Employee Rentention

Employee Rentention

Employers must realise that howmuch ever they invest in a business, the success of the organisation depends on how the managers/ employees deliver. Some CEOs tend to overlook this point. They are willing to spend more on suppliers etc but turn miserly when they come to rewarding the employees who deliver goods in terms of increasing sales, reducing costs or increasing profits of the organisation.

Employers must also realise the petty politics many organisations have in its culture, to pull down performers and non performers hog limelight by forming coteries, "networking well" with their bosses....

The employers must judge the performance and set reward system based on what a person contributed to the company and not perceptions - which are nothing but illusion management of mediocres over the bosses.

The increment system in many organisations is very conservative - "please all" kind. A performer who doubles profits does not normally get double salary in the form of bonus etc, but will be given a small token bonus and the non performer does not get denied the increment / hike either - It is a more socialist structure which frustrates performers and encourages mediocracy. For the organisation to improve on performance, the targets and KRAs and rewards need to be fixed at the beginning of the year and need to be rewarded after the year is over.

There are some CEOs who, after the year is over try to avoid paying the incentives hoping to save some money for the company by not paying the employee who delivered.

The performance evaluation in many organisations is also unlinked with the performance parameters of the company and the metrics of the appraisal is obsolete.

You reward performance and company performance improves. You reward chamchagiri (buttering the boss) and there will soon be a butter dairy in the company.