Rewards 'can help identify problems'
Tuesday, 30 June 2009
Companies wanting to tackle problems with inappropriate behaviour in their organisation could use a reward programmes to support this, it has been claimed.
According to a study in the Journal of Business Ethics, firms can use incentive schemes to reward whistle-blowers who bring problems to the attention of management.
The report's authors, from Indiana and Georgetown universities, pointed out that employees would rather bring problems to the attention of their manager than go directly to the media, which is the stereotype.
In addition, they claimed that a business' reputation is one of the most important assets it holds and suggested that a reward scheme for whistle-blowers can help them to protect this by giving them chance to resolve any problems.
"We recommend that managers consider implementing performance review systems that specifically assess employee reporting of questionable activity through appropriate channels and reward systems that provide incentives for valid whistle-blowing," the authors explained.
Last week, a survey by Aon Consulting's Radford research service suggested that companies are looking for alternatives to traditional financial bonuses to reward their employees' performance.