Setting Employees Targets

To give your employees incentives you have to set clear and achievable targets they can understand and accept as obtainable. Always give targets that are just above a sensible and realistic number which makes them stretch to achieve them. The point is to make the targets reachable.
Offering a target which, in reality, is too high or unachievable can be non-productive. If the target appears impossible to achieve, this will cause employee uncertainty and the feeling they are not doing a good job. Suggesting an impossible target will cause more harm than good to your business.
Instead of the impossible dream, make it the possible dream and let it come true. Everyone needs a carrot, and it is important that everyone gets the opportunity to have a bite of it. The incentive of a financial reward is most effective.
When I interviewed someone for a job, I asked a lot of personal questions. There were two reasons for this. One, to get to know more about the person and understand the type of personal life they had. Two, to learn about their financial needs; what were the mortgage payments, how many kids at school, if the wife worked, etc.
From this I could assess what salary was needed to pay their bills and eat. There is no point in employing someone who has insufficient money to pay bills; if you pay too little you may lose out on getting good staff that will stay with you and be loyal.
The most important thing is to give your employees peace of mind so they can concentrate on your business. This does not mean pay staff whatever they want, but pay an amount which would stop them moonlighting, or perhaps resorting to illegal activities, to get the money needed to survive. If you cannot pay what they require, you know that they would not be suitable for your business.
Detailed knowledge of my staff’s financial needs helped me devise bonus incentives based on performance. I offered financial bonuses linked to profits but my staff would see the bonus targets through their sales figures, which they could easily identify with.

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