The 2015 National Management Salary Survey recently published by CMI and XpertHR has revealed that almost half (45%) of senior managers and directors whose performance was rated as “not meeting expectations” received a financial bonus which does back up the headlines about large bonuses being issued whilst companies are failing
A strange as this seems it is not uncommon for managers at all levels to condone or reward poor performance. The difficulty with doing this at a managers level, its can have a negative impact on the employee engagement, motivation and performance and in worst case scenario the employee’s mimic the managers behaviour as they see it as a way to obtain rewards. Ultimately these issues could impact negatively on the overall profitability and performance of a Company as well as reflecting in the PR around the Company.
Senior managers and directors need to acknowledge that rewarding poor performance happens, and this can be due to having poor reward systems, managers not being skilled in dealing with the situation and the policies of the Company not supporting the managers in dealing with poor performance. In order to not continue to reward poor performers, companies need to consider the following areas:
Reward and bonus systems
Policies and Procedures