Matt Lamontagne

The two major motivational objects are:

1. Reward - something of material value and
2. Recognition - public expression of excellence and achievement

Although most reward systems are based upon material reward, the most motivating of all gratuities is public recognition.

The primary reason for any reward is to increase the quantity or quality of performance of employees to the benefit of the dealer. The reward is usually mutually beneficial to both employer and employee, and therefore effective in gaining the intended goals. It must align the goals of the employee EXACTLY with the goals of the dealership.

Incentive plans and rewards should not be viewed as a gift from management to employees. To be of value should it must be an earned achievement, vary with performance and ideally, be measured by only those elements under the direct control of the participants. It must be perceived as fair by all parties and to be effective, must stimulate positive action.

The ultimate success of an incentive system is in the desirability of the reward or recognition. A profit oriented management team tends to think in terms of monetary incentives. When a reward other than money is offered, personal taste often prevails; e.g. a dealer principal who likes sailing may reward employees with a day on the water; the hunter may offer hunting lease privileges, etc. The reward is too frequently determined by the perceived value of the giver.

A "reward" must have value to the receiver, and therefore will vary from person to person. Many times, having a menu of rewards is more satisfying than a single award. The reasons for giving rewards are as varied as the value of each individual's desire. Personal motivation has varying drives for each individual.

Rewards should meet the following criteria:

• Have perceived value to the receiver.
• Include public recognition, particularly to peers.
• The achievement should have known factors of measurement; otherwise it cannot stimulate individual effort to excel.
• Must be attainable to all participants.
• Must be given frequently to be most effective. (An "Employee of the Year" award is a one time a year reward, whereas "Employee of the Month" would, or could, stimulate more regular interest).

FIVE PRIME MOTIVATING FACTORS

When using motivation as an aid to productivity, it makes sense to select those factors which will motivate most of the people most of the time. If you dismiss the “wage paid for work done on the basis that it is adequate” factor, then you can give your attention to the five prime motivators:

1. Appreciation for accomplishment
2. Work satisfaction
3. Respect from others
4. A sense of belonging
5. Personal identification

Think back to the spiffs you've used in the past. How many of the five prime motivators have you taken into consideration? Cash does, in fact motivate some people some of the time - for a very short period of time. Recognition on the other hand motivates all people all of the time - for extended periods of time. What's it going to be, the short-term lazy way out of a couple hundred bucks, or a long-term motivation that will change the culture of the dealership? Think about it.