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Adding an ‘Employee Efficiency Bonus’

It is just so tempting! Your employee does something stupid- loses tools, breaks something or foolishly get’s lost driving. Grrr! So you want to “dock their wages” and “make ’em pay”! Don’t do it! Why not?

In most states A) deducting money from a worker’s base pay is illegal plus B) it is very demotivating to ONLY focus on the negative stuff. However, I’m not a big fan of creating ‘entitle employees’ by giving ‘automatic raises’ either! Instead…

Get your staff excited and focused on efficiency (PROFITS!) when you…

Set up a baseline Employee Efficiency Bonus (EEB) that both holds your workers “accountable” AND rewards good job performance.

NOTE: In most states an employee’s bonus can be adjusted up OR down based on their job performance. (Accountability at last!) However, have your local attorney approve any new employee compensation scheme BEFORE implementing it. (Constantly tweaking employee’s pay becomes VERY demotivating for your work force.)

Make your EEB tracking period long enough to be fair but short enough to give “Immediate Gratification”. For example, give a base monthly bonus (say $150.00) and then add to or take away from this amount based on the employee’s performance.

EEB “Add-ins”: Making a Customer Cheerleader, great client job evaluations, signed Stay Beautiful contracts, being on time for an entire month, on site sales of “Additional Service Options”, etc. Use the principle of “Goal Directed Behavior” here and ask yourself “What do I want my employees to focus on?” Then simply publicly recognize and reward these accomplishments.

EEB “Take aways”: Being late, lost tools, forgetting equipment marked on their Production Day Sheet, damaging customer’s possessions, client complaints, etc. As Tom Peters famously said, “What gets measured gets done!”

Share how you motivate and reward your workers in our Strategies for Success: Growing Your Business Facebook Group. (You don’t have to be a SFS graduate to join us.)

Steve

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2 Responses to Adding an ‘Employee Efficiency Bonus’

  1. Jennifer D. August 7, 2013 at 3:15 PM #

    Steve,
    We find that good communication and kudos are really good motivators. Recognizing your employees simply for a job well done via social media and posting a “brag board” in the office have been successful for us.
    No matter what people say, everyone loves to be given a genuine “Attaboy.”

  2. Steve Toburen August 11, 2013 at 7:28 AM #

    I couldn’t agree more, Jennifer. It is crazy that more employers do not consistently use Sincere Recognition in dealing with employees. Simple, quick, highly effective and best of all Sincere Recognition is FREE!

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