Fuel high performance through rewards: Phani N. Raj
Modern day practices have tilted the axis towards performance outcomes, with high performance behaviours being the next generation
Recent years of stunted global economic growth has orchestrated radical changes in the way businesses run. From accounting practices and governance systems to HR policies and practices, all of these are driven with very fresh perspectives today. The rising prominence of Gen Y has substantially catalyzed these new perspectives and given business strategy a new body suit.
The rise of rewards, recognition and performance incentives has been most significant in the recession affected industries. While traditional reward practices focused more heavily on service milestones, modern day practices have tilted the axis towards performance outcomes, with high performance behaviors being the next generation. Most new economy companies like telecom and information technology firms are amidst the realization that a behavioral focus is more impactful than a KRA/ KPI based focus. Rewards & recognition frameworks thus form the ideal vehicle to drive key organisational behaviors that would consequently result in much more than the achievement of KPIs.
While many younger organisations are beginning to build frameworks for rewarding performance and service milestones, the introduction of new generation reward management tools in the market is enabling large organisations to align their rewards programmes to critical organisational contributions. From building a culture of CSR, stimulating knowledge sharing, enabling easier acceptance to organisational changes to managing the leadership pipeline, rewards & incentive programmes are beginning to flow into newer territories amongst the larger and mature knowledge workforces. Sales driven businesses have also taken a strong cognizance to the long-term benefits of a good sale, typically defined as one that is profitable, sustainable and has a positive impact on the company valuation in more ways than one. Traditional sales incentive plans are being reinforced with the attachment of reward points that are founded on the ingredients of the quality of sale. Furthermore, rewards programmes are being used to give focused direction to the sales force and enable them to leverage the right resources required to fulfill sales targets.
Another fundamental change, which has emerged as a strong supplement to the increasing role of R&R in driving performance based milestones, is the shape and structure of the rewards catalog. Emerging trends in industry practices indicate that the dynamics have now shifted more towards experiences that translate into memories. The enhanced impact created by the experiential nature of rewards has made adoption of these metric and performance based schemes much easier and faster. While motivation will continue to be a key denominator, aligning with measurable organisational outcomes is the new role of R&R.
Phani N Raj, Founder & MD, eYantra