Employee Rewards Boost Production, Profit, Loyalty
02/27/07
Everyone likes to be appreciated. Workers will toil hard when the chips are down, provided they don’t feel like they’re commodities. It’s therefore important to develop a multi-faceted rewards strategy.
An effective rewards strategy will often go beyond present value rewards such as current pay increases and/or bonuses. Employers need to think carefully about what kinds of rewards are valued by what kinds of workers. For example, an employee who has never contributed to a 401(k) plan may not realize how much he or she may benefit from an enriched retirement plan. If understood, a 401(k) plan could have great value as a reward to certain employees.
You will also want to consider empowering first-line supervisors with the ability to tangibly recognize employee achievement. The rewards need not be expensive. But recognition of good workers should be frequent and consistent, in order to have the maximum impact on productivity and turnover.
Some examples of workplace achievements that may merit company recognition include the following:
- Top sales producer
- Perfect attendance
- Employee-of-the-month
- Best new idea of the year
- Achievements in volunteerism or community service
- Anniversary awards at 5, 10, 15, 20, 25, and 30-year marks
- Birthdays
Employees who see that accomplishments are recognized and rewarded are more productive and more likely to stay with the company than workers with supervisors who are unaware of their contributions. High morale also reduces absenteeism, employee theft, and encourages a stream of applicants who hear from their friends and family that your company is a great place to work. In the end, an effective rewards program doesn’t cost money. It makes money because the increased productivity and lowered turnover costs generally more than pay for the program in the long run.
Looking for some ideas?G.Neil has developed a number of solutions to help you develop an effective rewards program, such as the
Star Performer Recognition Program. To learn more about our employee motivation and recognition products, visit
gneil.com/motivation.
November 2005