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Four Principles
- First Principle: Give Generously and Promptly
- Second Principle: Give Publicly
- Third Principle: Give in Cash
- Fourth Principle: Publicize Widely
Three Combinations
- First Combination: Open and Private
- Second Combination: Fixed and Flexible
- Third Combination: Short-term and Long-term
When distributor bosses manage employees and teams, a common incentive is giving bonuses. However, bonus distribution requires strategy and skill. Many bosses simply transfer the bonus to the employee's account and consider it done. In fact, there are four principles to follow.
The first principle is to give generously and promptly. Many bosses promise rewards and bonuses, but they must deliver promptly once employees achieve their goals. If employees deliver, bosses must pay. Some bosses do pay, but they delay, not giving promptly. For example, a 1,000 yuan bonus given immediately versus after three months or six months has completely different motivational effects. Money kept in the boss's pocket doesn't earn interest, but putting it promptly in the employee's pocket can ignite their fighting spirit and bring more business.
The second principle is to give publicly. That is, give the bonus ceremoniously in front of the team. If the team is large, use team meetings like weekly, monthly, or quarterly meetings. For particularly important rewards, present them at annual summary or commendation conferences. The goal is to motivate the individual and also inspire the whole team to learn from outstanding and advanced employees.
The third principle is to give in cash. We all have the experience that paying by card feels less painful than handing over stacks of cash. Conversely, if you quietly transfer a bonus to an employee's card, they may not feel much. But if you hand over real banknotes in public, the impact is obvious.
The fourth principle is to publicize widely. The purpose of giving bonuses is to motivate individual employees and thereby stimulate the entire team's competitive spirit and morale. So, bosses should compile the advanced deeds and excellent cases of employees and publicize them at meetings, big and small, and ideally put them on a glory board or honor wall.
For bonus distribution, bosses should also note three combinations.
The first combination is "open and private." As mentioned, no incentive can be perfectly fair. Chinese people are particularly sensitive to inequality, especially compared to peers. To avoid negative effects, bosses should not only give openly but also privately, such as giving red envelopes or rewards in private, to motivate individuals while maintaining team harmony.
The second combination is "fixed and flexible." Generally, bonuses are based on rules set at the beginning of the year, and bosses pay when goals are met. These are usually fixed and don't change. But for outstanding contributions, exceptional performance, or excellent behavior in major events, bosses should have a flexible part to provide timely incentives.
The third combination is "short-term and long-term." When giving bonuses, it's best to have weekly, monthly, and annual incentives. Combining long-term and short-term incentives keeps employees motivated and energized continuously.
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