Setting goals for awarding teams is a highly sensitive topic If they are done well and – just as importantly – if they are well communicated, we can make them an incredible engine for productivity and quality of work. If they are poorly designed, we run serious risks of having high demotivation. It's worse to have a poorly set up incentive system than simply having nothing and letting people do their jobs without that stimulus.
(Tips 11 to 20 out of a total of 20)
11.
The system must be balanced.
Even if the focus of the service is on Sales, it doesn't make sense to have only pure sales objectives and not have something that controls at least its quality. I can be excellent at meeting sales goals without ensuring that the customer has all the information they need to make a decision, for example. And with that, I can even sell immediately, but I will have poor loyalty and damage the company's image The balance is also seen on another level, the balance between monetary prizes and prizes with a symbolic value - a voucher to go somewhere on the weekend, or something more symbolic like attending a meeting with the administration. This is particularly important at levels and roles where exposure is more valued.
12.
Use red lines if necessary
Do not include aspects such as low absenteeism, non-existence of scams or serious failures as components for awarding the prize. These are minimum requirements for any role and do not represent merit. It makes no sense to reward someone for being present at your job. At the most I may not reach the expected award because in fact I missed it without warning and because there was no plausible justification for it. Or because I cheated the system. Depending on the severity, it could be a reason to terminate a contract or be a knockout for a prize. Being one of the components for awarding an award distorts the message of excellence that we want to convey.
13.
Allow the appraisee to follow the process
We all would like to have a technology that monitors the results in real time, so that the appraised person is aware at all times of the fulfillment of their goals. This is not always the case. However, if you have tools for real-time monitoring, make them available to everyone involved. If not, find formats - even once a week - to take stock of the situation so that the teams have a sense of how they are doing. There is nothing worse than reaching the 28th and discovering that you no longer reach the goal and all you had to do was make an extra effort and you got there. And this additional effort was good for the employee and for the Company.
14.
Don't let the incentive system stand still.
All companies have frequent process changes, and it is therefore natural that adjustments are made to the system on a regular basis. The fact that he maintains that he has stability does not mean that he is like a mummy stuck in time. If there has been a fundamental change in a key process, if a new range of products is created, and with that the objectives are no longer adapted to reality, then these have to be adjusted.
15.
The system must be representative
It is very common for certain people to be permanently pulled into activities that are not included in their goals. Often the goal is meritorious, as when we want to test someone to see if they have potential for promotion. However, with this we are hindering the fulfillment of the defined objectives and, at the limit, withdrawing incentives for this type of task to be carried out. In a sales objective, for example, the less time the employee is available to make sales because he was called to other tasks, the more difficult it will be to achieve the objectives. One way to do this is to remove the time allocated to other tasks from the productivity calculation, or find a way to account for these other tasks.
16.
Don't forget your most specialized team.
We often set up an incentive system focused on employees with an activity that is easier to assess and/or that has a direct impact on the main activity of the Company or Department. However, there are numerous collaborators who carry out essential support tasks but with less visibility. Ensure that there is an incentive system for these employees as well, even if they have a wider frequency or goals per project, for example.
17.
Be especially careful with the goals for first-line managers
First-line managers are critical in any organization. There are usually goals associated with the team. Special care must be taken, as the teams are different and the reasons behind their results are multiple and not all are dependent on the supervisor's work. I can be an excellent supervisor and get a weaker team to pass the median, but still far from the results of other managers who have better teams, for example. Goals that combine absolute, evolutionary and individual results, for example, are preferable.
18.
Control system performance
Any system must be checked regularly. If certain goals are never achieved or are always achieved, it is because the level of demand is not the most adequate. If a good part of the team does not believe in the fairness of the reward system, regardless of the reasons, the fact is that it will not have the intended results and may even harm the team's overall performance. Be bold - if it doesn't work, redesign the system completely. The important thing is that the objectives fulfill what they were designed for.
19.
Listen.
If you don't know exactly how to set up the incentive system, talk to people. Ask what is most important, what takes the most time to do. It doesn't mean that I accept all the suggestions, but you will be surprised by the suggestions that come from the team. Of course, there is a framework to follow - it doesn't make sense to tell a sales team that the only goal is to treat customers well. They also have to sell. But you can ask the team how we can assess the quality of the sale, for example. Or get suggestions for accounting for sales.
20.
