Reward Schemes, HR and the Credit Crunch

The current 'credit crunch' has got business ownerslong-term goals, i.e. not ruining the economy. Reward
across the country looking for ways to motivateschemes have engendered a culture of risk-taking
their employees into going 'above and beyond the callthat unsurprisingly couldn't last. This is a warning to
of duty'. In hard times we all have to work harder,everyone; employees will be happy to aim for any
and business owners know that in order to surviveextra money that's offered to them, and it's up to
unscathed this year they're going to have to knucklethe company to make sure these aims are correct.
down. Sometimes this means making cutbacks inWhilst it's unlikely that reward schemes within your
outgoings i.e. redundancies, but sometimes employerscompany could have effects on a similar, global scale,
would prefer to motivate their staff in order tothe fact remains that you, like the banks, will have to
make sure business grows despite the slowdown.plan your measurements carefully to focus on the
One way to motivate employees is to implement aright goals. This is where HR comes in - human
reward scheme. The idea is that good work gets youresource professionals understand what motivates
a financial reward and in these economic timesemployees and also what direction businesses should
employees will be happy with the potential for extratake when it comes to employee relations. An HR
money on their payslip. A reward scheme also hasconsultant can help you to plan and implement your
the knock-on effect of acting as a measuring-stick. Ifreward scheme so you don't lose sight of the end
an employee consistently doesn't get any rewards,goal. They'll also cover things like what to do if it
either they really don't care about the moneyturns out your employees are abusing the system
(maybe they just want an easy life!) or they're notwhich is an unsavory but most possible outcome of
working as hard as everyone else. Reward schemesany scheme were money is involved.
set goals by which to get rewards and a cleverIf the big banks had planned their reward schemes
employer will also make these goals a part of anproperly and not focussed on such short-term aims,
employee's personal development. That way theit could be that we wouldn't find ourselves in this
employee has to aim for them or risk failure.mess. HR will help you to find the right goals - even if
The funny thing is that reward schemes havethese are long-term they'll ultimately be sustainable
actually been blamed for the situation we now findfor your business. Sometimes it's easier to let an
ourselves in. City workers after all were offeredoutside agency help - they can take an objective
rewards for making money on certain trades, whichview of your situation and give impartial advice. They
is why they all got so rich so quickly. Thesefocus on what's necessary, not what's easily
short-term goals, i.e. getting the reward, took theachievable.
emphasis away from (it turns out) more important