It’s the eternal debate that industry pundits and company executives have argued over for decades: Is positive or negative reinforcement the better method for motivating employees? While there are pros and cons for each method, we’d like to offer our take on this timeless issue–and give you some specifics on our motivation process here at InkHead.
The employee stack ranking system is a process where the management team reviews employees’ performance and ranks employees within each department on a spectrum from most productive to least productive. Stack ranking has also been called “rank-and-yank” based on a model created by Jack Welch. During his time at GE, he implemented a system he described as “20-70-10”. He believed that 20% of employees were the most productive, 70% were adequate, and the lowest 10% should be fired. (USA Today)
Those who favor the rank system adhere to its principles for two primary reasons:
However, the truth is that employee ranking systems can breed morale problems, as well as force employees in competition with one another rely on individual focus as opposed to team play.
Our management team is dedicated to employee growth and development, interdepartmental cooperation, and fostering innovation through collaboration. And while we appreciate and encourage friendly, competitive relationships between our employees, the ultimate measure of our success is what we do as a unit.
With respect to compensation, our model combines the best of both worlds–a company performance-based payout as well as the opportunity for individual employees to influence their bonus money.
Some of the key points to the InkHead profit sharing model:
Our low employee turnover rate and total customer satisfaction are evidence that we’re heading in the right direction.