Customized Rewards
Welch remembered the time he wanted to quit General Electric (GE), in part because of the "commoditized" raise of $1,000 he was given by the company. In response to that, he made it one of his trademarks to make sure that didn't happen with his people.
When people were rewarded under Welch, it wasn't considered a small thing or inconsequential, for the very reason that he demanded they be differentiated from others.
He said concerning rewards: "I can't stand nondifferential stuff. We live in differentiation. You can't run these 12 businesses as if they were one institution."
I've seen this first hand with companies I've managed or consulted with. When you're offered the same thing as someone else, there's something that is diminished in its value. The very reason is that we're not the same as everybody else, and we need to be recognized accordingly.
There is an extraordinary value and motivation when something that is connected to a person directly is given them. It is considered of a high value to those receiving it.
It's a huge mistake in companies to offer rewards that have become commodities. In many of these cases it's worse than not giving out rewards at all.
For our best people it's worth the extra time to think through what can be offered them specifically for a job that is well done. Bonuses and rewards are great tools and motivators to bring deserved recognition to those receiving them, and for those that are hungry to get a piece of that action too.
Don't underestimate the power of customized rewards. Jack Welch was a master at creating and dispensing them. You know the results he got.
Other Jack Welch Resources:
Jack Welch's advice to MIT Sloan students
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