The employee rewards programs involve recognizing and thus rewarding the employees for one of their many efforts.
It is an interest of a company to reward its productive and engaged employees. Therefore such programs are adopted by many organizations today.
Organizations that implement such programs see an increase in employee efficiency. While those without it, struggle to make the most of their workforce.
The following stats in this regard also advocate adopting and adapting to it:
- 40 percent of working-class people in the United States say that they are more likely to work harder only if their efforts are appreciated.
- A company that regularly appreciates its employees is likely to witness 30 percent lesser turnover.
- Reward programs increase employee engagement by 60 percent.
Nevertheless, as much as the employee rewards are essential, their practices are equally important.
A company can successfully implement such programs only with the help of correct practices. And it is only then it is likely to bear the fruits of it.
The importance of the practices for the employee programs is understandable. And so this article discusses one of the best such practices.
Its contents are as below:
1. Define the Objective
Defining the objective/goals and criteria for the employee rewards programs is crucial to its success. However, it is ultimately the responsibility of the employer to make them clear.
A clear sense and purpose of rewards drive the employees to work hard and earn rewards.
A company may need to clear the following aspects in this regard:
a. employee behaviors
It is necessary to clear the type of behaviors that will lead to the employees being rewarded. However, the behavioral aspect of the rewards shall be following the organizational values.
A related example could be the reward on a timely deliverable that was expected to cross the deadline. The programs at inter-department collaboration is also a relevant example.
b. Employee rewards programs and their frequency
It should be clear what shall be the frequency of the employee rewards programs.
Rewarding and appreciating the employees frequently is an excellent practice. So it is one of the best practices to make employee recognition more frequent.
When it is clear that the employee rewards programs will be regular, the program becomes fruitful from the very beginning.
c. Clear programs on their nature
It also holds importance to define the nature of the recognition programs. And by its nature, it means how appreciation and reward will take place.
Traditionally, rewards take place from top to bottom, that is, from the leaders to the followers.
Nonetheless, a more dynamic nature of programs has been introduced in recent years: peer-to-peer recognition.
A peer-to-peer recognition means any employee, regardless of the position, can appreciate anyone. In essence, an employee may also acknowledge the CEO. And the same is introduced by Bravo.
Establishing the nature of employee recognition is an excellent practice.
2. Introduce Non-monetary Employee Rewards Programs
When it comes to rewarding the employees, monetary rewards have been the usual practice. However, such programs should not be limited to monetary values. And therefore should not be made money-centered.
A study also suggests the same. It reveals that the employees are equally motivated by the non-monetary values.
A monetary reward generally comes in the form of a bonus that is annual or bi-annual. And as opposed to this, non-monetary rewards are more frequent. Also, the non-monetary rewards tend to be given on-spot.
Clearly, with a monetary award, an employee will not be aware of the actions that lead to the appreciation. However, the non-monetary rewards identify the work worthy of a reward and appreciation.
The employee rewards programs, therefore, should be a mix of monetary and non-monetary rewards.
3. Involve Employees in Employee Rewards Programs
The reward programs are for the employees. So, it is always a good practice to involve your employees in them.
A company should involve its employees in such programs. It should empower them to share their ideas and opinions on it.
When a company involves its employees, it should hear them on individual levels as well.
Employees as a whole can share the views they hold over the current or the future reward program.
However, people have their likes and dislikes; the same is the case for the employees. And it is why listening to the employees at an individual level is necessary.
4. Brief the Team Responsible for the Employee Rewards Programs
The first practice for successful employee rewards programs is to define and make its purpose clear. And it is what this article suggests above.
It is also essential to clear the purpose of such programs to the team responsible for its implementation.
If the management that implements the employee rewards programs is not clear with its purpose, the desired results cannot be achieved.
5. Review/Evaluate the Employee Rewards Programs
The last practice for employee rewards programs is to evaluate and review the entire program.
It is of utmost importance to review the employee rewards programs. So a company can evaluate if such a program is yielding any results or not.
The factors for evaluation in this regard are the following:
- If the employee productivity and engagement has increased or not.
- If the productivity and engagement have increased, to what extent then.
- If and how the business/company has benefited from such a program
Employee rewards programs make and keep the employees motivated. Such programs are also important when it comes to keeping the employees stay on the course.
The practices, however, for employee rewards are equally important.
Clear objectives, non-monetary rewards, employee involvement, briefing the management, program evaluation are some of the best practices for employee rewards programs.