Performance incentive for employee

May 28, 2021

We have read, in the social media or hear from our customers, that our employees have performed below the customers’ expectation.

You may have a comprehensive SOP for your staff to follow, but the execution part is always a challenge. If you are a SME, you may not have a supervisor to monitor the junior staff’s performance, or even the supervisor may also breach certain rules.

If it is not serious, staff will apologize every time a mistake is made and employer will move on, and repeat again and apologize again and again, getting away every time without any consequences, until some thing major happened and employer will have pick up the pieces. Staff can resign, but employer cannot.

I recently was involved in a project where the company actually offer monthly performance incentive for their staff in different roles (sales, admin, purchasing), whereby X dollars are given if no mistakes are made during each month. 

All mistakes to be avoided are clearly stated and Y dollars to be deducted if made by any staff. Example, if anyone takes leave during their shift, $Y  will be deducted and given to the colleague who took over. And it works quite well in fact.

There are a few factors to consider to implement this
1. Administrative cost
2. Quantum of incentive to motivate 
3. Update of the SOP
4. Additional cash flow 
5. Announcement to all staff of a breach? So that every staff learn or reminded

It may work for some and not for some, but it is worth considering, for the fact that the staff must be aware that there must be a consequences for any wrong move made by the staff and not getting away with it. It may not be a one size fits all, but a good start to measure the staff performance on a monthly basis.



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