Surprising News about Bonuses that Really Engage Employees

Bonuses that Really Engage Employees

Most leaders want to use bonuses that really engage employees to strive to do their best work and be loyal over the long-term.

Talent management strategies and total rewards programs typically hand out bonuses to spur motivation and reward high performance. Most often these bonuses come in the form of financial gifts and the recipients are expected to spend the money on themselves in a way that makes sense for them.

But do these monetary rewards achieve leadership’s objective of encouraging improved behavior and higher levels of performance?

Some employee engagement training specialists say that the opposite is true.  Why?  Because the other employees (the ones who do not receive the rewards) are apt to be jealous and competitive and thus damage the very team dynamic required for higher performance.  Additionally, research by Tim Judge found less than 2% overlap between pay and employee engagement levels and the Journal of Business Research found rewarding team performance improves overall results.

What type of bonus does work to lift performance?  How should leaders use bonuses that really engage employees?

Surprising to us, studies show that giving bonus vouchers that can be re-directed to the recipient’s favorite charity actually results in happier and more engaged employees overall. Another kind of bonus that works is monetary gifts that are to be spent on other employees. Think about throwing a team party or catering a Friday picnic lunch or happy Hour. Bonus winners are heroes and their entire team gets to enjoy the benefits of their success.

Our Take
A good balance of individual and team rewards that align with the overall strategy and culture is a good place to start.  For some corporate cultures and performance environments, bonuses aimed at charities and team events can certainly play a role in increasing employee engagement levels. Beware however to make sure that your top performers feel like their individual contribution is being fairly valued and rewarded.  To maintain high levels of employee engagement, your top performers must believe that if they contribute to the organization’s success, they will be recognized and that considering the value they bring to the organization, they are rewarded fairly.

As long as your reward and recognition systems are aligned with your strategy, are perceived as fair, and disproportionately reward your top performers in terms of results and behaviors, you will have the opportunity to creatively engage and motivate your top talent to perform at their peak.

To learn more about creating a high performance culture, download 2 Leadership Moves to Create a High Performing Culture

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Firmware Engineering Manager

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Senior Marketing Manager

Samsung

LSA’s Employee Engagement Consulting and Survey work has provided critical visibility into: how well our people are holding up under the general economic environment, as well as, the specific challenges that face biotechnology companies in their efforts to discover and develop new medicines; their level of alignment and commitment to XOMA’s Vision and mission critical strategies; how leadership practices and management systems support an environment that engender commitment, and the specific actions that our leaders can take to improve on areas that are important to our people. I highly recommend LSA’s employee engagement solutions.

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Vice President, HR and IT

Here’s a token of my appreciation for ALL your efforts. I’m offering my most sincere appreciation, and it extends to all the folks who made our customized management development programs possible.

Susan Anderson
Workforce Planning Bureau

I had been working with LSA for many years with my prior company. Currently, I’m with a company who hadn’t done much basic management skills training. After identifying and presenting a program recently, our managers are excited and talking in the halls about the great experience. LSA saves us time in delivering the right training for our needs.

Phyllis Moracco
HR Director

LSA’s consultant designed and delivered a half-day team building solution for our recent conference. It included careful customization to integrate the design with our new mission and values. Everyone had fun and identified key issues with our teamwork. Altogether a great program!

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Director of HR

Hyperion has a commitment to lifelong learning. LSA helps us provide the right business sales training, management training programs, and leadership development programs at the right time to meet the needs of both individuals and departments. I especially appreciate their ability to listen to my needs and recommend the appropriate facilitators, solutions and content.

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Hyperion

In the Next Generation Management Development courses, I was trained with skills and tools that have made me and my team more productive, motivated, and successful at communicating with other departments.

 

Kevin Ashman
Firmware Engineering Supervisor

The refreshing thing about LSA is that they focus on understanding our business situation and helping me succeed instead of selling a product. With over 150 experts, they are an invaluable resource that helps me deliver higher quality results faster. I recommend them to anyone looking to improve the performance of their workforce.

Stacie Rodgers
VP of Human Resources

Cutera

LSA’s approach and ability to bring the best resources to eBay has been a great asset. They really focus on helping us succeed in any way they can and are very flexible in meeting our management and talent needs.

Mike Normant
Learning & Development

ebay

LSA has become the gold standard in team building and management training at Genomic Health! I have a hard time finding facilitators that come close to their level of customization, expertise and experience.

Emily Couey
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Harmonic has worked with LSA for over 8 years. We have found their partnership extremely beneficial. We recently implemented a Management Development Program that was designed and customized to support our company’s strategic initiative of hiring, building, and retaining key intellectual property and human talent. We worked closely with LSA to target and implement the right solutions with the greatest impact. I would recommend LSA to any company that’s looking for a trusted training and development partner.

Janice Passarello
Director of Human Resources

I’ve been associated with LSA for the last 8 years and have found them to be an extremely professional, well managed full service training organization. Since working with LSA, I’ve participated in a number of solutions ranging from Performance Management to Assertiveness Training – I’ve found that the quality of the resources is superior. They are well prepared and have definitely done a considerable amount of pre-work in order to customize our culture and business into the total learning experience – making it most beneficial for our employees.

Duane Schroeder
Human Resource Manager

LSA exceeded all my expectations. We interviewed 7 potential training and consulting partners and selected LSA due to their expertise, flexibility, and breadth and depth of solutions. We were able to construct a management training course from the modules most appropriate to our needs, and are able to provide additional training from their well developed portfolio of experts. Our managers galvanized as a team throughout the session and are better prepared for the rigors of a competitive market.

Mitch Mandich
CEO

Edify

I am very impressed with the quality of work and talent. LSA did a great job of listening to my needs and providing the exact management training program expertise I needed to get the job done.

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