This blog is about rewards and incentives
According to an article posted , Seven years ago, CEO and president eliminated all individual incentives for the 1,800 employees at Industries, an El Monte, California-based distributor of electronic components. To your average outsider, this may have seemed like a great way to cripple an entire workforce - take away the American Express certificates and Alaskan cruises and motivation drops faster than a helium balloon rises. After all, who wants to slog away at work if there's no food in the dispenser?
analyzed the five-year earning potential of each employee, concocted a formula, then went person-by-person and assigned salaries. Profit-sharing potential was set at the same percentage figure for each employee, regardless of salary, based on the company's overall performance. "It wasn't as if we imposed communism,says, "but our company was divided by internal promotions and contests. We weren't working together with a common vision. Managers were fighting over the cost of a new computer because no one wanted to put it on his P&L, and departments were pushing costs from one quarter into the next to make budget. Fundamentally, we eliminated these distractions. Now we have collaboration and cooperation among sales people, and between divisions and departments." And, he says, productivity per person has almost tripled.
The article continued by saying that last year in Portland, Oregon, president and CEO discontinued a bonus program for the 200 employees at Inc., a company that manufacturers decorative brass lighting fixtures. The manufacturing managers, maintains, begged her to discontinue the program because craftsmen were stealing parts from other craftsmen to meet quotas, and workers were pacing the production of fixtures to gobble up overtime, and then working like maniacs to achieve production bonuses.
said that a reward incentive program can create competitiveness, and that's not necessarily best for a company like hers that is growing. "I don't think people are motivated by rewards and bonuses. I think they're motivated because they're excited about their jobs or because they're doing something that provides a service to the world."
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