Why it’s essential to outline goal-based earning potential early on for new hires
No matter what industry you work in or what your employees’ day-to-day operations look like, increasing their earning potential will be a key motivator for members of your team. That’s why commission, bonuses and raises are ubiquitous motivators for every job in every company. But while the promise of more money can be universally effective in driving certain employee behaviors, it is the structure of when and how those financial incentives are earned and distributed that will determine how effective they are at supporting action in alignment with the company’s core mission.
Building a profitable, scalable and sustainable organization starts with defining the roles and responsibilities of each employee. How can an employee adjust their behaviors to be successful in their position if they don’t know what success looks like? Set clear expectations and goals for each segment of your workforce, and anchor financial incentives to specific achievements. Spotlight—and compensate—individual victories that exemplify ideal performance in each role within your company: this both encourages and celebrates your all-stars, and helps establish clear goals for their peers. This is the traditional approach to rewarding employees who are successful at performing the tasks they’ve been assigned, and it remains valuable.
But in a truly development-focused workplace, there’s a second meaningful reward structure to consider: one that incorporates incentives for individual improvement in tandem with department-specific goalposts. Consider what qualities a standout member of your team would exemplify, in any department. You’ll find different characteristics spring to mind when thinking of overall best practices. Those should be recognized with a solidified reward structure as well.
On both tracks for employee advancement, set clear, actionable goals: Sketch out multiple career paths for team members of various levels, identify growth opportunities and explain your expectations for how employees work to achieve them. Map out hypotheticals that illustrate what growth in each direction would look like, and what changes to compensation structure would accompany achieving those goals.
Establish two tracks for career advancement: both the traditional project-based or departmental benchmarks, and a path that lets team members set goals for individual growth that support the company’s overall mission. Growth-focused leadership should prioritize charting clear career paths and compensation models that attract, engage and retain talent, while keeping the long-term profitability of the company in mind. Your hiring practices consider more than just a potential hire’s ability to get the job done: you want to strengthen and advance your company’s culture. So once your new hire joins the team, continue to reward growth in both directions. We can help—see how our menu of operational solutions can help improve your business today.