Why you are probably rewarding the wrong behaviour.

We all want the best for our employees.

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But did you know that rewarding only performance can have a detrimental effect on your company?

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In this article, I'll show you how to find out which behaviours are most important to reward and what rewards would resonate most with your team members.

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To maintain a healthy work environment, it's vital that individuals feel appreciated and engaged in their jobs. Therefore, so many companies invest time and money into employee recognition programs or initiatives - because they understand the importance of positive reinforcement in the workplace. Many don't realise that some types of recognition may be more effective than others when it comes to driving desired behaviours while also maintaining morale amongst staff members.

?Win at all costs

When I first started as a buyer for Australia's largest FMCG wholesaler, our income budget was particularly tight this month.

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At Coles Supermarkets, famous for its intense revenue focus, you were pushed harder than ever before to achieve your goals with no compensation if they were not met your budget.

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The culture at David’s Wholesale was a win at all costs, but the difference was shocking coming from a revenue-based system. - this new environment took some adjusting!

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We heard from the head office that they needed our help with some extra funding, so we sold one of the warehouse forklift trucks for cash. We reported this money as revenue to meet monthly goals!

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I realised that creative accounting was rewarding the wrong behaviour when I wasn't sure what it meant.

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Measuring key behaviours and performance indicators is essential because it allows for the attention to be given to improving those areas that need improvement. It also means that there's no one thing. Instead, an overall change is required across different dimensions--a holistic approach!

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There are three good reasons to introduce KBI’s to your company.

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1.????????Culture Matters! It's not enough to say that your company values and invests in its culture; you need proof if others trust the claims made about them or their environment (even during a pandemic).

2.????????Attract the best. The pandemic is a global issue, and the best talent will be attracted to work in environments where their values align with those of an organisation. If you say we are people first, then how can one prove this?

3.????????Retention. Retaining the right people is vital for a company's success. It makes business sense to keep employees that behave in line with cultural values and mission, as they'll be more likely to stick around longer than those who do not align themselves with these shared beliefs- leading to much better outcomes overall down the road! It can sometimes feel like there are only two options: firing or hiring new staff members; however, retention strategies exist outside this black/white mindset, so measuring and rewarding behaviours leads to results and employees feeling a lot more for filled with the jobs.

?Inputs Vs Outputs

When it comes to your team, you have Key Performance Indicators (KPIs) in place that measures the output and so they know what is expected of them.

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What gets forgotten is the behaviours. It's my experience that performance follows behaviour, which makes it all too easy to judge someone as bad or good based on what you can see and know about them.

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We've all been there before. You're in a meeting, and someone asks for your opinion on how to improve their sales or margin so that they can get ahead of the competition, but as soon as you give them some ideas outside just focusing only on current performance levels; people start looking at you funny because it's clear this person doesn't understand what successful business decision making entails!

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In order words: if we measure success by revenue alone (which becomes evident when companies focus solely upon increasing income), each employee starts thinking like 'MY job title is more valuable than yours'. What was good enough yesterday isn’t necessarily going to be right today.

?Measure what matters not what is easy

It’s easy for businesses to get stuck in a cycle where they measure what's easy and rewarding people who do the same things. But when it comes down to getting results, sometimes you need more than just numbers - which is why KBI can help your company move forward by pinpointing key behaviours that will lead them towards success.

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I have some tools that I can recommend. Firstly, DISC behaviours profiling reports are a great way of understanding your employee's needs and wants in more detail than ever before! Secondly, there is practically measurement software available today, which other businesses use to measure behaviour that is linked to your companies’ values.

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Your team have shown themselves to be trustworthy when working remotely, now is an excellent time for you and your business systems to introduce KBI's into the mix.

If this article has got you thinking about getting started with your team, happy to point you in the right direction. Click the link below and let's talk it over.

Book a 22 min chat.

Thanks

Chris

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