Question: In the October issue of Galvanotechnik magazine, the topic of reward systems is addressed in the article "The dream of 0% accidents at work". In our electroplating department, we are not only faced with the challenge of finding qualified specialists and recruiting trainees, but we also have to deal with a general motivation problem. Among other things, this manifests itself in the fact that additional tasks are neglected, overtime is generally rejected and a "work to rule" mentality is increasingly spreading. We are now planning to counteract this problem with a well thought-out reward system, but do not have the necessary foundations and experience to implement this effectively.
Answer: Reward systems are an extremely complex subject. Numerous factors need to be considered and these can change over time as motivation changes both socially and individually. For example, in the last century, a major motivation was the prospect of home ownership and retirement provision, whereas today there is a greater focus on work-life balance.
Motivation can be very individual and depends on the age, level of education and character of the employee, among other things. It is important to consider and balance many different aspects, as there is always a risk that certain measures may motivate one part of the workforce but have the opposite effect on others. In the following, we would like to name the most important factors for motivation and demotivation. These examples are based either on our many years of experience or on direct reports. We leave out the topic of occupational safety here, as this has already been dealt with in detail in the article mentioned above. We hope that these approaches will help you to transfer the most useful measures to your company.
Some of the following points are only indirectly related to a reward system. For such a system to work well, it needs a sensible framework - or to use another image, a stable body. If this is missing, any reward system is like putting a Ferrari engine in a Trabant.
Focus on the individual
Every employee wants to be treated fairly and humanely. This starts with the greeting in the morning. A friendly "Good morning" and a smile can have a positive impact on an employee's day and convey a feeling of appreciation. It is important to take an interest in employees' well-being and ask how they are doing. Such gestures show that they are valued as individuals and not just as workers.
Respect is a fundamental aspect of any human interaction and should always be present in the work environment. Every employee wants to be treated with respect, regardless of their position or area of responsibility. This also means listening when employees have something to say. It is essential to give them the feeling that their opinions and concerns are heard and taken seriously. Active listening creates trust and shows that managers value and respect the perspectives of their employees.
A working environment in which employees feel seen and heard contributes significantly to motivation and satisfaction. When managers take the time to build genuine connections with their employees, a culture of trust and mutual appreciation is created. This in turn promotes a positive working atmosphere.
Overall, it is the small human gestures and genuine respect that make the difference. They create an atmosphere in which employees feel comfortable and valued, which forms the basis for successful and harmonious cooperation.
Company celebrations and events bring employees together and ensure personal encounters outside of work - (Photo: stock.adobe.com/Narongsag)
Duty of care towards employees
An essential component of a motivating working environment is the company's duty of care towards its employees. This responsibility goes beyond professional matters and also includes support with private and personal problems. Employees should not feel that they are only valued when they perform at 100%. Rather, they should know that the company will stand behind them even in difficult times, just as the company demands the support of its employees in difficult times.
If employees are struggling with personal problems, it is important to offer them support. This can be done, for example, by temporarily offering more flexible working hours to allow those affected to manage their personal affairs without feeling additional pressure. A sympathetic ear and the offer to help in some way can already make a big difference and strengthen employees' trust in the company.
Companies can also point to external support services or refer them directly, such as professional counseling services or coaching. By creating a culture of understanding and care, the company not only promotes the well-being of employees, but also strengthens their loyalty and commitment. Employees who feel safe and supported in their working environment tend to be more motivated and productive.
The company's duty of care is also reflected in its willingness to find flexible solutions that meet employees' individual needs. This can include, for example, the option to work from home (where possible), adjusted working hours or additional days off in special situations.
The opposite of this - and these examples are from real life - is to put additional pressure on employees who are already struggling with personal problems. For example, asking them to postpone an important operation in order to complete certain orders on time. Or the threat of a warning and dismissal if the employment contract cannot be fulfilled to the letter due to personal problems.
Identification and group dynamics
Creating a common corporate identity is essential for employee motivation and cohesion. In electroplating, attention should not only be paid to professional qualifications, but also to human suitability. A central point when hiring new employees is the question of whether the person fits in with the existing team. The promotion of a team spirit, both within the individual departments and in the electroplating department as a whole, is of great importance.
