Use of Rewards Systems In Motivating Personnel
...s and behaviors, and finally based on other non-performance considerations, such as tenure. The combination of these principles determines the effectiveness of the rewards program. Studies have demonstrated that there are several reasons why rewards systems fail: there is too much emphasis on the monetary rewards; there is a lack of “appreciation effect”; extensive benefits become an entitlement; counterproductive behavior can be inadvertently be enforced; there is too much delay between the performance and the reward; the reward system is not appropriately suited for the specific needs of the company; the reward system was implemented for short term purposes and not designed for long term sustainability; and demoting techniques, such as layoffs, cost cutting, and excessive executive compensation can affect the effectiveness of a reward program. My prior employment experience was with SuperValu Fluid Dairy in Richmond, VA. SuperValu is one of the largest grocery retail providers in the country, however the Fluid Dairy was the only production facility under the corporate umbrella. The Fluid Dairy was responsible for supplying approximately 800,000 gallons of milk and other beverages to some of SuperValu’s 1,500 grocery store retail locations along the east coast each week. In order to safely achieve these goals, SuperValu instituted a safety rewards system, called “No-Risk.” All employees were eligible for this program. If an employee successfully went the duration of a fiscal quarter without an accident or safety infraction the company would provide the worker with five entry forms. These entry forms contained four or five safety questions. The employee would answer the questions after reviewing a safety manual and then submit them into a random drawing. The random drawing was held almost one month after the entries were submitted. Prizes were typically one $1000, one $250, and one $10 prize. These prizes were then actually given out almost a month later. Another portion of the “No-Risk” program was quarterly catered meals provided to all the employees. These meals were typically related to whichever holiday they were closest to and so it was at often unclear whether the meals were provided for the holidays or for reinforcing safe behavior. According to the principles discussed in this class and throughout the text, it seems obvious that the “No-Risk” program was an ineffective reward system. The program as constructed, did not provide sufficient temporal proximity between the conduct being rewarded and the reward. Because of the delays of having to wait for the quarter to pass, the month to submit the entries, and the month to actually collect the prize, the employees often failed to link their behavior with the reward they were being given. Also by giving money, the company fell victim to one of the pitfalls of reward systems: the monetary reward became the focus of the program rather then the behavior it was designed to enforce. Also the program inadvertently encouraged slower production in an effort to assure safety. Also because a random lottery was used, many of the employees assumed th...