Reflection Point – Re-thinking rewards

As performance appraisals roll around at this time of year, many leaders face a familiar challenge as one client raised recently: how to truly acknowledge exceptional performance within rigid systems that can limit the accurate representation of individual recognition. Whether it’s bell curves or capped ratings, the question remains—how do you acknowledge and reward your strongest performers in meaningful ways, where financial rewards will not stretch to what is desired?

And for one client recently within a not for profit organisation, this was a key concern about their upcoming team reviews and how they would acknowledge high performance.

I asked a question about how they can acknowledge their team for exceptional performance – outside of the constraints of the annual performance structure.  My client looked at me blankly.  I asked them what they know of the individuals in their team, what they enjoy and what is valuable to them.  We discussed many ideas of how they could provide acknowledgement of contribution and performance, not all of these were financially based but all were highly intentional, and individually focussed.

This isn’t a new dilemma. Years ago, I worked with a client who offered generous financial rewards as incentives—yet they weren’t hitting the mark. Despite being generous, the financial and product-based rewards weren’t achieving the intended outcomes. We targeted some questions in addition to the annual employee engagement survey to ask for confidential feedback on the current reward structure.  The feedback was eye-opening—what the leader assumed were strong performance incentives turned out to be misaligned with what the team truly valued.  This group of staff instead wanted something quite different – time off, long weekends, time together as a team, different work patterns – nothing financially based.  It struck me how individually focussed rewards and acknowledgement needs to be and how often it is easy to assume that everyone will like, and be motivated by, the same things, or the things that we like!

For the leader I met with recently it highlighted not just how they could consider acknowledgement of high performance outside of an annual structure, but it was also a valuable reflection point on their relationships with their people: how well they know them, what motivates them and as individuals what they enjoy, value and appreciate. “The 5 love languages” book comes to mind here – and yes there is a work related version called  “The 5 Languages of Appreciation in the Workplace” By Gary Chapman & Paul White, which if you are interested in exploring this topic further, is a practical workplace guide to help leaders express appreciation in ways that resonate.

The leaders’ reflection as they left the session wasn’t just about how they would approach the annual performance structure and ratings—it was about the importance of relationship and regular acknowledgement, and how it can be expressed not only through formal reviews, but in the small, everyday moments.  Simple gestures—bringing in a coffee or juice for a team member working to meet a deadline, taking someone to lunch to celebrate a milestone, or writing a thoughtful handwritten card—can leave a lasting impact. These small acts of intention can help build sustainable, healthy relationships and support a balanced sense of give and take, throughout the year.

As you end your week, take a few minutes to consider the following reflection questions.

Question 1

What groups are you a part of that you feel a deep sense of belonging?

Question 2

As a leader, how can you create greater belonging in your organisational groups?

Question 3

What can you commit to in the next six months to support your own learning and belonging as a professional?