Agile HR: P2P Rewards and Recognition

Agile HR: P2P Rewards and Recognition

The unemployment rate in the U.S. currently sits at 4.3%, which is great for the economy in general and workers in particular. As a result, companies are having to reconsider the agile ways that they develop and mature the workforce that they already have, and that conversation often starts with compensation.

According to The Wall Street Journal, many companies are forging ahead with an old-model merit pay system. The Journal writes, “Despite low unemployment and increased competition for talent, companies are bearish on across-the-board pay raises.” In contrast, agile HR striving to gain more productivity from a better-equipped workforce, and it seeks to compensate them accordingly.

Agile HR espouses the idea that people can do more working together than they can individually. This is simultaneously an ancient and a novel concept that allows companies of any size to compete at their highest levels. Therefore, companies want to do more than just attract the best employees. They want to retain, re-train, and improve their existing employees.

P2P Rewards and Recognition

Companies want to attain that elusive title “best place to work.” Agile HR addresses this desire by adapting the methodologies by which companies provide feedback and reward success within the structure of a collaborative, team-based environment. Since an agile HR model embraces the skills and abilities of every employee, it similarly seeks to compensate the team rather than the individual.

Companies want to attain that elusive title “best place to work.” Agile HR addresses this desire by adapting the methodologies by which companies provide feedback and reward success within the structure of a collaborative, team-based environment. Since an agile HR model embraces the skills and abilities of every employee, it similarly seeks to compensate the team rather than the individual.

P2P Rewards and Recognition

When considering how to best incentivize your workplace and to maximize your company’s efforts, don’t forget these essential steps:

  • Transparency matters.

In order for people to truly function as a part of a team, there has to be a level of transparency about salary structure and process. Agile Careers notes that an open salary structure “honors the value of an employee – regardless of his/her personal negotiation and lobbying skills.” There isn’t a “right” way to implement transparency, but it’s a meaningful component to establishing the best agile teams comprised of the best talent available.

  • A win is a team win.

Despite the popularity of merit pay salary structures, agile HR thrives because of the unique contributions of each person on a team. Therefore, when a project is successful, the whole team was successful, and they should be compensated as such. In a team setting, merit-based pay has the effect of identifying and rewarding the popular kid in school rather than adequately rewarding a whole team win.

  • It’s more than just money.

Rewards and recognition can come in many forms, not just salary. Successful agile leaders will effectively utilize personal recognition and public praise.  Personal recognition might include scheduling face time with each of your team members to hear from them and to speak to them personally. Public recognition for employee contributions is goodwill currency that bolsters the morale and inspires continued contributions.

P2P Rewards and Recognition

An agile approach to employee rewards and recognition ensures that small, high-performing teams are equipped with the best talent. It’s the way forward for small businesses and startups to retain their valuable talent, and it’s being embraced by companies across the business spectrum. Kris Duggan, the CEO of BetterWorks spoke with the Center for Human Resource Management, and he said that “we’re looking at salaries every couple of months to make sure we’re paying fairly.”

This is just one agile approach that helps ensure that employees give their best because they are given the best support, compensation, and encouragement possible.

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