Employee Rewards: Maximise the Effectiveness
An employee reward system is all about showing your appreciation to those who take your business one step closer towards its goals (not just turn up each day). It is about incentivising employees to work toward clear objectives and to live your values every day, working smarter to achieve more whilst enjoying a sense of satisfaction in what they are doing and understanding where the organisation is heading. However, the same tired old employee rewards may not be having the same effect on motivation as they once were.
Is it time to take a step back and review just how effective your mechanic for employee rewards really is?
The Dangers of an Ineffective Employee Reward Scheme
A successful reward scheme can hold a lot of benefits for your company. And likewise, an ineffective one can have a negative effect on your profits. Choosing the wrong employee rewards strategy can result in demotivated employees and breed resentment. For this reason and many more, it is wise to plan your rewards carefully, finding the optimum blend of monetary, non-monetary, social and material rewards.
Consider On The Spot Rewards
Timing is everything. Many reward schemes run on a monthly basis but this may be one of the reasons that engagement with your program has begun to fizzle out.
Employee of the month schemes are used by many organisations and can make a positive impact. But they need support from additional activity to strengthen the reward mix. Waiting a month to have achievements rewarded may ensure that employees put in additional impetus at the end of the month, but with real-time peer recognition layered on top this hard work can be encouraged daily. Another way to keep employees incentivised is to empower line managers to deliver rewards on the spot for exceptional achievements. These three employee rewards techniques, when applied side-by-side, can be a powerful motivator.
Attach Recognition to Real Achievements
Many companies are guilty of rewarding achievements almost as a second thought. One employee will take the glory, with little explanation about what that individual did differently and how their actions reflect brand values, leaving the rest of the workforce none the wiser when it comes to why the employee was chosen or why they were not. More effective schemes ensure that there is great communication surrounding the presentation of rewards and those rewards are based largely on goal achievement. This way, the playing field is even for all involved.
Don’t presume to know what type of reward will most appeal to your employees. Whilst you might make an educated guess based upon your audience demographic it is essential to seek the input of employees on their preferred reward type and means of redemption. Multi-retailer options are popular with many employers as they put the choice of reward in the hands of the recipient.
Involve Senior Management
It isn’t only the reward on offer that matters but also how you present it. An envelope left on an employee’s desk for example isn’t going to provide that much sought after recognition as would an awards celebration that involves the whole company. One way to make your employee reward system more effective is to get senior management on board.
Often business leaders simply aren’t aware of the achievements of employees. As these are rewarded by middle management and this can undermine the importance of achieving the award. Host an awards presentation evening where all of your employees are included as well as those higher up in the company or if that’s not practical, include congratulatory messages from the senior team in digital communications. This will in turn attach more importance to employee achievements as a whole. It also makes the reward you give more coveted without having to upgrade its value.
Is your employee reward scheme stagnant? Put ineffective rewards in the past and you’ll boost employee productivity and engagement in equal measure.