Introduction
You may have outstandingly good rewards and incentives and schemes to support them. But all your good work could unravel if you ignore the cornerstone of rewards and incentive schemes. It’s called the Rule of Immediacy.
The Rule of Immediacy
The Rule of Immediacy says that employees should receive rewards and incentives as soon as possible after achieving the performance being rewarded. And if they can receive it immediately, so much the better.
A Reward Is …
A reward is what it says: something an employee earns for achieving a specific level of performance.
An Incentive Is …
An incentive is the promise of a reward that an employee will earn if they achieve a specific level of performance. An incentive may also be offered for specific work with a view to later results.
What Rewards And Incentives Aren’t
- Employee of the week, month or whatever. These are awards not rewards.
- Annual “recognition” for whatever purpose: even if they contain some tangible benefit or prize. Public recognition is good. But nobody should have to wait 12 months to have their contribution acknowledged.
- A bribe for inadequate performance. You pay employees to produce certain results. Rewards and incentives are for superior performance.
- Unstructured, unexpected, spur of the moment gifts: “slings” as they’re often called. “Slings” can be useful when used thoughtfully. Rewards and incentives should be part of properly constructed systems.
- Profit sharing schemes. Profit share is good. It’s not immediate.
Corollaries To The Immediacy Rule
Rewards and incentives
- must have a tangible value: money, time, gift or whatever.
- available to all members of a particular team or workgroup
- totally transparent: everyone should know what they’re given for and who gets what
- only used for specific performance or results.
Why Immediacy Is So Important
Promises are just that. A promise must be realized to be worthwhile. In effect you’re saying to employees “if you do that, I’ll do this”. Staff will believe your promise only if you honour it. If you honour it in full and promptly, staff will believe it. Little destroys your managerial credibility more quickly than making a promise you don’t honour. And if it’s about money …!
Remember What It’s All About.
It’s all about superior on job performance that improves your business results. Take care that you don’t lose sight of that. Sometimes we can invest so much energy in “getting the job done” that we lose sight of the importance of getting detail right.
Conclusion
Timing’s important in so many things we do in business. Sometimes external events mean that your timing’s “off”. The timing of staff rewards and incentives is entirely under your control. That’s why the Rule of Immediacy is so important.
What To Do Now
Is the Rule of Immediacy part of your system of rewards and incentives? How can you improve the immediacy of the rewards? What rewards could you introduce to start using the Rule?
