Editor's Note: Yeah, you know what we're talking about - because I'll bet you've seen this in your own place of work. Screwy organization structure, reporting relationships, job design and policies and procedures (to name a few) create such issues that leadership is "forced" to request your assistance in designing an incentive plan to fix the resulting problems. This is our call to Design Incentives Responsibly.
You probably know the drill.
Management says that they are going to put in an incentive plan to improve productivity. What's really happening is that they are trying, through the sheer power of financial inducements, to drive people to figure out how to push product out the door in the face of poor internal systems, dysfunctional management practices and a culture that punishes those who challenge authorities and make waves.
And then it is the incentive plan that gets the bad rap when it doesn't prove successful in "motivating" people to push through the brick walls that the organization has erected in their paths. Or because some people, in an effort to earn an award against difficult odds, devise creative and unanticipated means for moving the performance bar.
So when a manager approaches you with the request that he/she needs to put an incentive plan in place in order to get people to do "X", I would submit that your first question (in an appropriately sincere and service-oriented tone) might be:
Why aren't people doing X now?
Then:
What kinds of things do you think get in the way of doing X - what obstacles and challenges do people encounter when they try to do X?
And, finally:
If we put an incentive in place tied to doing X, what will people likely do in an effort to overcome these obstacles and challenges and earn an award? Is there a possibility of any undesirable behaviors and outcomes as people try to achieve X in the face of these obstacles and challenges?
Granted, not every manager will sit still for this conversations, but the better ones will. I have found it educational, insightful and even entertaining to push this simple conversation through to its conclusion.
And, best of all, you'll be setting the stage for the important and ultimately more productive conversation about the true nature of hurdles to employee performance and how best to address them. (Hint: Incentive pay may not be the answer.)
I do acknowledge that there are times and situations where everyone in the organization is up against difficult, even impossible odds, and an incentive plan can be the centerpiece of a strategy and partnership for moving forward together. Too often, however, incentives are an ill-informed or even lazy choice by leaders who are unwilling to do the heavy lifting involved in actually managing the performance of employees.
Incentives are a powerful tool. Let's do what we can to ensure they're designed and implemented responsibly!
Ann Bares is the Founder and Editor of Compensation Café, Author of Compensation Force and Managing Partner of Altura Consulting Group LLC, where she provides compensation consulting and survey administration services to a wide range of client organizations. She earned her M.B.A. at Northwestern University’s Kellogg School and enjoys reading in her spare time. Follow her on Twitter at @annbares.
Creative Commons image "Overcoming Obstacles" by the U.S. Army
Comments