A lot of organisations have an incentive program that is solely performance-based. Unfortunately, incentivising members only on their performance, work only in the short-term, and not so much so for the long term goals of organisations.
Performance-based incentive programs eventually get your members to be motivated by their selfish benefits and not necessarily for the growth and success of the organisation. Now, what do I mean by this?
I mean if I know that I get an incentive for a specific performance, my entire motivation will be to just reach that targeted performance as an individual. This eventually becomes a risk when individuals do whatever it takes to get their individual incentives.
They may step on each other's toes, play dirty, or even act unethically to just ensure that they receive a certain incentive because their performance reached a certain level. How that performance level was reached would not matter. Now what kind of culture would that create?
At first, it may work for the organisation (short term gains) especially financially, however, it will eventually lead to people thinking only for themselves rather than for the growth and success of the entire organisation.
Human beings are selfish in nature, and incentivising individuals based on performance will eventually prove that majority of people who are in organisations that incentivise individual's performance actually do properly complete tasks for their selfish reasons compared to the betterment and growth of the whole organisation.
Incentivising behaviour is the best incentive structure to have as the organisation will likely see successes not only in the immediate construction of shared company culture but also in the long-term growth of the organisation.
Incentivising behaviour primarily creates company culture (the engine of every company), which is something a lot of start-up companies struggle with. Mainly focusing on incentivising behaviour will create a shared culture, a safe and secure environment, and lead to everyone in the organisation to fully understand the goals and vision of the organisation, than just focusing only on their monetary yearly individual performance-based incentives.
I believe the best organisations are those which every member knows by heart, the values, vision, and mission of the organisation. By incentivising behaviour, you would then be fostering the shared knowledge and understanding of where the organisation is set to go and the levels it should reach.
The positive factor in that is that the members would genuinely care about the organisation, where it's at, and where it should get to. So, incentivising behaviour is paramount to incentivising performance.
Not saying that brilliant performance shouldn't be appreciated, but the upholding of the organisation's values, principles, and ethics would likely have higher positive results in the long-term, than solely focusing on individual's performances.
A program that incentivises behaviour will likely result in the organisation having a high member loyalty and retention, thus the likelihood of a guaranteed growth.
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