and invest in the health and wellbeing of their people.
The industrial era belief that money is the strongest (and only effective) motivator for employees is firmly rooted in many organizations. Unsurprisingly, compensation and cash bonuses are still used as predominant way to incentivize and recognize people – an expensive yet ineffective tool.
Ever since Daniel Pink’s “Drive” (and decades of scientific studies) it is clear: Agile people are driven by mastery, autonomy, and purpose. Meaningful reward and appreciation for them comes in forms of pride in achievement, social contacts, interesting work, new challenges, growth opportunities, and self-fulfillment.
The way to take the topic of money off the table is by paying employees fairly and competitively, but then doing whatever it takes to get them to forget about pay. This includes having open and honest communication about pay, and matching compensation with adequate non-monetary reward and recognition.
Here are some guidelines to help rethink a total compensation approach:
A balanced compensation approach is part of “taking the topic of money off the table”. It promotes a broader understanding of an effective incentive system – one that appreciates the appeal of growth opportunities.
This article is part of the series “Aligning key Themes in Human Resources to Lean | Agile Values & Principles”
This post was contributed by Fabiola Eyholzer, CEO of Just Leading Solutions, LLC. More information about Fabiola, Agile HR and the services of Just Leading Solutions can be found at www.justleadingsolutions.com.
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