How do you reward good work and improve poor performance?

1 Set SMART goals

The first step to rewarding good work and improving poor performance is to set clear and realistic expectations for your employees. SMART goals are specific, measurable, achievable, relevant, and time-bound. They help you align your team's efforts with your organizational vision and strategy, and provide a basis for evaluating and rewarding performance. To set SMART goals, you should involve your employees in the process, communicate them clearly and frequently, and review them regularly to track progress and adjust as needed.

2 Provide regular feedback

Feedback is the fuel that drives performance improvement. It helps your employees know what they are doing well, what they need to work on, and how they can grow and develop. Feedback should be timely, specific, constructive, and balanced. You should provide feedback not only during formal performance reviews, but also on an ongoing basis, such as in weekly or monthly check-ins, project debriefs, or informal conversations. You should also encourage your employees to seek feedback from their peers, customers, and other stakeholders, and to share feedback with you as well.

3 Recognize achievements

Recognition is one of the most powerful ways to reward good work and boost employee engagement and satisfaction . Recognition can be formal or informal, monetary or non-monetary, individual or team-based, public or private. The key is to make it meaningful, authentic, and consistent. To recognize achievements, you should link them to the SMART goals you set, acknowledge the effort and impact of your employees, and celebrate them in a way that suits their preferences and personalities. You should also create a culture of recognition where your employees appreciate and praise each other for their contributions.

4 Address poor performance

Poor performance can have negative consequences for your organization, such as lower productivity, quality, customer satisfaction, and morale. Therefore, you should address it as soon as possible, before it becomes a bigger problem. To address poor performance, you should identify the root causes, such as lack of skills, motivation, resources, or support. You should then have a candid and respectful conversation with your employee, where you explain the performance gap, listen to their perspective, and agree on an action plan to improve. You should also monitor and follow up on the action plan, provide coaching and feedback, and recognize any improvement.

5 Promote learning and development

Learning and development is essential for rewarding good work and improving poor performance. It helps your employees acquire new skills, knowledge, and competencies, and enhance their career prospects and potential. Learning and development can take various forms, such as formal training, mentoring, coaching, job rotation, shadowing, or self-directed learning. To promote learning and development, you should assess the learning needs and goals of your employees, provide them with relevant and accessible opportunities and resources, and support them in applying and sharing their learning.

6 Review and revise

Performance management is not a one-time event, but a continuous cycle of setting, reviewing, and revising goals, feedback, recognition, and improvement. To review and revise your performance management practices, you should evaluate their effectiveness and impact, solicit feedback from your employees and other stakeholders, and identify any gaps or challenges. You should then make any necessary changes or adjustments to your performance management system, processes, or tools, and communicate them clearly and transparently to your employees. You should also celebrate your successes and learn from your failures as a leader and a team.

7 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?