Monitoring employee performance, and providing rewards for stellar performance, is an essential management component. The act of establishing performance benchmarks is used to continuously push employee improvement. When properly executed, benchmarks increase efficiency and health competition. Combined with a comprehensive reward system, benchmarks serve both the business and employees. However, a reward system is only as beneficial as its related benchmarks. Business owners and managers must carefully approach the establishment of benchmark metrics. Set the bar too low, and reward systems transform into entitlements. Set the bar too high, and employee morale will suffer. Therefore, the formulation and implementation of benchmarks and reward systems are paramount for success.
In many total reward statement examples, rewards are based upon specific performance metrics. However, before establishing these metrics, managers must examine core processes. This method identifies what aspects of performance should be measured. It's only when these core business processes are identified that appropriate benchmarks may be established. A total rewards statement example may include rewards based upon sales or repeat customers. However, these metrics must adhere to realistic growth projections. To keep employees reaching for higher reward tiers, establish tired benchmarks. For example, an employee receives Reward #1 for selling four products. However, Reward #2 is given when an employee sells six products. This small increase makes higher rewards attainable and beneficial - for employer and employee.
In order for performance benchmarks to be effective, they must be time sensitive. A definitive start and end date is common among most total reward statements examples. When establishing timetables, its duration must be long enough to encourage under-performing employees. For example, an employee who's notoriously slow in his performance may be discouraged if metrics are unattainable. The goal is to establish encouraging benchmarks. It must be just challenging enough to support increased performance. This is a fine line for all businesses.
A executive benchmarking typically includes various rewards for different employee positions. Regardless of employee level, an organization must establish a resource center. Imagine these resources as a "help desk." Its primary goal is to assist in reaching established benchmarks. After all, benchmarks ultimately benefits the profits and productivity of a business. Therefore, all business owners must strive to support employees in reaching each benchmark. The biggest mistake one can make is establishing performance benchmarks only attainable by a small percentage of workers. Utilize benchmarks, and its total reward system, as a means of increase employee skills.