Reward and celebrate performance, with:
- money
- lavish praise, public praise
- compliment personal qualities (not only project results - Do it sincerely and with sincere admiration).
- presentations of results to top management
- encouragements
- increased responsibilities
- increased budgets
- increased ownership of certain tasks/projects/expertise (assign them as the official champion of "x", and make sure they are required to give their opinions on every project involving "x")
- valuable gifts (trips, etc)
- training: invest in your people
It is critical for a manager to be excellent at rewarding performance - but it is also the easy part in management. The tough part is to generate performance to start with.
- find out what employees like to work on - if you assign them to projects they don't like, chances are the practical bullet points below will not help that much.
- set goals - together with your direct report. The goals must come out of their mouth (a French writer once said "those who speak will make it happen").
- explicitly mention that they own these goals (not you) and are responsible for achieving them
- give your employees a feeling of importance: why is their work critical?
- make sure they understand they are working towards a greater good (beyond just making money or helping the company make money)
- relentlessly encourage participation: discuss with them how to achieve these goals - Make sure they do speak at least 50+% of the time!! Encourage them along the way when they suggest ideas. Listen. Don't shoot down an idea.
- make sure goals are easy enough to reach, at least to start with.
- write down the goals and make sure there's a deadline.
- promote team work. Most workers get a motivation boost from working in teams.
- free up competent people to do their jobs as they see fit.
Finally: ask your employees about their work, and you will get good insights on how to motivate them.
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