Talk to Us
Consult the best consulting company on the market on this matter. Happy Work can help fine-tune the incentives and rewards model. We check if it is working in accordance with the goals you set and we collaborate in defining measures to correct it.
(Tips 11 to 20 out of a total of 20)
11.
The system must be balanced.
Even if the focus of the service is on Sales, it doesn't make sense to have only pure sales objectives and not have something that controls at least its quality. I can be excellent at meeting sales goals without ensuring that the customer has all the information they need to make a decision, for example. And with that, I can even sell immediately, but I will have poor loyalty and damage the company's image The balance is also seen on another level, the balance between monetary prizes and prizes with a symbolic value - a voucher to go somewhere on the weekend, or something more symbolic like attending a meeting with the administration. This is particularly important at levels and roles where exposure is more valued.
12.
Use red lines if necessary
Do not include aspects such as low absenteeism, non-existence of scams or serious failures as components for awarding the prize. These are minimum requirements for any role and do not represent merit. It makes no sense to reward someone for being present at your job. At the most I may not reach the expected award because in fact I missed it without warning and because there was no plausible justification for it. Or because I cheated the system. Depending on the severity, it could be a reason to terminate a contract or be a knockout for a prize. Being one of the components for awarding an award distorts the message of excellence that we want to convey.
13.
Allow the appraisee to follow the process
We all would like to have a technology that monitors the results in real time, so that the appraised person is aware at all times of the fulfillment of their goals. This is not always the case. However, if you have tools for real-time monitoring, make them available to everyone involved. If not, find formats - even once a week - to take stock of the situation so that the teams have a sense of how they are doing. There is nothing worse than reaching the 28th and discovering that you no longer reach the goal and all you had to do was make an extra effort and you got there. And this additional effort was good for the employee and for the Company.
14.
Don't let the incentive system stand still.
All companies have frequent process changes, and it is therefore natural that adjustments are made to the system on a regular basis. The fact that he maintains that he has stability does not mean that he is like a mummy stuck in time. If there has been a fundamental change in a key process, if a new range of products is created, and with that the objectives are no longer adapted to reality, then these have to be adjusted.
15.
The system must be representative
It is very common for certain people to be permanently pulled into activities that are not included in their goals. Often the goal is meritorious, as when we want to test someone to see if they have potential for promotion. However, with this we are hindering the fulfillment of the defined objectives and, at the limit, withdrawing incentives for this type of task to be carried out. In a sales objective, for example, the less time the employee is available to make sales because he was called to other tasks, the more difficult it will be to achieve the objectives. One way to do this is to remove the time allocated to other tasks from the productivity calculation, or find a way to account for these other tasks.
16.
Don't forget your most specialized team.
We often set up an incentive system focused on employees with an activity that is easier to assess and/or that has a direct impact on the main activity of the Company or Department. However, there are numerous collaborators who carry out essential support tasks but with less visibility. Ensure that there is an incentive system for these employees as well, even if they have a wider frequency or goals per project, for example.
17.
Be especially careful with the goals for first-line managers
First-line managers are critical in any organization. There are usually goals associated with the team. Special care must be taken, as the teams are different and the reasons behind their results are multiple and not all are dependent on the supervisor's work. I can be an excellent supervisor and get a weaker team to pass the median, but still far from the results of other managers who have better teams, for example. Goals that combine absolute, evolutionary and individual results, for example, are preferable.
18.
Control system performance
Any system must be checked regularly. If certain goals are never achieved or are always achieved, it is because the level of demand is not the most adequate. If a good part of the team does not believe in the fairness of the reward system, regardless of the reasons, the fact is that it will not have the intended results and may even harm the team's overall performance. Be bold - if it doesn't work, redesign the system completely. The important thing is that the objectives fulfill what they were designed for.
19.
Listen.
If you don't know exactly how to set up the incentive system, talk to people. Ask what is most important, what takes the most time to do. It doesn't mean that I accept all the suggestions, but you will be surprised by the suggestions that come from the team. Of course, there is a framework to follow - it doesn't make sense to tell a sales team that the only goal is to treat customers well. They also have to sell. But you can ask the team how we can assess the quality of the sale, for example. Or get suggestions for accounting for sales.
20.
Talk to Us
Consult the best consulting company on the market on this matter. Happy Work can help fine-tune the incentives and rewards model. We check if it is working in accordance with the goals you set and we collaborate in defining measures to correct it.
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