Evaluating, Rewarding and Retaining Employees
Evaluating, rewarding and retaining employees is an on-going process of personnel management. Each employee should be evaluated periodically (at least annually). This is of benefit to both the employer and the employee. The employer needs to know if the employee is meeting the requirement outlined in the job description. The employee needs to know where he/she stands relative to the expectations of the employer.
All employees with similar responsibilities should be measured against the same set of criteria. The employees need to know what these criteria are. Also, the rewards for meeting these criteria need to be outlined. A major factor in retaining employees is full disclosure of employer expectations and the rewards associated with meeting these expectations. These expectations need to be within the realm of the job description.
Many small value-added businesses ventures are very similar to production agriculture operations. So information on wage levels and rewards systems can readily be transferred production agriculture operations to these value-added ventures. Information is available from surveys on Wages and Benefits for Farm Employees and Bonus Plans for Farm Employees.
When considering compensation packages, you might be interested in Nonqualifed Deferred Compensation: Not Just for the Big Corporations.
For more information on this topic, see the links listed below of articles posted on related Web sites.
- Farm and Ranch Personnel Management – Texas A & M University Extension – Personnel management is becoming an important factor in the success of a farm business.
- A Manager's Role in Obtaining a Fair Day's Work for a Fair Day's Pay -- Part I – University of Florida Extension -- Please answer the following question: Nearly all associates will do a fair day's work for a fair day's pay when their leader develops and maintains an appropriate work atmosphere.
- Recognizing Average Associates – University of Florida Extension -- Managers, either consciously or subconsciously, often classify their workers into one of three categories: problem, average/typical, or excellent. What percentage of your total organizational workforce would you place into each category?
- Managerial Feedback, Associate Performance, and Eleven Positive Feedback Rules – University of Florida Extension -- It has been well documented that associate (employee) performance is directly and positively related to supervisory and managerial performance. In fact, managers and supervisors often have more impact on associate job performance than they realize.
- Planning for the Unexpected: Human Resource Risk and Contingency Planning – Purdue University Extension – Human resource risks are events that prevent employees from fulfilling their responsibilities and therefore keep the business from operating at full efficiency.
- Evaluate This! The New Performance Review -- HBS Working Knowledge -- For many managers, writing performance appraisals is akin to root canal—only more painful. It shouldn’t be. Here are tips for improving your employee evaluation process.
- Reviewing and Disciplining Employees – Entrepreneur.com – Articles on employee review and discipline.
- The New ROI – Return on Individuals – HBS Working Knowledge. Is there a way to measure ROI on the investments you make in people? Sure—and doing so provides you with insights on how to spend your limited resources more effectively.
- How to Conduct Employee Evaluations – NOLO Law for All. Tips for giving evaluations that will help your employees improve -- and will protect you from wrongful termination lawsuits.
- Human Resource Management: Employee Compensation Guide – Texas A & M University Extension – Compensation tells employees how they are valued.
- Paying Your Employees – CCH Business Owner’s Toolkit -- The compensation package that you offer your employees is important not only because it costs you money, but because, let's face it, it's the primary reason employees work for you.
- Employee Compensation – Small Business Notes -- Compensating an employee is not simply a process of settling upon a mutually agreeable salary.
- Employee Benefits – Small Business Notes -- Not only do employee benefits play an important role in recruiting and retaining employees, but they also have a significant financial and administrative impact on a business.
- Paid for Success: Options for Compensating CEOs -- Given the explosion in stock options over the past 20 years, it should come as no surprise to find a strong relationship between CEO fortunes and the fortunes of the companies they manage. But how well is the use of CEO stock options understood? And are they being effectively used to motivate top executives to "think and act like owners."
- Compensation: What’s the Big Secret? – HBS Working Knowledge. No, you shouldn't be broadcasting your employees' salaries. But a new survey suggests that companies need to articulate how pay systems work and how individual compensation packages are determined. The payoff for you? More employees satisfied with their compensation.
- Why Corporate Budgeting Needs to be Fixed – HBS Working Knowledge. Not to mince words, but corporate budgeting is a joke. The problem isn't with the budget process—it's when budget targets are used to determine compensation.
- Negotiation Challenges for Women Leaders – HBS Working Knowledge. When negotiating compensation, women often sell themselves short. Some practical advice on claiming the power to lead.
- Planning for the Future - Small Business Administration -- there is one option you may want to consider that would ensure income for you and your employees in your later years: a SEP Plan.
- Boosting Company Performance Through Team Rewards – Center for Industrial Research and Service -- Many companies today are realizing that they need a better way to retain, reward, and motivate their employees.
- Benefits for your Workers – CCH Business Owner’s Toolkit – Benefits are an important part of compensation.
- Rewarding Your Employees – Entrepreneur.com – You don’t have to spend a bundle to reinforce good behavior.
- Bonuses: How to be Fair – Entrepreneur.com – Employee bonuses can be great motivating tools--or a waste of money. Find out how to establish a bonus system that works.
- Effective Reward Employee Programs – Entrepreneur.com – Don't just depend on "of the month" awards. Let employees know why they're being rewarded.
- How to Reward Employees When Your Budget is Tight – Entrepreneur.com -- Seven low-cost ways to make sure your employees are happy, healthy workers.
- Employee Benefits – Entrepreneur.com – Articles on employee benefits.
- Health Insurance – Small Business Notes – Health insurance is one of your most important needs. Without it, one serious illness or accident could wipe you out financially.
- The Role of Monetary and Non-Monetary Incentives in the Workplace as Influenced by Career Stage – University of Florida Extension -- Managers are constantly searching for ways to create a motivational environment where associates (employees) to work at their optimal levels to accomplish company objectives.
- Your New Core Strategy: Employee Retention – HBS Working Knowledge. The Baby Boom is de-booming and soon there will be many more jobs than people available to fill them. The message: Keep your workers happy today.