Staff assessment programs if properly implemented and administered are an important part of any business owners’ strategies and systems.   Self-assessment programs, coupled with incentive programs will enable both the employee and employer to understand the objectives and goals of each party tend to breed a strong team culture.  One of the most common complaints which comes up in job satisfaction surveys is the employee never gets useful feedback on how they are going with their job.

Most companies today use performance appraisal systems or annual performance reviews often coupled with salary reviews however these processes were invented decades ago in a much slower business economy.  In addition, measurements in place in these traditional appraisal forms are typically arbitrary and subjective.  

In today's fast-paced economy an effective performance appraisal should be short, (say) no more than 10 minutes and focused on the results expected, from the employee's current position, and how effectively the employee’s current goals are being met.

For example, a project manager may have a number of different results which are expected from his or her performance – e.g. Is a project on schedule?  Is it under budget?  Are the company’s quality standards are being met?  Is the customer satisfied?  Are the employee expenses in line with where they should be?

All these results can and should be measured consistently.  

Intangibles can also be measured such as morale (through employee surveys, workplace absenteeism, turnover) leadership (such as productivity development of people and problem solving skills) and work ethic (goals being met and challenging projects completed in a timely fashion).

Incentives and bonuses are very powerful and motivate a team however the incentive scheme should be something that is earned rather than expected.  

To put this into context the incentive must be built around key performance indicators (KPIs) which are easily recognized and totally transparent to the employees.

Key points in establishing an effective bonus or incentive scheme include:

• Identify the company's goals and how the individuals and their respective roles are an integral part of its success.

• Identify clearly the rules of how the incentives will be paid

• Identified clearly the amount of money which is available for incentives so employees can understand how everyone can participate

•  Everybody should participate in any incentive scheme from the most junior or newest team member to the most senior.

• Provide progress reports to the team on how the company is tracking in connection with any incentive payment  goals

• Bonus payments are segregated from the weekly wage or salary and the incentive must be earned by the employee.

•  Bonus payments should be paid by the company from profits not sales or turnover.

• Payment of bonuses should be clearly identified with each employee and they need to understand how the payments are made.

• If possible, give employees a choice as to how the incentive is paid e.g. regular additional income, superannuation contributions and so on.

YBM is well versed in establishing attractive incentive schemes for businesses which are not complicated to operate administratively and are effective in the hands of the employer.