These kind of variable pay systems have little to no effect on the motivation of employees. For someone to get above the average raise for the company, someone else must get below. There is no way the entire team can win. Wandering' Around does not influence performance A third way to reward employees is by verbal, visible and non-verbal feedback. The annual performance appraisals are not specific and an impossible instrument for motivating employees and directing behaviors.
Critical behaviors have to get reinforced immediately and directly.
Productive initiatives have to be rewarded personally and sincerely. Traditional compensation reinforces political behaviors. Traditional compensation reinforces lone-ranger behaviors and grandstanding as opposed to teamwork. All rights reserved 1999, 2000.