Reward Systems

Step 2: Devise Comprehensive Metrics

Rewards are easy to get excited about. Most people hear far too much about the goodies everybody else seems to be getting—bonuses, stock options, runaway CEO compensation, and the like—so when a consultant offers to bring your reward system into the twenty-first century, he usually gets a friendly reception. Measurement is a different story. Chances are, your organization has revamped its performance appraisal and review systems more than once in recent years with no discernible gain in employee satisfaction, and most people have little interest in going another round. That’s too bad, because starting at the wrong end—adding to the power of your reward system before upgrading your metrics—is a big mistake. ...