How to deliver truly effective incentive remuneration with full role ownership

The cartoon is facetious and exaggerates to make a point, but you are not alone if you are questioning the effectiveness of your incentive remuneration / performance related pay scheme.

Performance related pay is supposed to motivate people to take greater ownership of their role, to work harder, be more productive and contribute more. But surveys indicating employee engagement of 10-30% are clear evidence that people contribution is failing.

It is no surprise that, in light of this lack of employee engagement, you are actively seeking other ways to improve employee motivation and role ownership.

The Zealise Integrity Programme - ZIP™ - helps you here too, for it offers you:

• A unique method of creating employee ownership at little or no upfront cost 
• A new basis for rewarding your people's contribution 
• The sense of ownership that all other schemes aim for, but fail to create

There is growing recognition that motivation is innate and efforts to generate it from the outside are at best short-term. This is why terms like intrapreneurship and employee empowerment are increasingly widely used: indicative of new initiatives to create the sense of role ownership and greater employee accountability originally intended from incentive remuneration/performance related pay schemes.

The wider awareness of the role of people in driving sustained success, is fuelling recognition of the need for a more entrepreneurial attitude amongst employees and driving initiatives to encourage employee ownership through either employee share schemes or gain-sharing schemes or both. These, however, have inherent limitations because:

• Cash is king for lower earning employees, who thus tend to sell their shares and defeat the purpose.
• They hold little relevance for lower level employees who see little correlation between their role and profits.
• They are too often a top-down solution.

Even more significantly, however, they fail to make employees feel valued which is the key to igniting enthusiasm and the ultimate driver of self-motivation: the force that ensures the greater engagement and effort that powers productivity.

ZIP™ is a unique solution and works as a catalyst to create a 'climate of commitment', and spark the organisational zeal that solves all these problems for you. It:

• Accommodates employee ownership of your business 
• Facilitates profit-sharing through a labour dividend 
• Reinforces alignment and teamwork by recognising the organisation as a team

It does this by building on the ideas first expounded in "Lean Organisations Need FAT People" and creating the capability to make your people co-owners of the business by the simple expedient of creating Human Capital equivalent to their Human Asset value.

This ownership is created at no cost to either the individual or the company but simultaneously creates the ability for you to pay them a labour dividend in proportion to their individual asset value. This is a transparent platform that eliminates the subjectivity and openness to manipulation of your existing incentive remuneration/performance related pay schemes and thus enables you to replace those with this more equitable basis. In doing so it simultaneously removes the conflict and jealousies inherent in your existing schemes and reinforces the concept of the organisation as one large team and the need for greater collaboration to ensure "team" performance and thus sustained success.    

To find out more about our pioneering approach and how it can help you improve performance and encourage an improved people contribution download our FREE “Empowering Employee Engagement” paper or simply contact us directly.