Reward principles not pocketbooks!

 

Image source: http://www.jasonstapleton.com/the-power-of-principle/

(originally published on LinkedIn)

People are, well people. We do like recognition. It's a human sort of thing. We all stand a little straighter and sound a little more confident when we are recognized for the good work we do. It's a natural reaction. The only question is the form that the rewards will take.

If you subscribe to Scientific Management Theory of Frederick Taylor the answer would be to reward the pocketbook. That works well with mostly manual types of work. The trouble with the theory beyond manual work is that knowledge workers have a different set of motivators and this is especially true with the new workforce. There are three factors in play.
 
First, we need to recognize the changing demographics of the workforce – the new workforce doesn’t have the same motivators as prior ones. This new generation of workers tend to hate hierarchies and will often seek out less hierarchical organizations – sometimes for less money or for less perceived upward mobility. Traditional hierarchies are the complete antithesis of what motivates them.
 
Second, we need to recognize the shift that values collective intelligence over individual intelligence –the smartest organizations are now the ones that know how to aggregate and leverage their collective intelligence by designing organizations not as top-down hierarchies but as powerful collaborative networks.
 
Third we need to change the performance and compensation systems – as the shift to valuing collective intelligence over individual intelligence and the manifesting of collaborative networks takes shape, performance and compensation systems will also need to be replaced by ones that support the new motivators and drivers of the modern workforce – and surprise, it isn’t just monetary.
 
People want a sense of belonging, of being valued, of feeling like they are making a difference – for them principles matter. A recent survey found that “83% of employees said recognition for contributions is more fulfilling than any rewards and gifts” and “71% said the most meaningful recognition they have received had no dollar Value” (see: http://badgeville.com/announcements/study-on-employee-engagement-finds-70-of-workers-don%E2%80%99t-need-monetary-rewards-to-feel )
 
Jurgen Appelo’s Management 3.0 talks about using Kudo Cards to recognize people. To quote Appelo:
 
“There is a constant need for organizations to give thank-yous for jobs well done, small tokens of appreciation, a written memory of when your coworker made you laugh so hard you spat coffee, or a recognition of just stellar teamwork. But it’s the recognition of valued work, not financial incentives, that encourages intrinsic motivation within an organization.”
 
So reward principles – not pocketbooks if you want high-performing teams!