Definition: Using both tangible and nontangible rewards to keep employees
enthusiastic, loyal and interested in continual improvement
It's hard to overemphasize the importance of having
enthusiastic, committed employees. A well-motivated work force will
almost always allow a company to grow faster than one that's
lackadaisical or even prone to sabotaging your growth
initiatives.
Everybody who works for you needs to know where they stand and
how they're doing compared to your expectations of them. Many
companies have formal review systems to let employees know how
their performances stack up. Reviews may be conducted as often as
every three months, but annual reviews are most popular.
Each review should go over the goals that were set when the
employee started the job or during the last performance evaluation.
Then the review should examine how well the employee has done
toward reaching these goals. The employee should be asked to rate
his or her performance, in addition to relying on objective
measurements such as sales figures. You and the employee should
then discuss the desirability of trying to reach goals that haven't
yet been achieved, and you should both set goals for the
future.
But reviews and evaluations are--often justifiably--viewed as
little more than formalities that accomplish little or nothing in
the way of true feedback. To make formal evaluations go more
smoothly, and to eliminate any surprises on the employee's part,
give feedback at the time something occurs to warrant it.
Don't underestimate the power of feedback. It should be simple,
honest and unfailingly constructive. Try to make sure that every
piece of feedback you provide contains the following elements. It
should:
- Highlight something good the employee has accomplished
- Point out something that needs improvement
- Contain specific suggestions about how the employee can
improve
Don't neglect to say something positive. Even making note of the
amount of effort the employee has expended can make the employee
more receptive to feedback. If you can't think of a positive
comment and specific suggestions for improvement, it's better to
say nothing.