The way you employee rewards program, PRMMS is an important foundation for effective people management. Money is by no means the only motivator of people, but too little money demotivates powerfully. Studies have shown that the material reward is much stronger than the monetary reward.
1. How to determine the levels of remuneration
To determine how much compensation is appropriate, consider what level of compensation employees will attract, retain and motivate people of the required caliber. If an employee does something that leads to a one-time incentive for the company, a one-time incentive is most appropriate.
2. Why give employees additional remuneration in addition to wages?
Keep in mind that the main reason you give an employee reward program,PRMMS is that you want exceptional results, not comparable productivity. The exceptional performance will more than cover an additional fee.
– remuneration of employees should be established for noteworthy achievements
– Rewards should be associated with the specific completion of assignments
– Employees should be encouraged to state their latest achievements
– Make sure that the employee knows that they deserve it; he will have a great impression on their personality
3. Employee benefits should never be an alternative to a reasonable remuneration scheme
This type of remuneration should not be established as a sustainable variant of stable income changes, when in fact these changes must be performed for the permanent and regular performance of tasks, excellent performance and noticeable changes in good faith or in raising the status score. Remember that the employee’s reward is a one-time incentive program; Therefore, it should be stated and should be well understood by employees so that they know where to stand.
4. Employee benefits should not reflect the impression that these are changes in the basic payment
This should be stated to the employees so that they do not expect anything more than what they should have received. Make it obvious that extra pay for special achievements and nothing more. As a rule, remuneration to employees may be in the form of cash incentives or non-cash benefits. This may even be something of a real financial value, for example, a personal letter.
5. Compensation by volume
If you must use the employee’s monetary compensation type, give a reward based on the results. This means that the employee receives a fixed amount for a certain amount of results. Theoretically, this gives the employee the best incentive to maximize output. In fact, employees tend to set a ceiling on their income and, therefore, for their efforts. Nevertheless, the key concept here is that management should reward an employee who is tied to individual achievement. The reward should be big enough to have value – no one likes to receive too little reward, as it can have the opposite effect and cause the employee to treat the company as cheap or to underestimate it. Never reward an employee for what was taken as a reasonable goal. It should be given only for exceptional achievements.