MOTIVATING STAFF THROUGH
REWARDS AND RECOGNITION
Rewards and recognition is one of the key levers that any
organization can use to encourage appropriate behavior,
emphasize both positive as well as undesirable practices,
and recognize excellence. SIA employs various forms of
reward and recognition including interesting and varied
job content, symbolic actions, performance-based share
options, and a significant percentage of variable pay
components linked to individual staff contributions and
company’s financial performance. SIA keeps base salaries
low by offering employees bonuses of up to 50% of their
annual base salary, a formula that is hardwired and depends
on SIA’s profitability. The numerous international accolades
received by the airline over the years, including “best
airline,” “best cabin crew service,” and “Asia’s most admired
company,” serve as further sources of motivation.
The company also holds companywide meetings to keep
staff updated about latest developments and circulates
newsletters. As Ms. Lim noted, “It’s about communication.
For example, if we add a new service at check-in, we
will talk to the people involved before, during, and after
implementation. We will discuss the importance and the
value of it, and make sure everyone is aware of what we
are doing and why. It helps to give staff pride in what they
do.”
Communication also aids in recognizing service excellence.
Staff going the extra mile receive recognition through such
honors as the annual Deputy Chairman’s Award. Mr. Sim
stresses the importance of recognition: “We know that a pat
on the back, a good ceremony, photographs and write-ups in
the newsletters can be more motivating than mere financial
rewards. Hence, we put in a lot of effort to ensure that
heroes and heroines are recognized for their commitment
and dedication.”