Create an Opportunity to Maximize Employee Productivity !
Human resource is traditionally considered quite difficult to manage. Management often spends a lot of energy in motivating people but with limited results. Most years in April we see only about 10-20% motivated people. There are usually similar number of people looking for a change. These are some of the side effects of a force fitted “Bell Curve”.
Can we use a more effective way to motivate people? Can we have more trusted and motivated employees? Is there a way for the performance management program to play a multiplier in achieving organizational performance ?
Here we are sharing our experience with an MSME organization. Our client was a manufacturer of home furnishing products which is usually in unorganized sector & labour intensive . Assigned to improve productivity, the human resource head was concerned with high absenteeism and attrition rate specially for skilled employees. The initiatives taken so far did not show sustained improvement. Performance achievement was observed as average 50% of target on regular basis , resulting in to increased over time and eating into profits.
Together with the client team, we demonstrated how to create an Environment where people are motivated and trusted using “ Efficient & Effective way to Incentivise performance”. This approach has three major elements that were customized for the client:
1. Flexi Target Setting – there was fixed incentive target , really Not realistic , Target set on very high achievement of performance e.g. 80 units per day , Overall average reported was 41 units. 50% the peoples were operating at average of 50 units.
Revisited & customized with flexible Target for Incentives , ensured that those who were performing, continue to perform and earn incentive that was for sustaining performance . others get a chance to improve their performance from current level to min improvements ranging from 5%~10% over next two months
2. Employee Coverage / Engagement - Only 5% ~ 7% people were able to earn incentives , 100% employee provided opportunity to earn incentives.
3. Recognition Structure / Happiness to people –
No recognition and appreciation system was available other than attendance award and birthday celebration (as most organizations have) , we could observe , few people were interested in appreciation rather than money as incentive.
Incentivise using mechanism of Positive Greetings / Appreciation 360º in organization irrespective of positions worked very well and wall of fame was introduced.
Conclusion :
Our approach resulted in a multiplier effect in -
Efficient ways to engage people and motivate them resulted in meeting organization goals to ensure velocity of business.
Human resource is a key asset for organization. A key requirement is to create an environment / opportunity to engage them with motivation they expect as not always monetary rewards .