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 Today's advice comes from Northeast VisionLink CEO James Moniz's interview with the Hartford Business Journal: "A year-end bonus does little to focus a recipient long-term on the goals of the corporation ... An effective reward strategy would be to have someone focus on their role in the growth of the company 52 weeks out of the year." Moniz's Massachusetts-based firm specializes in executive compensation, and numerous rounds of research have proven that holiday bonuses aren't, in fact, the invigorating force a lot of managers think they are, he says. Instead of rewarding sustained contribution to your company, they'll boost productivity at year's end -- but that's all. But just because holiday bonuses are largely ineffective (only raising workers' output for about a three-week spam, says Moniz), that doesn't mean all reward plans are. It's important to have them in place as a motivational tool to highlight specific achievements and laud hard work. In order to get the most out of employees and reward them accordingly, a CEO has to develop compensation strategies that emphasize workers' efforts more consistently, he says. That might mean deviating from the holiday season tradition to reward employees year-round, or giving that padded paycheck after a big project's successful completion. And consider the timing. If workers know they're stockpiling reward dollars for a singular cumulative payout on a designated day, that could help your staff retention rate. Those types of incentive programs, Moniz says, act as "golden handcuffs" on employees. Want your business advice featured in Instant MBA? Submit your tips to tipoftheday@businessinsider.com. Be sure to include your name, your job title, and a photo of yourself in your email. Please follow War Room on Twitter and Facebook. | | | | | | | |
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