Management Principle: Human Incentive Systems

I hope your new year is off to a great start as we are all busy implementing new strategies and tactics. Collaboration, knowledge sharing, and teamwork are more critical than ever due to constrained resources. The difference between a good company and a great one is its people–providing the right human incentive systems is what ultimately creates a great company. I hope you enjoy this week’s principle.Human Incentive Systems

Human Incentive Systems. Professional leaders and managers thrive on large-scale initiatives that are carefully planned and well executed. To achieve anything of scale, we must leverage the thinking and output of others. Some mistakenly believe that if people are paid fairly, they will be motivated to do good work. Research suggests that pay will only guarantee an employee will show up for work. To motivate them to perform at higher levels, we must utilize a battery of human incentive systems that are nonfinancial in nature. Professional managers both understand and embrace this dynamic, and work successfully with diverse people using the human touch. They build strong managerial relationships, support their staff with discovery questioning to develop their thinking and judgment, and, even when correction is necessary, they do it in the employee’s best interest without getting emotionally hooked. While they are hard on principle they are typically soft on people–caring, but not sentimental–firm, but not harsh. Treating people as valued human beings ensures the best possible results.

Coaching questions: What non-financial human incentive systems do you currently have in place that builds staff loyalty and increases productivity? What could be done to go to the next level?

Read more coaching principles from Dean Harbry on the Internal Innovations website.

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