Many companies put the effort to reward their employees, but not all companies have dedicated resources to do it regularly. It can cost you money, but the benefits of rewarding employees outweigh the cost.
If you want to keep hiring and experience low productivity, among other issues, then lacking a reward system is one way to go about it. Many employees value tangible benefits, and they can stay in an organization that rewards them.
5 Pros of an Employee Reward System
1. Productivity Benefits of Rewarding Employees
Employees who give their best to their jobs deserve recognition and rewards. One of the top reasons why many employees don’t perform is the failure to reward high performance. Why would an employee strive to do their best if they don’t get anything for it? That’s why you will see many average employees and only a few top ones.
Because not everyone is self-motivated, you need to keep boosting the morale of your employees. You can do this by providing benchmarks and rewarding those who meet them. What’s more, you can give team targets so that you can encourage teamwork in the organization.
2. Retention Benefits of Rewarding Employees
The cost of losing a talented employee is considerably higher than the cost of retaining them. When you lose an experienced employee, you will incur the cost to the company before replacement, cost of hiring, and the cost of mistakes done by the new hire before learning the job.
Moreover, the new hire will take a long time to achieve the experience of the employee who leaves. So, if you need to increase retention, the key is rewarding. Many employees will go elsewhere if they know their efforts will be rewarded there.
This makes retention one of the top benefits of rewarding employees.
3. Recruitment Benefits of Rewarding Employees
Professionals place a lot of value on peer to peer reviews. Therefore, if you have a reputation for not rewarding employees in the workplace, you will have a hard time attracting new hires.
Providing rewards reduces the cost and time taken to recruit. A simple reward such as employee of the month certificate can go a long way in attracting top talent.
4. Feedback Benefits of Rewarding Employees
Feedback is crucial to staff members since it allows them to know what they need to do to boost their performance. When you offer a reward scheme, it not only benefits their productivity, but it also allows them to know what they need to work on to get better rewards.
If an employee is awarded for being the best, then this feedback lets them know that they need to maintain good performance. Without a reward system, employees can have a significant variation in their performance.
However, rewards should not replace annual reviews or regular performance sessions but should instead supplement them.
5. Loyalty Benefits of Rewarding Employees
When you reward your employees, they get emotionally attached to your organization. This bond ensures their loyalty to your company.
Loyal employees are the best brand ambassadors for your business because they believe in the brand. They can promote your brand through social media and word of mouth without realizing it.
If you need to enjoy benefits of rewarding employees, then thinking outside the box is a must.
A reward system not only needs to include bonuses and shopping vouchers. You can get creative and provide something that will be of value to your employees. Such rewards include:
1. Lunch with the Boss
Large organizations normally experience limited access to the CEO or president. So, you can organize a lunch or dinner with the boss for the top employees. As a result, this can motivate the other employees to perform well so that they can get this opportunity.
2. VIP Access to their Best Band
Social media allows you to know your employees’ personal interests. Therefore, you can find out their favorite bands and buy for them VIP tickets to the next concert if they meet your targets.
3. Spa Day
Many employees value self-care but might not have the time or resources to do it. Hence, organizing a spa day for them, especially on a weekday, makes them feel valued.
A sound reward system keeps employees in the workplace productive, motivated, and loyal. It also provides them with valuable feedback, lures new hires, and retains employees. Isn’t this what every company wants?
Keep in mind that the more creative your rewards are, the more excited employees are, and the more value they place on them. Consequently, you will derive the most benefits of rewarding employees.