A discussion on the benefits and drawbacks of the performance related pay system

Uses, Benefits, and Concerns No one engaged in any part of health care delivery or planning today can fail to sense the immense changes on the horizon, even if the silhouettes of those changes, let alone the details, are in dispute. The needs are quite broad:

A discussion on the benefits and drawbacks of the performance related pay system

Enter your email to reset your password Or sign up using: Sign in if you're already registered. Here are some simple, low-cost ways to recognize your top performers.

Getty Everyone likes to get a pat on the back for a job well done—especially if that pat includes some type of bonus or other financial compensation or recognition before colleagues. Businesses often face the dilemma of wanting to recognize employees' efforts and performance, but during difficult financial times they may have very limited budgetary resources to do so.

However, rewarding employees and motivating performance does not always require a tremendous outlay of money. You may be surprised to learn that if you were to ask some of your employees they may actually prefer other types of recognition.

A discussion on the benefits and drawbacks of the performance related pay system

Starting an employee rewards and recognition program can be overwhelming at first. And the task can seem impossible when you are trying to figure out how to incentivize employees to perform well while staying within a tight budget.

In tough economic times, however, small and mid-sized businesses must keep in focus what they want to reward while being creative in coming up with ways to keep the troops happy.

Cooper, chair of the labor and employment group of Garvey Schubert Barera law firm based in Portland, Ore.

A discussion on the benefits and drawbacks of the performance related pay system

Rewarding Employees on a Budget: Your Goals Your purpose in creating an employee rewards program may be to create some acknowledgment and motivation for your company team. The purpose behind a recognition program is to help motivate your employees to earn the rewards and ultimately help you meet business goals.

Here are steps you can take to design an effective employee rewards program: Identify what you want to reinforce. The first step you need to take is to identify the activity or activities that you seek to reward.

This can include job performance, such as achievement of sales targets or product development goals or meeting customer timetables ahead of schedule. You can also choose to reward behavior, such as exceptional customer service or team work or leadership.

Do you want to reward stellar behavior that serves the best interests of the company? Do you want to reward employees who put forward suggestions that improve the functioning of the company or save the company money? Do you want to reward individual employees or teams? The goals of your employee rewards program can only be met if you get staff "buy in" or participation.

If you have budget constraints, let employees know so that they are more creative with their suggestions. Make sure it works for the company. There's no point in starting a recognition program that is not going to motivate employees or help you achieve business goals.

Drawbacks | Green Garage | Page 15

So in addition making it work for employees, you have to make sure that it works for the good of the company. That's why it's so important to put thought into the methods of recognition you use and how effective and practical they are for the company.

What works for one company may not work for another. Personalizing Recognition Rewarding Employees on a Budget: Types of Rewards There's an old saying in business that money speaks louder than words. Hence the traditional practice in business of rewarding exemplary employee behavior with bonuses, raises, stock options and other types of financial remuneration.

But money is not the only way to recognize employees and surveys have found that some workers actually prefer a more personal "thank you" note, being singled out in front of colleagues, or other forms of recognition. During a recession or prolonged economic downturn, however, financial rewards may be highly prized by your staff.

People enjoy being thanked for their work. In fiscally tough times, financial rewards are not always feasible. Employers have to be more creative about how they go about recognizing the good work. Some types of ideas include: Sometimes the most meaningful form of recognition involves some type of opportunity as proof that an employee is valued by an organization.

Opportunities can range from being asked to sit on a panel discussion on your manager's behalf, an educational or mentoring opportunity, or being sent to an industry conference, Ventrice says. Another meaningful form of employee recognition is giving that person exposure to the rest of the staff, to important clients, or to others in their field.

This can include everything from being pointed out as the most creative software developer of the month on an in-house bulletin board to being invited to lunch with the boss and one of the company's key clients. Create an employee-of-the-month parking space.Even General Electric, a long-time proponent of the performance - pay linkage model and all the related processes and templates that go with it, is currently reinventing itself in this arena.

They are considering options ranging from dispensing with the entire model to a more gradual shift over time. Before implementing such a system, it's a good idea to review the advantages and disadvantages of each.

Advantages A merit system is most applicable when there is detailed data available to measure the performance of employees. Finally, the HRM process helps to identify performance goals, correct performance problems if necessary, and help employees sustain a high level of performance (e.g., performance appraisal, compensation and benefits, and safety and health).

A third of financial services companies, for example, made a major change in their performance measurement system during the past two years and 39% plan a major change within two years. Advantages and Disadvantages of Employee of the Month. By. Chitra Reddy.

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Pinterest. WhatsApp. Organizations pay to get their work done, if the work done by the employees is the best, then ultimately organization is making a profit. Though it has certain benefits, it is harmful if not executed well. Dec 20,  · There are five problems I see again and again which stop organisations from reaping the rewards of their performance management system: A .

What are the advantages and disadvantages of performance related pay