Since rewards motivate and incentivize people, they must be based on performance. Specifically, they must be based on the successful completion of activities that help the organization and drive it forward toward the achievement of its goals of productivity and profitability.
Nothing else should be rewarded—not seniority, not education, not political connections. Only performance.
The only way for a reward structure to work in helping the company to be successful is when rewards are directly tied to performance that helps the overall organization.
Fast-growing organizations tend to be performance-based. The only way to get ahead in these organizations is by doing an excellent job, getting along well with all of your coworkers, and helping ...