Analysis of Issue:
" Employees respond best to monetary compensation. No incentive will engender better performance than a raise in salary or a big bonus for a job well done. "
Monetary compensation has always been one big criteria to choose a job offer. People usually see monetary compensation above all other facilities and appreciations. Some may claim that job satisfaction and other facilities are more important than monetary compensation, but then they overlook one simple fact that what matters at the end of the day is how much money you take home for your family.
Government companies in India had a culture of giving appreciation letter to their employees for good performance. Salary rise was usually very small . Clearly, it was not sufficient enough. When economy progressed and private companies started hiring peole these governement employees were first to apply, knowing the fact that private companies recognize their employees achievements in terms of monetary benefits.
Secondly, a person and his family could have different needs. In order to fulfill these wishes and aspirations he usually looks to their employer who is ready to give him a big salary rise or bonus provided they do well in their job. This is a big incentive and reason to do well at the work-place. Its this incentive that people sometime not only fulfill company's expectations but also get the reason to increase their productivity and efficiency. My personal example is worth mentioning when I got a turbo bonus from my employer when I went beyond my seniors expectations on the job. Obviously, I had a reason to do well and that was monetary compensation.
Some may say that monetary compensation is not the only way of appreciation, but then they forget that its the best and strongest way of appreciation. The main reason you do a job is you want to earn some money. And if you have incentive to earn more money by doing well, you will not say no. These incentives further affirm an employees faith in company's rewarding system.
In conclusion, the best way to reward an employee for his good performance is to give him raise in salary or big bonus. Afterall, he has has worked very hard and sweated when others were taking it easy. The hard working employee deserves such monetary compensation. Such steps will boost his morale and will improve his productivity and efficiency which are in good interest of company as well as the individual.
" Employees respond best to monetary compensation. No incentive will engender better performance than a raise in salary or a big bonus for a job well done. "
Monetary compensation has always been one big criteria to choose a job offer. People usually see monetary compensation above all other facilities and appreciations. Some may claim that job satisfaction and other facilities are more important than monetary compensation, but then they overlook one simple fact that what matters at the end of the day is how much money you take home for your family.
Government companies in India had a culture of giving appreciation letter to their employees for good performance. Salary rise was usually very small . Clearly, it was not sufficient enough. When economy progressed and private companies started hiring peole these governement employees were first to apply, knowing the fact that private companies recognize their employees achievements in terms of monetary benefits.
Secondly, a person and his family could have different needs. In order to fulfill these wishes and aspirations he usually looks to their employer who is ready to give him a big salary rise or bonus provided they do well in their job. This is a big incentive and reason to do well at the work-place. Its this incentive that people sometime not only fulfill company's expectations but also get the reason to increase their productivity and efficiency. My personal example is worth mentioning when I got a turbo bonus from my employer when I went beyond my seniors expectations on the job. Obviously, I had a reason to do well and that was monetary compensation.
Some may say that monetary compensation is not the only way of appreciation, but then they forget that its the best and strongest way of appreciation. The main reason you do a job is you want to earn some money. And if you have incentive to earn more money by doing well, you will not say no. These incentives further affirm an employees faith in company's rewarding system.
In conclusion, the best way to reward an employee for his good performance is to give him raise in salary or big bonus. Afterall, he has has worked very hard and sweated when others were taking it easy. The hard working employee deserves such monetary compensation. Such steps will boost his morale and will improve his productivity and efficiency which are in good interest of company as well as the individual.
