26th January 2017
When it comes to employee rewards, especially the annual bonus, transparency is one of the most important factors to ensure it is fair and effective. Bonus schemes – and their fairness – is a hot topic each January–March for many companies, and Changeboard has just published an article by Curo Compensation’s CEO, promoting transparency.
Employers who are completely transparent in reward have a better relationship with staff, and benefits include:
- A relationship built on trust
- Higher engagement levels
- Higher productivity levels and an increase in overall performance
- A better business reputation
- A better company culture
- Greater levels of job satisfaction
The trouble with many organisations is that there are no clear explanations or clarity in regards to reward, pay and bonuses. Many employees feel like reward teams or management teams discuss individual bonuses behind closed doors, and worry that they are not performance related at all. If there is no set scheme or accessible guidelines to inform staff about the reasons why they were given a certain amount – and how to increase the amount for next time – then you’re missing out on the benefits of giving bonuses in the first place.
Everybody should be assessed on the same set of criteria, and compensated accordingly. This gives a clear path to higher bonuses, acting as an incentive. After all, there is nothing worse than finding out that other employees have been given a bigger bonus than you – with no explanation why. Don’t put your staff in that situation – be transparent and fair. Read more here.