Most employers look for their employees to be more innovative. When this is the case of most of the employers, some really want to pay their staff for their innovative ideas that contribute a great share towards organizational development.
This is why they begin to think how to pay for innovative ideas.
What do Canadian Researchers say?
After conducting a review of corporate survey data, these researchers found that individual performance bonuses and regular salary do not encourage creative thinking in employees.
However, they will show better problem-solving skills and higher creativity, when they are awarded with team bonus, indirect pay and profit-sharing plans.
One of the researchers named Bruce Curran, who is a doctoral student at the University of Toronto states that employers can pay employees for their innovation if they do it properly.
However, he further adds that individual incentives are not going to help. He has further added that group bonuses can play a major role towards encouraging the type of team-based brainstorming that leads to new ideas that are meaningful.
He has also stated that innovation is collaborative in different perspectives and so incentives can motivate collaboration among the workforce.
What will be the effect of rewarding teams?
When the employees are rewarded as teams, they will be in a position to take more short-term risks as their own pay does not get affected.
How was the study conducted?
The survey data that was compiled by the Canadian government from about 3000 organizations was studied by Curran and his team.
The data had details about mode of payment to workers, the details about whether the companies had created or improved a product or production process or whether they have made a new introduction to the market.
Result of the study
At the end of the study, the team found that group variable pay was more crucial as compared to individual salary when it comes to corporate innovation.
The team stated that it is important for employers to pay well for meeting the salary concerns of the workforce.
Furthermore, the employers should remember that salary has only a lesser effect on innovation. In addition, regular corporate training will be of great help in motivating innovation among the workforce.
More innovation in companies with robust benefit
This was another report found by the team of researchers, who stated that companies, who offer robust benefits to their employees were able to gain better innovation from the workforce.
The reason may be that benefits motivate the workforce to take long-term view of their relationship with the organization.
To conclude, people tend to show more innovation when they feel secured about their employment. So, as an employer, when you ensure job security more innovation can be experienced from your employers.
Also, when they come up with innovative ideas, the best thing you can do is to pay them some sort of incentive for the innovation shown by the team, which will provide them great motivation to show more innovation and creativity.