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The risk of paying too little

By July 6, 2012 May 6th, 2020 No Comments

John Ruskin once commented. “It’s unwise to pay too much, but it’s worse to pay too little. When you pay too much you lose a little money – that’s all. When you pay too little, you sometimes lose everything, because the thing you bought was incapable of doing the thing it was bought to do. The common law of business balance prohibits paying a little and getting a lot – it can’t be done. If you deal with the lowest bidder, it is well to add something for the risk you run. And if you do that, you will have enough to pay for something better”.

If we put this into the context of staff remuneration packages similar rules apply. You may get what you pay for…. or worse… you may get less than you paid for if staff feel disengaged or demotivated. That doesn’t mean that you have to pay unreasonable salaries to get the best out of your staff, it simply means that you need to take more care to understand what is likely to motivate your people and deliver rewards that truly inspire them. In order to maximise your most valued assets, incentivising them to go that “extra yard” could make all the difference to them, and to your business.

Reward and recognition programs that are designed to identify and monitor exceptional behaviour are worth considering to recognise staff for doing something ‘above and beyond’ what they are paid for, not as part of their salary package.

Reward and recognition programs are designed to engage your staff. When compared to pure monetary incentives, ‘experiences’ as rewards have been proven to be a far more effective investment for a business. An experience that inspires a staff member is more likely to be valued, remembered and talked about unlike cash which may just simply pay the credit card bill.

With a well implemented reward and recognition program your staff and your business will benefit from improved performance, delivering a great return on investment. But remember, it is important to be able to measure your return on investment (ROI) as any reward program should be totally self funded.

Brownie Points is focused on helping organisations recognise exceptional behaviour with fantastic reward programs that measure ROI.

To discuss how we can help your business, call the team today on 03 9909 7411 or email us at info@browniepoints.com.au

 

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