Best Practices of High-Performing Employees: Rewards and Performance in a Balanced Scorecard Environment

Abstract

The balanced scorecard captures strategically relevant performance measures used as part of a performance evaluation system. These systems often include financial and nonfinancial rewards intended to motivate employees to take actions aligned with corporate strategy. Yet recent literature finds that rewards can have the opposite of intended effects. We consider the best practices of high-performing banking employees in the context of a balanced scorecard system that provides financial and nonfinancial rewards for performance. Further, we consider the strategic, contextual environment in which these institutions compete.