In this present world where business has gone beyond national boundaries and employees are protected by international laws and engagement, reward systems are becoming a competitive tool to many firms.
Globalization has brought about alot of pressure on business management to be proactive, creative and innovative in order to survive the turbulent business environment that goes across national boundaries.
A reward system which consists of both financial and non-financial rewards has become essential to an organization in managing employees’ performance.
There are loads of ways you can reward employees for example;
• Allow for extra leave.
• Allow employees time to work on their own projects
• Provide more flexible working hours
• Offer training to help them improve their skills and advance their career
Rewarding employees is key to a happy workforce.
It boosts employees’ self-esteem.
These can be met in a number of ways in the workplace such as these;
Reward management contributes to a thriving company culture
If your employees are rewarded for going above and beyond, helping each other achieve, and meeting their own goals, you’ll foster a caring community and compassionate environment. Furthermore, this can be done to varying degrees, meaning that you won’t dilute the significance of rewards.
It will help you attract the top talent
Employer brand needs are managed and presented by your talent acquisition team. This is because the top talent want to know that they will be getting what they’re worth. With some extra incentives, you can attract people who are ready to go the extra mile.
You can show them how they’ll get this by detailing your reward management system and the compensation within job overviews during the recruitment stage.
It helps retain top talent
Retention is one of the reasons to implement reward management. The importance of employee retention is hard to overstate. Keeping your best employees on board is vital for business success and if they don’t feel appreciated they may leave to join a competitor.
It contributes to a strong, positive company culture
If you’re looking to build a stronger and positive company culture, don’t forget rewards systems. The way people are appreciated and celebrated plays a huge role in the mood on the workplace. It influences how your employees talk to each other, and to people outside of the business.
It strengthens your Employee Value Proposition
The EVP is the overall package you are offering to your employees and good reward management is part of this. Your EVP is what will set you apart from competitors and so it’s vital that you can be clear about this if you want to attract top talent.
It contributes to employee wellbeing
Neglecting an employee’s hard work can leave them feeling disengaged and dejected. So, with employee wellbeing more important than ever, you can’t afford to risk forgetting about those who push your company to new heights.
It increases productivity
Reward management can help productivity massively. From healthy competition to knowing that their hard work will be appreciated, employees are more likely to produce quality work if they know meaningful rewards lie around the corner.
It helps you build a good reputation
As with company culture, reputation influences many aspects of the business. One of the more important fields of influence is on clients. Bad employers can find it harder to convince a client to trust them if they know the company’s own employees don’t. Reward management, therefore, can be a key way to engage employees, contributing to a positive reputation.
It increases engagement
Employee engagement gets an instant boost from reward management. It can spark a passion and drive to bring the best version of yourself to work every day.
So, when you think that rewarding your employees is a waste of time and money, don’t forget it can increase engagement.
It encourages a proactive spirit
Know what to reward for not only a job well done, but also for great ideas that someone spontaneously brought to the table. If you include rewards for things like this, people will feel more motivated and supported to speak up when they see room for improvement. If people know that there will be compensation for going the extra mile, their motivation will be higher, and they will be more likely to put in the extra effort.
Happier employees make for happier customers
By making sure your employees are happy with a reward system you know your customers will be met with a smile and positive attitude.
How someone treats the customers they have to deal with often reflects how their managers are dealing with them, and what kind of work environment they work in. Make it a happy place for everyone, and positive experiences will become the standard for your organisation.
It helps lower stress levels thus less absenteeism
People spend a lot of time at work, which means it directly impacts their health. In an environment that is balanced, that is focussed on rewarding good work and not only punishing for underperforming, people will feel less stressed.
Not only does this have a negative impact on a person’s mental and physical health, it will also affect your business. Burnt out people will not only underperform, but also stop showing up, but try turning it into good stress with positive reinforcement and rewards.
It promotes teamwork and collaboration
Rewards don’t just motivate individuals to do their best, they are also a great tool to bring teams closer together and create a sense of team spirit. You don’t necessarily need a team bonus in your reward system for that, although it does help. At the very least, all members of a team should know that they have an equal opportunity to be rewarded.
It improves your performance management system
This aims to continually improve and grow the performance of each employee. So this isn’t just about achieving your goals but pushing your business to the best it can be. Increasingly, reward management is being employed in such systems to keep employees engaged and growing.
It’s great for increasing true loyalty
An effective reward management system ensures that your employees can form a meaningful bond with your business. This will improve many areas, such as how they speak about and sell the company to others, whether they be clients or potential job applicants.
It encourages a long-term outlook from employees
Instead of offering here-and-now rewards for single pieces of good work, a sophisticated reward management system will promote consistent good work over a period of time. Think of how to best attach them to long-term goals, thus breeding a long-term outlook.
Motivated employees are a significant factor in organizational success because as they work at higher levels of productivity, the organization as a whole will run efficiently and effectively thus reaching its goals.