Why aligning rewards with behaviour is essential

Why aligning rewards with behaviour is essential.

I have discussed with various clients recently who were frustrated that some of their team members were pushing for better financial rewards, despite some of their behaviour not being where it needed to be.

I am not talking about toxic and disruptive behaviour.  Moreso the little behaviours around numbers – giving discounts, not being strict on payment terms, letting clients get away with moving goalposts.

All the little things that erode efficiency, service levels and profitability.

These people are not knowingly being disruptive but their behaviour has a negative impact on business performance and frustrates the business owner unnecessarily.  It needs sorting.

In many cases, one of the key drivers for staff over and above the business being a great place to work and there being growth opportunities, is financial reward.  Especially in the current environment.

Where every decision impacts the bottom line, aligning rewards with employee behaviour is not just a luxury but a necessity. Here’s why:

Cultivating desired culture: behaviour linked rewards reinforce the values and culture essential for SME success, encouraging teamwork, innovation, and accountability etc.

Efficient resource allocation: small businesses often operate with limited resources. Linking rewards to behaviour ensures that incentives are directed towards those who contribute the most to the company’s growth, maximising the impact of rewards while minimising costs.

Clear expectations and goals: when rewards are tied to specific behaviours, it provides employees with clear expectations and goals. This clarity enhances overall performance and reduces ambiguity, fostering a more productive work environment.

Motivation and engagement: behaviour based rewards serve as powerful motivators, driving employees to consistently perform at their best. Recognising and incentivising desired behaviours increases employee engagement and commitment to the company’s success.

Retention and loyalty: by rewarding behaviours that align with company objectives, small businesses can foster a sense of ownership and loyalty among employees. This, in turn, reduces turnover rates and enhances employee retention, saving valuable time and resources on recruitment and training.

In summary, linking rewards to behaviour in a small business is not just about recognising performance; it’s about shaping a culture of excellence, optimising resource utilisation, clarifying expectations, and fostering long-term employee engagement and loyalty.

All essential ingredients for SME growth and sustainability.

If you reward your team members without their modified behaviour, you are rewarding the wrong activity AND telling those members of the team that do behave correctly that their standards can be dropped.

Linking the two is crucial to success. Make sure you have clear KPIs in place at employee and team level to track behaviour, success and results.

You will not look back.

Want to discuss? Book a free 30 minute Discovery Call.

Grant funding business growth. Gary King Tendo Business Mentor Leeds