As benefits and incentives go, rewarding employees is one of the best, most effective ways too boost retention and employee satisfaction.
According to research by Think Smart, companies using incentive programs report a 79% success rate in achieving their goals when the correct reward is offered.
More companies than ever are implementing reward programmes. Here are 5 reasons why!
The science proves it!
There’s been a lot of research into how receiving recognition and praise can affect an individual.
According to research, appreciation and gratefulness affect certain parts of the brain, including the hypothalamus.
The hypothalamus regulates things like our appetite, sleep and dopamine.
Research has shown that appreciation and gratefulness heavily affect the hypothalamus.
Effective employee rewards can reduce stress, improve sleep and even increase metabolism!
It’s incredibly cost-effective!
We’ve said it before, the most effective rewards are those which are non-monetary or at least low-cost. That’s not to say that all monetary rewards are ineffective, they certainly aren’t, but it’s more about the gesture than the actual reward itself.
According to research in The Management Agenda, non-financial recognition was cited by 65% of managers as a popular motivator. Personal drive, challenge and job enjoyment were also mentioned. Lack of recognition was also found to be the biggest demotivator at work.
There are loads of ways you can reward employees for little cost. You could:
- Allow for extra leave or an extended lunch break
- Allow employees time to work on their own projects (Google do this!)
- Provide the option for more flexible working if not already offered
- Allow time to do volunteer work for a day
- Offer to provide or allow for training to help the person improve their skills and advance their career
If you need more ideas, here’s 10 non-monetary rewards that will motivate your employees.
Employees want to know when they’re doing a good job
A well-designed job is one where an employee feels like they’re making a genuine difference to the company they’re a part of.
As part of this, employees want to know they’re doing a good job and want to be recognised for it.
The research backs this up.
- According to Social Cast, 69% of employees would work harder if they felt their efforts were more appreciated.
- 50% of employees believe being thanked by managers helps build their relationship and trust, according to research by Cicero Group
- More worryingly, only 1 in 3 employees say they have been praised or recognised within the last week for good work, according to Gallup.
Rewarding employees is key to a happy workforce.
It boosts employees’ self-esteem!
When it comes to a person’s needs, one of the most popular theories is Maslow’s hierarchy of needs.
These can be met in a number of ways in the workplace.
- Physiological – Can be met through offering food and drink options at work, the broader the options the better!
- Security – Can involve financial security such as wages and pensions or physical security like suitable, secure working conditions
- Affiliation – Achieved through creating a positive, inclusive team spirit and encouraging social interaction
- Self-actualisation – Involves challenge and encouraging creativity
Another of the needs stated by Maslow is the need for self-esteem. This is where reward comes in.
Suitable rewards for employees can help boost their self-esteem and realise their worth to the business. Whether it’s a simple ‘well done’ or a gift voucher for example, rewarding employees is critical to creating a positive atmosphere and improving the happiness of your workforce!
It’s easy to reward!
As mentioned, non-financial rewards are often more effective. However, whether you have a reward budget or not, a little time and imagination can go a long way when it comes to rewarding staff.
A reward platform can make things a lot easier for managers and employees.
There are a number of benefits to a reward platform:
- Managers can reward employees and employees can see their rewards through a reward platform from wherever they are
- Employees can reward each other (peer-to-peer) and as it’s digital, eCards can be used to show recognition in seconds. The possibilities are endless!
- All employee awards can be kept in once place and viewed by anyone at any time
- It’s quick, simple and easy for everyone involved!
It takes seconds to show recognition and rewarding employees is quick and easy. Reward and recognition is made much easier too through an effective reward and recognition platform!