The Influence Of Rewards Systems On Employees
Employee recognition is an important part of company culture and should be practiced year long. Employees want to be recognised for their hard work, they want to be motivated to work towards goals and they want to be given the opportunity to progress in their careers.
Types of rewards and their influence on employees:
- Salary, benefits and other financial incentives: Many employers reward their staff with a salary increase or a cash bonus and while many employees will appreciate this incentive, money isn’t the only thing they’re looking for in a job. Financial remuneration provides physical safety but once this need is satisfied, employees will seek opportunities for skills development and career progression.
- Career development: If a company has good talent, good people working for them, they need to recognise them and reward them with the opportunity to advance their skills and meet their personal career goals. An employee is more likely to stay in a job if they have a clear career path in place and they know they’re working towards the next step in their personal career plan.
- Incentive compensation: Career development becomes an even more powerful driver for employees when paired with incentive compensation – recognising an employee or team with a financial reward based on their performance. Incentive compensation works well when employees fully understand how their objectives contribute to the company’s overall objectives and employers can do this by, for example, providing written goals and score sheets.
- Recognition-based incentives: Employees don’t like working in a space that’s negative – a negative environment with little or recognition among peers and co-workers can lead to gossiping, low employee engagement, higher rates of absenteeism, a lack of flexibility, and high employee turnover. On the other side, being recognised by your peers and co-workers for a job well done is a lasting achievement and a powerful motivator. Putting in place incentives like ‘employee of the month’ or ‘the month’s top performer’ encourages employees to work hard and focus on achieving goals and targets.
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