Why employee rewards are important
Rewards should be given to employees when they display the behaviours valued by your organisation, an accomplished performance or when achieving success. Many companies increasingly rely on rewards for their employees. Rewards come in different forms, such as:
- Idealistic rewards — appreciative gestures or words of praise.
- Financial rewards — monetary gifts or financial rewards such as discounts.
- Material rewards — gifts of any kind.
Physiologically, a reward creates a strong positive impulse in the cerebrum and slows the production of cortisol — the primary stress hormone. Regularly praising employees is, therefore, an important motivator. But for employees to remain motivated long-term, they need to feel the recognition behind it. Match rewards to performance and implement a reward system. The reward should reflect the time you spent planning and executing and the amount you have to invest.
3 easy rewards ideas for your employees
1. Budget for team events
Strong team spirit and teamwork are crucial for successful work across all departments. Regular team events allow you to provide fun activities that help team bonding. A fixed budget per employee is a suitable opportunity for an optimal reward. The team can independently decide the activities they wish to take advantage of, such as escape rooms, scavenger hunts, bowling or many other options.
2. Public praise
Even good work sometimes goes unnoticed. Praise from colleagues or management in front of the whole team feels good. It could be in a virtual meeting, an e-mail or in person. Public praise automatically makes someone feel more valued and helps boost performance. Combining recognition with monetary rewards can help make this even more memorable.
3. Additional days off
Reward your employees with additional days of leave for completed projects or good performance in the company. This increases the appreciation, loyalty and satisfaction of the rewarded employee. The employee can return from their holiday well-rested and more productive.
Rewards are an excellent way to reward employee performance and commitment continually. Employers can offer personalised rewards such as time off, leisure activities and many other unique and creative ideas as an alternative to a simple salary increase. Personalised rewards are an excellent way to express gratitude towards your employees as they show you took the time to understand their likes and interests and reward them accordingly.
An employee rewards system is a motivational strategy used by companies to encourage their staff to complete high-quality work. A rewards system has several success factors. However, it's important to note that everything stands and falls with the willingness of the employees. Rewards can still be beneficial if your employees don't follow the rewards system strategy as you intended, although rewards become useless if no one uses them. You'll need an app or platform where these rewards can be recognised and redeemed to get the most from your rewards system. Having a platform also makes it easy to create visible rewards which celebrate occasions such as anniversaries, birthdays or completed projects. These measures are cost-effective, easy to implement and suitable for many industries and departments. The benefit of introducing these measures can positively affect employees, who feel recognised and encouraged in their actions.
It is crucial to create an environment where employees are regularly honoured. The best way to achieve this is through recurring reward systems. It is not about high material values or monetary amounts but continuous awards. Reward even during a project, not just upon completion, to keep your employees interested.
This includes all motivational incentives that come from eccentric motivation. For example, if the employee fulfils requirements a, b, and c, they will receive a reward given by the system. Or in the work context, a promotion. Not only the work of individual employees should be recognised and rewarded, but that of the whole department. Be creative when it comes to occasions for rewards. Through these awards, you will create a positive work environment.
Rewarding and motivating employees
Rewards can effectively increase staff motivation, enhance their willingness to perform, and improve loyalty to their employer. However, the prerequisite is that the rewards must fit the employees' needs. One way to motivate employees long-term is to offer them further training. Training increases employee motivation because it helps them further their careers. Training gives employees the incentive to become more involved in company processes, which can lead to promotion.
Employees feel motivated when they feel their employer values them and recognises their achievements. That's why even honest praise, a sincere thank you or a small token of appreciation can be enough to boost motivation. Such gestures demonstrate that you care about your employees and their commitment is not taken for granted.
Once you have established the right culture, you can select rewards individually tailored to the employee, motivating them and spurring them on to even better performance. The only question remaining is, why should employees be motivated in the first place? After all, there can be quite a bit of work behind it. Nevertheless, it is worth motivating your employees.
Rewards and bonuses in the form of incentive systems can spur employees to get more involved and perform even better. When employees reach their targets, they enjoy their rewards and earn the status of one of your top performers, providing security and recognition.
There are various ways to provide rewards to your employees. Constructive feedback, a simple thank you, or monetary rewards create an environment where employees are motivated to work together to achieve success.
This is where the use of social recognition tools comes in handy. The platform encore is the solution for companies to communicate corporate values and tap the full employee potential with the help of transparently communicated appreciation and individual rewards.
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