Dekin’s Days Are Numbered! He should be scrambling for a new program – or a new job!
The consequences of his program are predictable – lower morale, grudging compliance with rules and policies, spiritless commitment to organization success, and burnt out managers who spend their time policing a ridiculous system.
Let’s take a look at some problems with Dekin’s plan, and propose an alternative.
| 1. |
It jumps to a conclusion without a careful analysis of the problem
The survey identified the symptoms of organization dysfunction (i.e., absenteeism, accidents, and departure from policies) and assumed that the complacency of the workforce was to blame. This is not necessarily the case, (i.e., accidents can be caused by factors outside the employees’ control such as poor work processes or faulty equipment), and a new reward system may not be the panacea. |
| 2. |
It does not tie pay to performance
Probably the most important reason that the plan will not best achieve its desired outcome is that it rewards employees for activities that do not correlate strongly with organization success. Why should anyone receive a bonus just for showing up to work on time or wearing protective gear – these are basic expectations. Digression from these expectations should be addressed through day-to- day performance management, and consequences are fair if there is no improvement. However, rewarding people for compliance is a waste of money.
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| 3. |
It has a negative focus
There are too many negative messages in the program. For example, the communication uses scare tactics such as ‘management means business or the company could shut down’. The deduction of points and a grading system sends a negative message compared to a bonus that is earned. Also, celebrating spiritless achievements such compliance with policy does not exactly turn employees into cheerleaders for organization success, and change behaviour in the long term.
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| 4. |
It is an administrative nightmare.
Tracking, compiling and reporting of all of the violations is not only time consuming but detracts from the real business of engaging employees in activities which are more likely to improve productivity and profits. Also, while some managers may grudgingly comply with this paperwork, others will turn a blind eye to violations, especially when they also have self-interest in portraying their group in a positive light.
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| 5. |
It puts managers in the role of cops, not coaches
Research and experience has found that managers play a pivotal role in employee motivation and retention. The program requires managers to police and report even minor infractions such as 30 minutes of lateness. This slavish compliance to rules erodes trust and communication (what if there is a good reason for being late such as car trouble?), limits manager discretion, and puts everyone on the defensive.
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| Perhaps Dekin can consider an alternative approach. |
| 1. |
Investigate the root causes of symptoms, i.e., Why are accidents happening, Why is there increased absenteeism, Why is morale lower - and solicit employee and manager opinions for constructive solutions. |
| 2. |
Communicate the need for change and how management and employees can collaborate to achieve shared objectives. |
| 3. |
Introduce a compensation program such as gainsharing that focuses people on tangible business improvements. |
| 4. |
Provide training and tools to managers to set valid performance objectives with their team, communicate individual accountabilities, and coach their employees towards the achievement of results. |
| 5. |
Celebrate success - reward and recognize people on achievement of results, and the demonstration of desired behaviours. |
For sure, something needs to be done to address deficiencies at Unicat Industries. The company is in trouble and jobs are at stake. However, taking the time to pinpoint the real causes, involving employees in the change process, implementing a compensation program that is tied to meaningful results, and recognizing employees’ efforts in a spirited way will bring about faster change and keep Anytown, Ontario on the map.
Sue Nador is a partner at NVision Consulting Ltd., specializing in attraction and retention strategies, human resource program development and employee communication. She can be reached at 416-466-3010. |
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