Development Cooperation Handbook/How do we manage the human resources of programmes and projects?/Reward Superior Performance

In general, organizations signal what activities they want to encourage by rewarding employees monetarily who demonstrate those activities. Monetary rewards can come in the form of increased base pay or bonuses. Individual bonuses are similar to merit pay, but they are a one-time payment that don’t increase an employee’s base pay permanently. Awards are one-time rewards, but they often are given in the form of a prize such as a sales representative receiving a vacation to Hawaii for meeting a sales goal. Organizations also should recognize that different people value different rewards. Some workers may prefer non-monetary options. Paid time off has become especially valuable to employees whose spouses also work. Married or single, employees can use paid time off to tend to personal affairs. Time off also allows employees to rejuvenate, returning to work refreshed and more productive. Recognition not only acknowledges good performance, but it also confers status to employees. Some workers prefer the “social capital” of special attention for their good work more than money. Recognition programs also tend to be inexpensive for organizations to implement. Organizations also can reward good performance by investing in employee development. The organizations pay for the employee to develop knowledge and skills that not only help him or her perform the current job but also prepares him or her for future positions. organizations that rely on innovation particularly benefit from using employee development as a reward for good performance.