Effective Ways to Reward Employees and Boost Productivity
What is employee reward system? Why is it important to reward and recognize employees?
Employees are the backbone of any business enterprise the world over. Without employees, nothing gets done. They constitute the heart of any productive venture and are found in both service based industries as well as industries that manufacture tangible products.
What then is employee rewards? In briefly explaining term, it simply implies rewarding deserving employees for their commitments and services.
Employee rewards serve mainly as incentives meant to foster more commitment to the ideals of the employer. Humans, by nature respond to incentives, rewards or commendation positively. Hence, in a bid to show how thrilled he/she is by the award, they naturally respond positively by working harder to do more of the things that brought them recognition in the first instance.
A lot of research has been done in this regard. Companies and businesses spend an enormous amount of their resources studying how humans behave. This is done mainly to increase the productivity level of its workforce.
How Does Employee’s Reward Works
Some businesses have devised strategies to significantly increase the productivity of their employees. Hence, goals or targets are set for their workforce. Because humans seem to perform whenever there is an incentive in place.
As a matter of fact, this target brings about competition among these employees. However, at this stage, the configuration of the business makes it possible for all the employees to still work towards a common goal which in some cases might be obvious to them.
By nature, when humans compete they do so to the detriment of a common goal or objective. Hence, for a business which needs the input of its workforce while rewarding them for enhanced performance, it is important that the business be patterned in a way that all their effort will be channelled to achieving the business’ objective.
Factors that Result in Employee Rewards
For every reward given, there are certain factors which are considered by every organization. These factors measure the effort put in by its employees and grades them according to the effort made. Some of these factors include the following;
- Employee Performance
This is critical to who gets rewarded or not. Employee performance usually comes after setting up a goal for employees to attain. These goals are a benchmark to what employee gets rewarded and to what degree he/she is rewarded.
Employees who beat this benchmark are usually those who are more committed to achieving the set target and are driven more often than not by the incentive they are likely to benefit from at the end of the day. Meeting all the requirements set by the business means their performance is commendable, and therefore, will be rewarded.
- Employee Behaviour or Character
The behaviour or character of an employee is critical to the success of a business venture. By behaviour, it entails certain characteristics or features possessed by the employee. These behaviours are usually beneficial to the business.
In breaking this down further, employee behaviour can include being dedicated. Dedication can come by way of being punctual and also by committing more time after work hours to the business.
The most important of all is developing innovative ways of getting more work done in lesser time. This characteristic is desirable as it helps the growth of the business, and therefore, in a show of appreciation for such effort and commitment, the business or company gives a reward to the employee.
Integrating Employee Rewards into the Business Structure
Creating innovative ways of integrating employee rewards into the business structure can be a great way rewarding your employees. This can come by way of benefits which are accruable to an employee after attaining certain milestones set by the business or company.
By placing targets, the drive to perform typically sets in among the company’s workforce or employee. This is healthy for the business as its chances of growth are highly likely.
However, it is important that due consideration be given to competition that will most likely be faced by the business. When there is high competition, a business without an attractive employee reward structure is likely to lose its top employees to rival business. This is mainly because of the better incentives or deal offered by your competition to their workforce.
Variants of Employee Rewards
There are several forms employee rewards can take. As mentioned earlier, integrating this into the business or company structure is an important step. However, if this is the case, it is not made public, but just a few will know about it. There is also the reward which is done publicly.
This is specifically done to honour the employee(s) in the presence of all his/her peers. The aim is to create a resolve to do better or even outperform the recipient by other employees. These two are found in many businesses or companies, though not in every case.
Employee rewards has become attractive to many business owners. This is especially true due to the increased performance level it has engendered among employees. As a business owner, if you have not incorporated this into your business, it is important you consider doing so, as it has the potential of taking your business to the next level.