While psychology is a complex field, it doesn’t mean you need a Ph.D. to take advantage of it when using employee rewards. Continue reading to learn how to use the ten principles of psychology to improve your employee rewards.
Principles of Psychology You Can Use to Improve
1. Achievement-based rewards
Receiving rewards is tied to something deep inside of us which seeks rewards for our accomplishments. Therefore, if you tie your employee rewards to successfully fulfilling achievements, you can tap into that undiscovered potential inside of each employee.
Achievement-based rewards can also increase your employees’ loyalty, as those rewards are perceived as perks. In addition, achievement-based rewards will ultimately increase the productivity of your staff.
Psychological Study to Improve Employee Rewards
Various employee rewards in the workplace have been studied for their effects on employee productivity. In one prominent example, Condy, Clark, and Stolovitch (2008) conducted a meta-analysis of the literature on employee incentives in the workplace.
Here are just a few of the key insights uncovered by Condy (2008):
- Overall, incentive programs were associated with a 22% rise in productivity in the workplace.
- Compared to individual incentives, those given to teams had a much stronger correlation with performance outcomes.
- Non-monetary, tactile incentives were not as effective as monetary ones in predicting performance; and
- More significant performance gains were associated with long-term incentive programs compared to those with shorter durations.
2. Gestalt Theory psychology
In the 1920s, a group of German psychologists discovered that the human brain would assume that two unrelated elements are related if they happen close to one another. Perception and sensation research have been impacted by Gestalt psychology. It also deepens our knowledge of how our minds shape our interpersonal interactions.
Therefore, make sure that you don’t wait too long to reward your employees once they have achieved a task so that they can relate the positive reward to the hard work they have put in.
3. Rewards as a form of recognition
Being recognized at work is often something employees deeply crave and miss at work. This is where you can use rewards as a way to provide this recognition. Use rewards to show that you value your employees and appreciate their efforts.
Employ praise not as a luxury but as a means to propel employees toward organizational objectives.
By bringing attention to acts that are in line with corporate principles, reinforcement of desired behaviors can help enhance an organization’s culture.
4. Encourage healthy competition
Healthy competition can be extremely beneficial in the context of work. However, always remember that it is not about pinning your employees against each other but motivating them to do better.
This will not only improve job performance but also increase team spirit.
Read: 6 Reasons Why We All Are Addicted To Employee Rewards
5. Gamification
Did you know that our brains are wired to respond better to games because they provide constant motivation?
Therefore, gamify your employee reward system by optimizing dashboards and scorekeeping, as well as awarding rewards based on achievements or positive customer feedback and organizing contests.
6. Provide opportunities to learn
Psychology teaches us that every person has an innate desire to learn. Learning is what engages our minds and drives us away from boredom. This is why you should always provide your team with opportunities to learn.
Offer them courses and training and ask them what other skills they would like to learn. This will motivate them and also bring them closer to their teammates.
Acquiring the skills necessary for efficient recognition is essential. If you want to expand your skill set, some good places to start are with your HR department, with other CEOs, or with an industrial-organizational or consultant psychologist.
7. Connect with colleagues
One of the most common human instincts is to connect with others in order to increase survival chances. This has to lead to an affinity for building connections.
Therefore, you as a boss should encourage your employees to connect with each other. This will increase their feeling of well-being and job satisfaction.
A good way to do this is to give your staff the opportunity to give reward points to each other.
8. Create purpose behind their work
When an employee feels like their work has a purpose, then they are more likely to be satisfied with their job. This is why you should tie your rewards to customer feedback so that you can show your employees how their work directly affects the end customer.
Thus, even mundane, boring work gains meaning.
Read: What The Heck Is Employee Rewards?
9. Create milestones
Humans find it easier to work towards milestones. Using employee rewards, you can easily set those milestones and outline what rewards they will receive once they reach them.
Research on the so-called “Hawthorne Effect” has found that workers put in more effort when they know they are being watched.
While it’s not productive to constantly monitor staff performance, it is helpful to let them know that you’re aware of what they’re doing and how they’re performing on a regular basis through feedback.
10. Use rewards to increase engagement
Psychology teaches us that the more engaged a person is with the task they are doing, the more likely they are to remain dedicated and finish it.
According to the proponents of the Expectancy Theory, people will act in a way most in line with the consequences they anticipate for taking any given action. This means that our anticipation of the results guides our efforts. We may put in more time at the office in hopes of earning a raise.
Using these ten simple psychology principles, you can quickly improve your employee rewards system!
BRAVO uses all these and many other psychological principles to motivate and reward employees.
Use BRAVO to unlock the power of employee rewards psychology to enhance employee motivation, engagement, and overall performance. Book a demo now to revolutionize your rewards strategy and drive exceptional results. Take your employee rewards to the next level!
