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Iconixx Insights BlogIncentive Compensation Management

Track performance, not hours, for better compensation management

By April 9, 2014June 11th, 2024No Comments

While many employees think putting in extra hours show their employer they are working hard and dedicated to the job, long hours may actually lower productivity and engagement in the workplace. Too many work hours take a toll on workers’ well-being, which could lead to an increase in stress and poor health. Employers are encouraged to take a different approach to get workers to boost their performance.

Instead of working longer, employers may think about new ways to work smarter, such as using incentive compensation software to pinpoint which staff members are showing results, regardless of after hours spent in the office. Rewarding employees is an effective way to improve morale and performance without having workers sacrifice their health and well-being to do so.

Health hazards associated with working long hours
There are many reasons why employers should focus on monitoring performance instead of long hours. For one, working longer hours is detrimental to workers’ health. A report in The Economist shows there is a correlation to the number of hours worked and the potential years of life lost as a result.

The more hours workers from member countries of the Organisation for Economic Co-operation and Development (OECD), which includes the U.S., had put in, the more likely they were to die a premature death. The article notes that a lengthy work period could strain a person’s health by inducing stress that eventually causes a variety of health effects like heart disease and depression. Since long hours could impact employees’ work and home life, employers may want to look into ways for eliminating job stress.

Focus on tracking performance, not hours
To maintain workers’ health and well-being, employers could introduce new management techniques that allow staff to work smarter instead of harder or longer. One of the ways employers can change things up at work is by encouraging workers to build their working periods around a routine, Inc. Magazine said. By having a daily routine – such as beginning work after only after checking emails or finishing a cup of coffee – it’s easier for employees to get into that work mindset that allows them to be more productive.

Tracking performance instead of hours can also help employers maintain a productive workplace by using incentive compensation solutions to measure performance. This software is a simple solution for measuring results as opposed to the number of hours worked.

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Ballast Point Ventures

Ballast Point Ventures is a later-stage venture capital fund established to provide expansion capital for rapidly growing, privately owned companies in diverse industries, with a particular emphasis on companies located in Florida, the Southeast, and Texas. The BPV partners have more than 70 years of combined experience investing in and building high-growth companies in a number of industries, including healthcare, business services, communications, technology, financial services, and consumer goods. BPV has $200 million under management and seeks to make equity investments ranging from $3 million to $10 million.

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Harbert Management Corporation

Harbert Management Corporation seeks to generate superior returns for their investors by identifying and investing in the most promising early growth stage companies in the Southeastern U.S. HMC seeks to capitalize on what it believes are compelling regional dynamics, such as a strong and fast-growing economy, significant research and development activities, and an established entrepreneurial community. The HMC team combines substantial investment, advisory, and operating experience with capital and networking contacts to support great entrepreneurial teams in successfully executing their growth plans. With offices in Birmingham, Alabama; Richmond, Virginia; and Gainesville, Florida, it’s well positioned to partner with entrepreneurs throughout the Southeast.

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KBH Ventures

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S3 Ventures

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