Rewarding top performers is a crucial part of people management. It can boost motivation, retention, and productivity, as well as reinforce your company culture and values. But how do you reward top performers in a way that is fair, meaningful, and effective? Here are some tips to help you design and implement a rewarding system that works for your team and your goals.
The first step to reward top performers is to define what performance means in your context. You need to set clear and measurable goals that align with your company vision, strategy, and expectations. These goals should be SMART: specific, measurable, achievable, relevant, and time-bound. You should also communicate these goals to your team and track their progress regularly. This way, you can provide feedback, recognition, and support along the way, and avoid any confusion or ambiguity about what constitutes high performance.
The second step to reward top performers is to use a mix of rewards that suit their preferences, needs, and achievements. Rewards can be intrinsic or extrinsic, monetary or non-monetary, individual or team-based, formal or informal, short-term or long-term. You should try to balance these different types of rewards and tailor them to your team members' personalities, motivations, and values. For example, some top performers may appreciate a bonus, a promotion, or a flexible schedule, while others may prefer a personal note, a public praise, or a learning opportunity. The key is to know your team and what makes them happy and engaged.
It's crucial to know each individual on a personal level to determine the form of reward that will both be enjoyable for them and also encourage continued excellence. In my experience when working with a new direct report, I like to ask point blank what types of rewards motivate them the most and why. Through their explanation, I'm able to see what they value most in the reward (i.e. public recognition, feeling valuable to the team, being viewed as a leader, etc.). I also find it helpful to ask for examples of managerial styles they have worked with that worked particularly well, and ones they didn't enjoy as much. Through this, I'm able to learn about what the individual values most in terms of relationships, coaching, and rewards.
The third step to reward top performers is to be consistent and transparent in your rewarding system. You need to establish clear and fair criteria for rewarding performance, and apply them equally and objectively to all team members. You should also communicate your rewarding system to your team and explain how and why you reward top performers. This way, you can avoid any perception of favoritism, bias, or injustice, and foster a culture of trust, respect, and accountability. You should also solicit feedback from your team and adjust your rewarding system as needed.
The fourth step to reward top performers is to celebrate their achievements and share their success stories with the rest of the team, the company, and the clients. You can use various channels and platforms to showcase their work, such as newsletters, social media, blogs, webinars, or events. You can also invite them to share their insights, tips, and best practices with their peers and mentors. This way, you can not only recognize and appreciate their efforts, but also inspire and motivate others to learn from them and follow their example.
The fifth step to reward top performers is to encourage their growth and development. You need to provide them with challenging and meaningful work that matches their skills, interests, and aspirations. You also need to offer them feedback, coaching, mentoring, and training opportunities that help them improve their performance and reach their potential. You should also support their career progression and help them explore new roles, projects, or domains that suit their goals. This way, you can not only retain and reward your top performers, but also prepare them for future leadership and innovation.
The sixth and final step to reward top performers is to reward yourself as well. You need to acknowledge your own role and contribution in leading, managing, and developing your team. You also need to celebrate your own achievements and milestones, and reward yourself with some self-care, gratitude, and fun. You should also seek feedback, recognition, and support from your own manager, peers, and mentors. This way, you can not only maintain your own motivation, well-being, and performance, but also set a positive example for your team and others.
Assessment should be transparent and impartial, Top performer should be awarded in the form of cash / gift card/ elevated to next level. Bring the competition spirit within the organisation/ team by announcing top performers contribution towards business benefits to motivate individual performance and set higher standards.