Company events play an important role in strengthening the sense of community. Such events should take place once or twice a year to bring employees together outside the regular working environment. A well-organized Christmas party or a summer barbecue offer the opportunity to deepen personal relationships and strengthen the company culture in a relaxed atmosphere.
However, it is important to plan these events carefully. A common mistake is to offer employees just a few chips and peanuts and expect that this will automatically create a festive atmosphere. Such half-hearted efforts can quickly backfire and have the opposite effect, creating the feeling that the event is merely a compulsory exercise. Instead, events should be well thought out and appealing, with a clear appreciation for the employees. Festive decorations, good food and a varied program can help employees feel valued.
Some companies also focus on the common interests of their employees and plan appropriate activities. This could be a sporting event at the weekend, such as a small soccer or volleyball tournament. Less physically demanding activities such as chess tournaments or FIFA game evenings are also popular options. Other options include hiking days, cooking together, escape room experiences or even creative workshops. Such activities can help to strengthen the sense of community and make it easier to get to know each other outside of the work routine.
A successful event can strengthen the sense of belonging and promote identification with the company. Employees who see themselves as part of a harmonious and respectful team are more motivated and committed. By responding to the needs and wishes of employees and showing them that their work and commitment are valued, a positive working atmosphere is created that contributes to the long-term success of the company.
Another advantage of such activities is that you recognize new strengths in your employees that you can use in the company in the future. For example, in a more private setting, you may find out that an employee enjoys model making in their spare time. If the opportunity arises, you could then entrust them with tasks that require these skills.
Monetary incentives
Monetary incentives play a central role in a company's reward systems, but their effect on employee motivation can be limited and short-lived. At best, salary increases motivate for a month, at worst only for a day - especially if the salary level already exceeds the level that employees need to live on. It is therefore important to develop fair and sustainable wage models.
A fair wage model should be transparent and comprehensible. It must ensure that salaries correspond to the requirements and responsibilities of the respective position and fairly reflect the performance of employees. The introduction of regular salary reviews and clear criteria for salary increases can help employees feel valued and treated fairly.
There are even cases where a pay rise can have the opposite effect. For example, after an extremely positive performance review and a subsequent salary increase that is so small that the employee has to look for it with a magnifying glass.
In addition to the general salary, additional monetary rewards should also be offered. These can help to increase employee motivation for important but possibly monotonous tasks. Such rewards can take the form of bonuses, premiums or additional remuneration for special achievements. This concept can be compared to mechanisms used in computer games, where players are rewarded for completing important but repetitive tasks.
Examples of such additional rewards could be target bonuses for achieving certain key performance indicators, one-off bonuses for the successful completion of projects or even small financial rewards for special commitment. By using such rewards in a targeted and fair manner, the company can maintain employee motivation and at the same time promote a feeling of appreciation and recognition.
Another important aspect is the individualization of monetary incentives. Different employees may have different preferences and needs. While one employee might prefer a one-off bonus payment, another might benefit more from additional vacation days or a training allowance. By taking individual preferences into account, companies can further increase the effectiveness of their incentive systems.
A good reward system must never be arbitrary and must be transparent. Employees need to know that they can improve their financial situation through personal commitment. The extra effort and overtime - if required - should be rewarded. Although employees are happy to receive vacation and Christmas bonuses as well as general profit sharing, the direct link between personal commitment and corresponding rewards is much more satisfying.
As most companies nowadays rely on a flat hierarchy, the disadvantage is that promotions rarely take place. Therefore, new incentives need to be created that have not only short-term but also long-term effects. One example could be the introduction of a bonus point system, where employees can collect points for special achievements that can be exchanged for various rewards, such as additional vacation days, vouchers or exceptional further training measures. Regular recognition events at which outstanding achievements are publicly acknowledged can also provide a long-term motivational boost. By implementing such diverse and sustainable reward systems, companies ensure that their employees remain motivated and committed in the long term.
