There have been numerous articles discussing the compensation of the CEO versus the average worker. A CEO’s pay can be in the millions while a staff member could make in the $50,000s to $70,000s. Some questions arise including “Is the CEO worth it? And is a staff member who contributes significantly worth more than they are receiving?”
The issue is how do you measure each person’s performance and then in turn compensate them fairly. If a low-level staff person makes a recommendation for a better process, new product, or an improved workflow, shouldn’t they be compensated for it? Alternatively, if a CEO leads an organization with lackluster sales, drops in the share price, and dissent amongst its employees shouldn’t he or she be penalized with a reduction in compensation?
Regardless of what level a person is, a truly productive and cohesive company should have processes in place to acknowledge and reward a valuable employee. I call it the “gold star”. When you were young and received a gold star on your paper how did you feel? There was no other acknowledgement except that gold star and for most it made them feel happy. The same holds true with companies. A company that values their employees’ efforts should determine what “gold stars” they want to use and make sure it is a fair and consistent process. It could be money but other methods have been used very successfully.
This is not a competition but should be viewed as one where everyone (or almost everyone) in the company recognizes the value of that employee and their contributions to make the organization better. It should be seen as a celebration, but unfortunately many leaders don’t take the time to appreciate the employee.
The other issue is that different people may want different “gold stars”. If a leader is managing a large group it may be necessary to reward everyone in the same manner, but it is known that different generations want different “gold stars” so it makes the process very tricky. Some may still want money but others may relish some additional time off, etc. Regardless of how a leader shows their appreciation of the employee it is imperative for the leader to be sincere and authentic. In addition, the same criteria should be applied to everyone so there are no thoughts of favoritism.
When you were recognized by your company did you appreciate the way they did it? If not, how would you have handled it differently? How do you reward your team? Please share your ideas so we can all learn new ideas on how to recognize an employee’s value.
Other “V” words to ponder – victory, visible and vision.