Reward should be used to maintain engagement, not get staff engaged in the first place, says Bill Alexander, chief executive officer, Red Letter Days for Business.
Recognition continues to sit at the bottom of the priorities list. However, stepping outside of the working environment, if we were to help a friend we would expect a thank you, or, if the gesture was the other way around, we’d be sure to acknowledge that person for their actions. So, why does our morale change as soon as we step into the workplace? That’s easy. Important targets come with tough deadlines. Employees are stretched for time, and small things, such as saying thank you to a peer, get pushed to the back of to-do list. It’s only a matter of time before teams feel underappreciated, de-motivated and disengaged.
Who is receiving, and giving, rewards?
Red Letter Days For Business The Rewards Report, launched in March, found that in 2015, two thirds of staff, out of 2,006, said they were recognised for a job well done. However, breaking the data down by age group it’s clear where improvements are required.
The most rewarded age groups were 25-34 year olds (77% were rewarded) and 35-44 year olds (69% were rewarded). These age groups are likely to ambitiously be working their way up the career ladder and learning along the way. Alarmingly, almost half (42%) of 18-24 year olds were not rewarded at all in 2015. This age group may be new to the workplace, but they’re also our workforce of the future. If they’re not being inspired by great managers who nurture, motivate and recognise, then the management styles we can expect from the millennial generation in the future is very worrying.
The research also shows London was the most rewarding city in 2015 with 71% of employees saying they received a reward last year. The least rewarding regions were Scotland and East Anglia who shared the bottom spot with 43% of staff saying they did not receive a reward.
Do rewards make a difference?
Board members need to know the investment in a recognition programme will improve engagement, productivity, and ultimately the bottom line. These are all difficult to measure in a short amount of time, however The Rewards Report reveals that recognition for a job well done has a positive impact on staff motivation: 82% of employees who felt motivated in 2015 received a reward, compared to 69% of staff who didn’t receive a reward and felt de-motivated.
Exploring how rewards make employees feel, 38% said they felt valued and 26% said they felt motivated when they were recognised for their work. However, the surprise result was that 16% of staff said they felt nothing.
The results show that the employees who felt nothing were disengaged at work. The employees that felt a boost from their recognition were in fact engaged. It reveals that rewarding disengaged employees will not instantly boost their engagement. Employers need to engage employees first, then reward them regularly with a thank you to maintain motivation and engagement levels.
Most effective rewards
The Rewards Report shows that the top five rewards received in 2015 by highly engaged employees were: cash bonus (30%), a regular verbal thank you from a manager (24%), a meal or night out on the company (23%), a voucher to spend on themselves (18%), and training to help at work (17%).
Employers should ask staff what they want, then go with the most popular second and third options. The top answer is nearly always cash, which is an instant motivation boost, but the reward can be forgotten after a few days because it is likely be swallowed up in household bills. The second and third options are likely to create memories, such as a night out, a weekend away, or shopping vouchers. Employees will be happy to talk about these prizes to colleagues, much more than cash, which will, in turn, give peers a motivation boost to strive for the same.
Finally, we must consider gender too when thinking of suitable rewards. More women said they would be motivated by a thank you from a manager than men (24% versus 16%), and overtime pay was ranked higher by men.