When recognized for stellar performance and productivity, employees have increased morale, job satisfaction and involvement in organizational functions. As a result, employers experience greater efficiency and an increase in sales and productivity. Through workplace rewards and incentives, employers and workers enjoy a positive and productive work environment. Monetary Incentives Motivate Monetary incentives reward workers for performance and productivity through money.
Tap here to turn on desktop notifications to get the news sent straight to you. The Importance of Rewarding Your Employees By Jose Costa Following years of hard-fought negotiations by labor interests, the minimum wage was recently raised in several U.
Not so much an economic impact, or even the social im-pact that will help make life easier for the thousands who have experienced wage stagnation through the years. Instead, this impact has to do with motivation, the rewards and incentives that help drive productivity. Multiple research studies and surveys across the years have shown that feeling appreciated is a key driver of employee engagement in the work-place.
Undoubtedly, these feelings start with compensation -- an unfair salary can discourage even the most motivated employees. However, any good manager will tell you that appreciation extends far be-yond fair wage and salary increases.
There is much more to motivation and rewards than cold, hard cash. Jeremy Dean, a psychologist and founder of PsyBlog, re-wards can have a strange effect on motivation. His conclusions in this space are supported by and drawn from facts gleaned from a study con-ducted by psychologists Mark R.
The study analyzed the behaviors of pre-school children between three and four years old who enjoy drawing the key word being "enjoyed".
Kids were divided based on three different conditions: Some kids were told they were going to receive an award if they were part of the drawing test.
Other chil-dren were not told about the reward until after the drawing activity was fin-ished. The test was conducted over time. The study found that the children who expected a reward had decreased the amount of spontaneous interest they took in drawing, while the other two group of kids -- a reward after the fact or no reward at all -- were more motivated.
There exists a similar motivational outcome mechanism in the minds of adults. Now, clearly a reward system for employees should be available in organizations large and small.
However, it is very important that companies have a better understanding of their employees and consequently of what these rewards should be and how they should be awarded.
After all, re-wards should motivate people, not inhibit their spontaneity. A Washington Post article from last year made some excellent observa-tions regarding rewards and incentives in the current workplace. It noted that the "annual raise was turning into a relic of the pre-crisis economy as companies turn to creative -- and cheaper -- ways to compensate their employees.
For instance, some people place great value on schedule flexibility and health care. As a matter of fact, beyond normal healthcare coverage, ancillary health and wellness packages are also in high demand as key benefits package components. This, plus pet insurance. However, rewards should go beyond all those nice perks and they should translate into things that are truly fundamental to all employees: A great culture is its own motivation.
There are many ways to reward employees, and one of those ways is by building a corporate culture that not only recognizes good work and behav-ior with nice perks and words of encouragement, but also that provides a setting where people can be heard, lets them take ownership of their work, makes them feel they have a purpose and gives them an opportunity to grow in their career and at a personal level.
Gifts, rewards, and incentives only hold meaning in the eyes of employees when they come from management that really makes them feel part of a team. Like the preschoolers in the study, motivation has to come from with-in.
And the right environment will ensure that motivation grows over time.Reward management is a tool companies can use to keep employees happy, loyal, working hard, and engaged. It is a motivational practice that businesses use to reward employees for their. Reward Systems & Employee Behavior: Intrinsic & Extrinsic Rewards.
offer frequent opportunities for employees to reward themselves Reward Systems & Employee Behavior: Intrinsic & Extrinsic. When you reward your followers, you will create a positive domino effect.
Other employees will witness the reward, and will naturally want the recognition for themselves. This will give them an incentive to work harder, which will benefit you and your organization. Jan 13, · An effective approach to employee recognition encompasses these key points: 1) In the moment – as much as possible, be timely.
Catch people doing exemplary work and . Employee Retention Effective employee retention is a systematic effort by employers to create and foster an environment that encourages current employees to remain employed by having policies and practices in place that address their diverse needs.
Why reward is so important for 'Best Companies' Samantha Gee. Director. Verditer Consulting. Share this content. Tags. Diversity; Be innovative about total reward – ensure your overall employee deal aligns with what employees want, including aspects such as flexible working.