Should rewards and accountability go hand in hand?
Business owners often ask, “when should I reward staff?” or “when do I need to take action if performance isn’t there?” The short answer is you should reward when effort and results meet or exceed expectations, and you should “otherwise” (coach, redirect, or exit) when performance consistently falls short.
Striking this balance is one of the most important leadership skills. Rewarding achievement drives motivation, but failing to address underperformance can damage morale and weaken culture.
When to reward your staff?
Consistent high performance – Recognise employees who deliver quality work consistently over time.
Going above and beyond – Celebrate initiative, problem-solving, and contributions over and above the job description.
Team impact – Reward those who lift others, share knowledge, and strengthen culture.
Key milestones – Promotions, anniversaries, and project completions are natural points to acknowledge.
Rewards don’t always have to be financial. A public thank you, extra responsibility, or professional development opportunities can be just as motivating depending on the individual.
When to “otherwise” your staff?
“Otherwise” doesn’t always mean removing someone. It can mean coaching, setting clearer expectations, or providing training. But decisive action is needed when:
Underperformance is consistent – despite feedback and support.
Behaviour undermines the team – negativity, complacency, or resistance to improvement.
Resources are being drained – time and effort spent managing poor performance that could be better invested in your top people.
Taking no action sends the wrong message. High performers may feel their effort is undervalued if underperformers remain unchecked.
Creating a culture of accountability
Rewarding achievement and addressing underperformance are two sides of the same coin. When done well, this balanced leadership approach:
Motivates people to perform at their best.
Shows fairness and consistency in leadership.
Protects the culture from complacency.
Keeps resources focused on growth and innovation.
Final thought
So, when should you “reward” or “otherwise” your staff? Reward when performance and behaviour align with your business goals and values. “Otherwise” when they don’t. By holding both lines firmly, you create a motivated, productive, and accountable workplace that drives long-term success.