Reward Systems

Synergistic Motivation

Incentive Motivation


Reward System

Increasing performance and making employees happier

Vadim Kotelnikov

Vadim Kotelnikov, founder of 1000ventures - personal logo





You Get What You Reward

The Number 1 employee performance management principle is that the things that get rewarded get done.

Reward the right behavior to get the right results. The only way employees will fulfill your dream is to share in the dream. Reward systems are the mechanisms that make this happen.




"You get more of the behavior you reward. You don't get what you hope for, ask for, wish for or beg for. You get what you reward."
~ Michael le Boeuf 




Michael Dell advice

We decided to reward employees around a matrix of Return on Invested Capital (ROIC), and growth.

Michael Dell

Dell Inc..


Steve Jobs advice quotes

The journey is the reward.

Steve Jobs



Jack Welch advice business quotes

Provide rewards for the soul and for the wallet.

Jack Welch



Sam Walton's rules for buiding a great business

A paycheck and a stock option will buy one kind of loyalty. But nothing can quite substitute for a few well-chosen, sincere words of praise.

Sam Walton



Recognize and Reward Achievements

Turn your business cause to a crusade and reward activities that advance the crusade. Reward your employees immediately when they reach a stretch goal or meet a high standard you set for them.





Stimulate Entrepreneurial Environment

Reward structures that provide a high upside for a breakthrough success and at the same time a downside for noble failures help to encourage managers to inspire intrapreneurs and stimulate an experimentation-friendly entrepreneurial environment.




A Rainbow of Rewards

Reward systems are much more than just bonus plans and gainsharing. While they often include both of these incentives, they can also include recognition (for instance, giving a WOW or an award), promotions, reassignment, and/or non-monetary bonuses.


Examples of Reward Systems

Silicon Valley Firms






Link Pay with Performance

Create heroes in each role.  Create performance-related broad bands for pay within each role. Overlap bands for pay vertically to give an opportunity to a high-performing employee to earn more than his or her supervisor. This will help high-performing employees who love what they do not to seek to moving to the next rung on the ladder.




Gain Sharing

High-growth companies use phantom stock and/or royalties as a way of sharing the wealth generated by new technologies. Instead of actually giving people stock in the company, you give them a promise to pay them a cash bonus at some future point equal to a certain percentage of the company's equity. 


Gain Sharing

Benefits of Gain Sharing

Strategic Motivation 








Three Greatest Rewards of the Universe

According to Peter Riggs

❶  To do the thing you enjoy doing

❷  Recognition in all its various forms  >>  Example

❸  Money only becomes a prime motivator if there is no sufficient of it coming in to meet one's immediate daily requirements  >>>

Two Rules of an Effective Reward System

❶  Strategic Alignment : Carefully align your reward system with the values, vision, mission and strategic intent of your organization.

❷  Practicability: Reward performance and behavior that is under employees' control.



The Power of Motivation  ●  Incentive Motivation  ●  Attitude Motivation

Performance Management

Performance Measurement Systems

Employee Empowerment  ●  Employee Satisfaction


Innompic Games  >>  Winners  >>  WOW awards

Dell: Fast-Paced Flexible Culture  >>  Culture of Owners

Toyota Production System (TPS)  ●  Canon Production System (CPS)


Rewarding Idea Generation

Recognition and rewards are fundamental elements of any successful Idea Management program. They perform a number of important roles. Most programs now provide a mix of corporate recognition, career advancement and trinket-style gifts... More

Case Studies Fidelity Investments

At Fidelity Investments commitment to Kaizen (a continuous improvement mindset and strategy) is reflected in its performance management and compensation systems... More





1. The Centerless Corporation, by Bruce A.Pasternack and Albert. J. Viscio

2. Driving Growth Through Innovation, Robert B. Tucker

"Reward innovative behavior intrinsically and extrinsically. Reward through recognition."

3. Motivate to Win, Richard Denny

4. How To Motivate Every Employee, Anne Bruce

5. Leading on the Edge off Chaos, Emmet C. Murphy and Mark A. Murphy

6. Four Keys to Great Managers, The Gallup Organization

7. How To Motivate People, Michael le Boeuf

6. Recruiting Q&A: IDEO. Beth Strong

Henry Ford advice

Make the best best quality of goods possible at the lowest cost possible, paying the highest wages possible.

Henry Ford

Ford Moror

Mahatma Gandhi advice quotes

It is the quality of our work which will please God and not the quantity.

Mahatma Gandhi