3 minute read
From Participation Trophies to Real Recognition: Rewarding Effort over Outcome
from EDCO Blogs
In the modern workplace, there has been a shift from rewarding mere participation to recognizing genuine contributions that further company goals. Though keeping employees engaged is crucial, indiscriminate rewards can undermine the morale of top performers. However, the solution is not to focus solely on results but to incentivize the behaviors that drive excellence.
The Pitfalls of Participation Prizes
1. Stifle Exceptional Work Effort - Employees lose motivation to exceed expectations or produce extraordinary results when rewards are given out indiscriminately regardless of effort.
2. Erode Significance of Performance Rewards - Making and recognition programs less meaningful and impactful. Exceptional effort is diluted when participation rewards are handed out to all employees for basic attendance or activities.
3. Misalignment with Profit Drivers - If compensation and rewards are disconnected from the behaviors that boost profitability and growth for the business, it undermines financial performance.
Additional Problems with Overvaluing Results
An obsessive focus on outcomes above all else can also be counterproductive:
1. Ethical Cutting of Corners - Employees may compromise integrity and ethical standards if rewards incentivize only outcomes at any cost.
2. Limit Innovation Risk-Taking - Innovative solutions often require testing and risk-taking. Failure may be punished if the focus is exclusively on results and experimentation is stifled.
3. Reduce Knowledge Transfer – Since subject matter expertise and unique knowledge provide individual leverage, overvaluing outcomes can limit sharing with colleagues.
Balancing Results and Behaviors
The optimal framework creates alignment between effort, values, and outcomes. Employees need clarity on how working in line with company values impacts success. Milestone tracking allows effort to be gauged in the context of actual advancement toward goals.
Customizing Multi-Channel Motivational Programs
1. Monetary Programs - Incentives are given through raises, bonuses, and other financial rewards. Should reinforce behaviors qualitative analysis indicates drives financial results.
2. Non-Monetary Recognition - Utilize forms of positive reinforcement that highlight employee behaviors publicly through awards, profiling examples, and leadership praise based on aligning actions to values.
3. Cultural Initiatives - From steering committee directives down through the ranks, company culture initiatives should systematically emphasize desired behaviors.
Potential Pitfalls to Avoid
Launching incentive programs without clearly defined desired behaviors and milestones
Failing to coordinate initiatives across departments
Moving the target metrics too much without effectively communicating reasoning
Guidelines for Targeting Effort While Maintaining Elite Performance
1. Set Clear Direction – Communicate how values and goals interrelate
2. Reinforce Steps, Not Just Leaps – Praise progress milestones
3. Measure Effort Metrics – Track leading indicators of activity
4. Spotlight Standouts – Have programs recognizing extraordinary contributions
New Horizons Conference Incentive Example
The upcoming sales conference offers an opportunity to test a targeted incentive program. The peer-voted “crystal trophy” winner embodying the Summit Mindset could win an extra vacation day for demonstrating:
Creative Deal Making
Compassionate Client Service
Dedicated Development
Ongoing Reinforcement
HRIS platforms now enable sophisticated metrics tracking like training completion rates, peer-to-peer collaboration levels, and milestone progression. This allows effort indicators and behaviors to be embedded into ongoing performance management – not just one-off programs.
Key Takeaways
Truly effective incentives require alignment between values, milestones, capabilities, and rewards. Reinforced effort pays dividends when synergistically integrated with strategic outcomes. Progressive recognition frameworks celebrating extraordinary behaviors and progress build intrinsic motivation across all performance bands.
