Five Insights for Implementing a Successful Performance and Rewards System

September 22, 2017 | Thought Pieces

One of the most significant trends observed in today’s business landscape is that there are now five generations represented in the workplace: Maturists, Baby Boomers, Generation X, Y and Z. Despite their differences, these generational groups can be very collaborative while working together in the same spaces. However, similarities can only go so far. Employers, specifically HR professionals, should pay attention to the stark diversity across generation groups in terms of values, aspirations, motivations and needs.

An overview of working generations

An overview of the different working generations, as presented in a study by Barclays PLC

The generational differences that exist today affects the way employers provide performance recognition and rewards to their employees. The traditional “one size fits all” approach is no longer as effective, thus pushing employers to better understand the diverse aspirations of their workforce.

See related: 3 Strategies to Boost Employee Engagement

Another pervasive trend is the increased use of mobile devices and social media, with more people moving towards technology-based solutions in the workplace. This breakaway from traditional means have also prompted employers to begin embracing more advanced solutions to meet both employee expectations and business requirements.

Digital Growth in Southeast Asia

The 2017 Global Overview report of WeAreSocial & Hootsuite illustrates the increase in online usage & engagement

Taking into consideration these trends, it is important to ask ourselves today: How do you design and implement a successful Performance and Rewards Management (PRM) system?

Ateneo Cord Talk

In a certification module course for the Ateneo CORD (Center for Organization & Research Development), STORM Product Head Dino Alcoseba shared five insights that must come into play when crafting and implementing a successful Performance & Rewards Management System:

 

  1.  Establish clear mechanics for employees and managers.

Implementing a successful PRM requires establishing clear mechanics. There must be ample knowledge of both types of users: the employees who will utilize the system and the managers who will be managing the system. It is important to determine how users will be rated, who are the key people in the company that can do ratings, where will the ratings show up, what are the KPIs (Key Performance Indicators), and other similar metrics to measure performance.

  1. Overcommunicate.

The success of the system relies on “over communicating” in such a way that working with the stakeholders of the company, understanding their pain points, and knowing the existing channels that the company already use will be helpful in creating a system that will adapt to their vision.  A constant exchange of information is significant in understanding the company’s needs.

  1. Involve multiple stakeholders.

In implementing the system, it is important to involve other departments such as Finance or I.T. The departmental stakeholders who will be managing the system are just as important as the employees who will be utilizing it.

  1. Use technology.

With the digital era, technology will be the main tool in crafting the system. This will allow more processes to be streamlined and automated. However, with this jump from traditional means of doing business, it is also pivotal to conduct training for all key stakeholders in the company to help them understand the usage and management of the technology. As illustrated in the diverse generation chart, there still exists a faction of people who are “largely disengaged” and/or are “early adopters” of technology.  Their acceptance and clear knowledge of the system will be important moving forward that is why it is essential to supply them with necessary information, and engage them with constant communication.

  1. Design for the user.

Listening to the employees and managers’ experience in using a PRM system will be helpful in designing a better one. A problem that may arise is having users who can’t understand how to use the technology despite being given the communication materials and training. Given this, the design must be able to provide a solution and answer a key question: What kind of design will make it easier, faster and more meaningful for diverse users?

In Dino’s years of experience implementing PRMs for STORM’s clients, he illustrates how the process for each one is consistently the same.

It begins with understanding the company’s goals, vision, competencies and culture. He says that, “it is important to know why we are creating the Performance/ Rewards Management system. It has to anchor one goal.” The data gathered here will ultimately have a bearing in the system’s design and it must take into consideration how it will run across different employees of the company, belonging to varied generations groups.

The next step in the process is to conduct testing. He points out how important it is to pipeline the system first with a specific group of employees and managers to gauge how they feel about the system. As soon as the system is launched, the need to constantly measure results and to pivot will be crucial for its improvement.

Understanding all these trends and these insights are key for any business looking to improve the way they keep employees engaged and sufficiently rewarded. A tailored PRM system that addresses multi-generational needs will create a significant impact not only to the happiness index of a company but also to its success.

 


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