You Kidding... A Back Scratcher?

Pay-for-performance programs are not new - they were the rage in the early 90s.  Ahh, the good old days of "rank 'em and yank 'em."  However, with the recent surge in talent management integration, both technologically and organizationally, pay-for-performance programs are experiencing a renaissance.

A recent article on the subject contained the following:

The vast majority of employees, in general, also want pay-for-performance.  While they may not think their current pay system is unfair, they do think pay-for-performance is an opportunity to make it more fair.  They think they can outperform what ever pay they are getting; they usually assume they will benefit in terms of higher pay.

The catalog of incentive and performance-based reward programs is packed with bonus cash, gift cards, tote bags, chocolate baskets, fruit baskets, travel vouchers, and, well... teaser gifts.  What is a teaser gift?, you ask.  A teaser gift isn't the actual reward you could earn, but a sample that will, and I quote "get your team excited and motivated about things to come."  So, a handful of chocolate covered almonds and a "personalized" coffee mug fires up the troops, eh?

And, every year companies large and small tweak, re-do, scrap, adjust, re-deploy, fine-tune, revise, amend, adapt and/or update their pay-for-performance, incentive and commission programs.  Ever wonder why? 

Re-read the excerpt from the article... anything stand out?  Your employees already believe they could outperform and thereby out earn their current levels!  Your employees are holding back on you!  They could perform better, they just don't... well, they just don't see a reason to.  But an acrylic pen holder/clock/photo frame with an etched company logo is sure to "fire up the team."

What if your employees knew exactly what was required to advance in your organization?  What if they knew the skills, competencies and experience they needed to develop and posses to navigate a clear career path to earn the compensation and position they desired?

If employees inherently believe they can achieve the challenges before them, and the knock on incentives is they often create an environment focused on personal, rather than organizational goals, wouldn't it make sense to clearly lay out how your employees can earn the next level of pay or position instead of that sweet fleece pullover (with company logo - of course)?