Effectiveness of Employee Rewards Programs

Employee reward programs demonstrate to workers that their contributions and professional work products are both recognized and appreciated by management. Reward programs have a positive affect on the workplace dynamic, motivating others to improve their performances and increase their sales, while fostering a sense of loyalty to the company.


Employee recognition programs that single out employees for exemplary performance create an increased sense of worth and improved morale in the workplace. The staff member who is recognized appreciates that his efforts were acknowledged, motivating him to strive for new professional heights. Colleagues see that exceptional performance is appreciated by upper management and may step up their own productivity levels with the understanding that their work could be noticed and similarly recognized. Employees who feel valued by their employers are more likely to put in extra effort knowing their contributions have value to the company.


When employees are treated like family, they’re far less likely to betray the company for personal gain. Employee recognition programs that reward teamwork and support a work-life balance by rewarding employees with paid time off and flexible schedules can elicit long-term loyalty from staffers. This reduces the likelihood of office theft, the release of proprietary information and instances of fudging time sheets and expense reports. Employees are more likely to talk positively about their company in the community, enhancing the business’s reputation.


When employees feel valued and appreciated and see they have room for advancement, they are less likely to look for other employment, even if the salary is higher. A company that has seasoned, long-term professionals on staff reduces the costs of continually hiring and training new employees. Longevity among employees has the potential to improve product development and performance over time because employees have great familiarity with the company, its products and services.


Recognizing employees for innovative ideas and concepts can lead to increased quality of a company’s products and services. Employees who feel their ideas are welcomed and credit is given where it is due may reject complacency and continually strive to perform at top levels. This can result in long-term retention of valuable staff members and a continually evolving supply of new products and services that keep the company competitive in the marketplace.