Business and Management

Essential Basic Elements Of Employee Incentive And Reward Systems

Are you looking for a system of employee rewards and incentives that are both effective and satisfying? You need to make sure you have covered all the basic elements for managing and planning effective employee rewards systems.


Performance improvement is the purpose of rewards and incentives. This may seem obvious. It may seem obvious. But performance should be the main focus of your system. Performance is simply defined as job results. It is the foundation of every system. Remember to reward both individual and team performance.

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People are paid to achieve certain levels of performance. You can use incentives and rewards to reward those who exceed your minimum standards. One problem is when you give extra rewards for work that is not "normal". This basically tells employees that they are good enough. They cease striving to be better performers.


Absolute transparency is crucial, no matter what you choose to reward. Each participant should know how the system works. Participants should be able to monitor their progress and those of others. Insufficient transparency can lead to suspicions of bias or favoritism in the system. Employees should be involved in setting transparency parameters and discussing methods for reporting progress.


Many reward and incentive programs recognize employees who have achieved outstanding job results. Many people don't recognize the hard work of the staff that supports high-achieving employees. Without this support, the "stars" of performance wouldn't be able to reach the highest standards. Support staff should be involved in the system's rewards when it is built. They are also part of the team that succeeds.

Flora Wilson