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The Use of Reward Systems for Internal Innovation

We look at the importance of inspiring internal innovation

22Oct

Business organizations and establishments are required to do one thing, and that’s to consistently get results. Performance equals efficiency, which in turn leads to higher revenues. A company performing poorly normally means only one thing, its organizational structure is not well designed.

Smart business leaders always try to maintain and promote an environment where there is an element of innovation. They know that there are many hinderances that can come between an employee’s motivation and determination to innovate. These are known as invisible forces, which is the reason why more than 70% of organizational restructuring fails. Here are some ways a company can use a rewards based system to create positive internal innovation:

Develop a Flexible Time Structure

Nothing can change the fact that innovation requires patience and time, which is why leaders often fail, because they don’t leave enough time for innovative thinking. However, there are companies that have realized this and have started giving more time to their employees. Companies like Google and 3M grant their employees 10% more free time to think more freely without having to be stressed by their daily workload.

FedEX offers its employees paid days, which they can spend at home to concentrate on experimenting and creating new concepts and innovative ideas. This has been very successful for FedEx and has had several promising innovation results. Incorporating ideas such as these can have a positive influence on your workforce, as more people will start presenting their thoughts.

The Bonus System

Many companies in the US have been using this program for quite some time now with bonuses awarded to employees who frequently accomplish or exceed their given tasks. If you don’t already offer bonuses to your employees, start by setting a benchmark. Offer bonuses to your team on accomplishing goals and increasing company revenue, whilst also using it to recognize and appreciate individual and team accomplishments.

Be Symbolic

Recognizing achievement and representing your business’ core values should be rewarded and this can done through symbols. These symbols can take the shape of values, success stories, employee awards, and catchphrases. Symbols like these have the power to promote a culture of innovation and employee contentment and some of the most successful business leaders have incorporated this form of reward in order to establish a more innovative environment.

Reward systems are essential if you wish to produce positive results and secure the confidence and trust of your employees. Recognize their strengths as a whole, assess their weaknesses individually, and as a leader always motivate them to achieve more. It’s only then that you will be able to produce promising and innovative workers.

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