Mr. Amadi runs a decedent business model and it’s the type that is prevalent in our part of the world. A model founded on the notion that employment is a very rare commodity around here hence business owners can treat people the way they like and especially when it comes to reward systems.
Recent statistics puts our unemployment rate in the range of 18-20% and this seems to be on the increase so jobs are scarce. Like Amadi, most entrepreneurs believe they’re doing their staff a favour by employing them in the first place. The motive at this point has shifted from the very purpose of the venture to selfish individualist ideology that makes business owners develop a sense of right.
After a series of heavy staff turnover, it has become obvious to Amadi that it is increasingly becoming difficult to get loyal and committed staff. No thanks to his dysfunctional business model. The way he treats staff makes them lose confidence in the organization. They don’t see themselves in its future. They have individual ulterior motives coming to work in his company, thus growing the business has become a herculean task. Eavesdropping on a conversation between 2 staff members sent a shiver down his spine. One of them said “I am only using this place to build my résumé, I have my plans”.
Under these circumstances, it will be very difficult for staff to give their very best and go beyond the call of duty to deliver on their responsibilities. Fortune 500s remedy this by developing a system of reward and recognition whereby a job well done is recognized and great appraisal results are promptly rewarded. This way, staff are challenged to do more. Although both recognition and reward systems are often assumed to be the same but they differ considerably.
Recognition and reward are also separate from a salary structure even though some reward and appreciation may be monetary. As a small, medium or large business owner, you have a responsibility to create and develop a standard reward system for your organization. People want to be recognized, rewarded and appreciated every time they achieve a feat or go the extra mile for the enterprise. Cutting costs is a strategic objective in any business organization but recognizing and rewarding staff doesn’t have to cost your organization money.
When you pay peanuts, you certainly attract monkeys. A fair and just pay will have a multiplier effect on the entire system. It speaks volumes. A thank you message, lunch date with the CEO, a recognition at staff meeting, bonuses, pay-for-performance, profit sharing or stock options are fantastic ways of rewarding staff.
These things will increase effectiveness, productivity, increase staff moral and significantly reduce staff turnover thus improving your staff retention.