Fair pay recognizes employee performance and ensures good cooperation - (Photo: stock.adobe.com/Ezio Gutzemberg)
The "work to rule" problem
This phenomenon describes the situation in which employees only do the minimum of what is expected of them without showing any additional effort or commitment. There can be various reasons for this, which are often deeply rooted in the corporate culture and working conditions.
One common reason is a feeling of lack of appreciation. If employees feel that their efforts are not recognized or rewarded, their motivation to do more than the bare minimum decreases. A lack of development opportunities and prospects can also lead to employees only doing their work routinely. A monotonous and unchallenging working environment also contributes to a decline in intrinsic motivation.
Common causes are incorrectly conducted, too frequent or inconclusive meetings. If the impression is created that employees' suggestions are generally rejected or that agreed measures are not implemented, this leads to the assumption that nothing will change in the status quo. As a result, their efforts and creativity are seen as wasted and it may seem indifferent whether they are committed or just doing their time.
Even though electroplating is not the most popular place to work for many employees for a variety of reasons, they want to feel like they are doing meaningful work. However, depending on company culture and leadership, this can be effectively undermined, which can have serious consequences. If someone is already in work-by-the-book mode, this can not only have a negative impact on their psyche and health, but can also ruin a previously well-functioning team. Replacing such employees is only a short-term solution. If the causes are not found and eliminated, such problems and corresponding disharmony will occur again and again. Occasionally, these may indeed be hopeless cases, but as a rule, they tend to indicate a failure of leadership.
Concrete rewards
In every company there are numerous unloved tasks such as cleaning sanitary facilities, general cleaning work, the daily calibration of measuring devices and the monitoring of certain data. Such tasks are often "forgotten" or performed inadequately. This is where a reward system can help.
First make a complete list of all the tasks that fall into this category. Then decide which of these tasks belong to the core tasks of the job and which do not. For example, we would consider tidiness and cleanliness in our own workplace to be a core task, whereas the annual cleaning of certain bathrooms, such as a hot scalding facility, is not.
Sort this list according to importance, effort and how unpleasant these tasks are for employees or how much conflict there is in carrying them out. Then assign an amount to each task that you feel is appropriate to carry out the task properly.
If the tasks and the corresponding amounts are in the right proportion, you will notice a turnaround: Where employees previously shirked, they will now scramble to take on the activities. In such cases, you should organize regular changes to avoid envy. It is also important that these amounts are paid out as soon as possible, i.e. with the next payroll, and not quarterly or annually, as otherwise the direct link between performance and reward is lost.
If you combine this system with the points system already mentioned, you create a highly motivating and long-lasting reward system.
Example: For completing a task, the employee receives 100 euros more per month and two additional points are credited. These points can later be redeemed for additional rewards, such as twenty points for an extra day's vacation or twelve points for a training course.
Theoretically, you can refine the system further by introducing different types of points. For example, blue points could be awarded for time off and green points for benefits in kind, with training also being one of the benefits in kind. The rewards should be achievable and the system should not be too complicated. A good system is simple enough for everyone to understand, yet complex and flexible enough to motivate as many employees as possible. As already mentioned several times, transparency is key. Everyone should know what reward they will receive for what performance and also be able to set personal, achievable goals.
Discussions among employees
Finally, an important tip that is often massively underestimated by managers and especially by senior management: Employees talk to each other. Positive experiences, but above all negative events, are discussed among the workforce. Even supposedly confidential information spreads quickly and can poison the working atmosphere.
"A good system is simple enough for everyone to understand, but complex and flexible enough to motivate as many employees as possible."
This applies to unfair wages, unfair treatment, failure to provide assistance and much more. What is done to one person usually has an effect on the entire group, especially in the case of harsh measures such as warnings or dismissals. How employees deal with dismissals is also crucial. If your corporate culture is to punish employees who have resigned for the rest of their working time, this has serious consequences for the rest of the workforce.
A company functions like an organism in which each employee is a single cell. Everything you do to this "cell" has an impact on the entire organism - for better or for worse. Since you yourself are part of this organism, everything will sooner or later fall back on you. Almost everything that happens in your company is not based on chance, but is the result of your decisions and actions.
