For any business, recognising an employee’s hard work and productivity is very important. It is not just for the sake of employees’ welfare but recognising and rewarding employees can also produce good returns on investment. There are different ways in which employee recognition and rewarding programs can become a game changer for the health and growth of the business.
Cooperative Culture Building
Rewarding employees through a systematic way instils a belief in them that they are all working towards the same goal and therefore being rewarded without any bias. This perception or rather reality helps to improve workplace culture. Due to this supportive environment, there would be harmony among co-workers which helps in getting the best out of them and that result in higher rates of productivity.
Easy Return On Investment
You can make a smart investment by rewarding employees through bonuses and cash prizes. The monetary expenditure done by the employer in this regard will not only boost the spirits of the rewarded employees but it will help in motivating other employees to perform exceptionally well to get the bonuses. Therefore, the introduction of this small bonus can start a healthy competition among the employees and the ultimate beneficiary of this competition will be the employer because he would get the good returns.
Higher Retention Rates
Motivating employees through rewards can help in maintaining high retention rates. Recognising and rewarding the top performers in the workplace helps you retain them for a longer time period. Good retention rates also help in improving the company profile among its competitors and having a good reputation in the industry means more business.
Lower Turnover Rates
Businesses with high turnover rates take a hit on their productivity and it becomes difficult to streamline the workload when the company is always facing a high turnover of the staff. Businesses face high turnovers when employees think that their work is not being appreciated properly. Rewarding employees will make it easy to make them realise that their hard work and good performance is valued.
A statistical report from the Department of Labour suggested that out of the people who left a workplace voluntarily, 46% of them left because they felt that their work was not being appreciated properly. These stats clearly show how a good recognition system in place can help you in lowering the turnover rates.
Ensures Stress-Free Work Environment
Satisfied and happy employees are the best thing that can happen for your business because they can help you in transcending your business to new levels. Good employee reward programs can help you in creating the environment that is stress-free, happy and thriving with positive vibes, which is definitely better than what the opposite could be. A stressful work environment could impact the mental health of your employees, and if you don’t have an onsite clinic like those at https://www.edenhealth.com/blog/onsite-clinic/ to offer and quick and effective help, this could have detrimental impacts for your business and the employees who work for you. So, recognition and reward programs are definitely the way forward.
Some Small Reward Suggestions
Apart from a designated recognition and reward programs, you can introduce several economical rewards in your company.
- Give passes of social events or movies to the top employees
- Grant extra off days to reward the deserving employees
- Special mention of top employees in company newsletter
Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.