Reward magazine looks at 'the big picture' and asks 'how effective is pay for performance?'. Innecto Senior Reward Analyst, Adam Nuckley, shares his thoughts on this interesting topic.
Adam's comments are below ...
“People are motivated when they feel valued by their organisation. Performance pay and cash bonuses certainly have a part to play in this, but ultimately it is personal recognition that is most important. Too often organisations will give a cash bonus or pay award without giving context as to why they have earned it or even a simple ‘thank you’. Employees still appreciate the extra money in the pay packet but that will be a temporary feeling that fades quickly, whereas personal recognition is associated with the individual who gives it and stays in the mind. Organisations should remember that if you aren’t communicating your performance pay properly you are simply wasting the cash."
