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For businesses of today, employee rewards and benefits are essential considerations when it comes to retaining employees.

Employees are motivated to perform more productively and achieve great things when given rewards and bonuses.

You may boost your team’s productivity by developing the correct rewards and recognition program and allowing for some professional freedom.

What Are Employee Rewards?

What Are Employee Rewards

Employee Rewards” is a collective term used to describe all the monetary and non-monetary benefits an organization provides to its employees to achieve desired results.

Difference Between Pay And Rewards

Difference Between Pay And Rewards

The difference between pay and rewards is that pay refers to monetary compensation provided to employees based on their performance.

Pay is given to attract talented and qualified individuals to join a business as its employees. In contrast, rewards are provided to incentivize employees to do well on the responsibilities assigned to them.

The Purpose Of Employee Rewards

The Purpose Of Employee Rewards

Employee rewards and recognition are now an essential component of every successful company. Its unique approach to giving value to your workers’ accomplishments is what has made it so appealing.

Today’s human resource professionals are doing everything they can to leverage it even further through innovative reward and recognition schemes.

Giving out praises and bonuses has been around for a long time. When a person receives an acknowledgment for an excellent job, they are thrilled. It also motivates individuals to keep improving and unites them to bigger aspirations.

Types Of Employee Rewards

Employee Rewards can be classified into many types depending upon the needs and resources of an organization. However, here are the three main ways to split employee rewards into categories.

Intrinsic Rewards Vs. Extrinsic Rewards

Intrinsic Rewards Vs. Extrinsic Rewards

The intrinsic benefits of a job are the satisfactions that one derives from it. These are self-initiated pleasures, such as taking pride in one’s job, feeling accomplished, or being a team member.

Flextime, job enrichment, shorter workweeks, and job rotation can also provide intrinsic incentives by giving exciting and challenging positions while ensuring the individual more freedom.

Extrinsic rewards, on the contrary, include money, promotions, and fringe privileges. Their commonality is that extrinsic rewards are outside the task and originate from a source other than the individual itself, mostly management.

Monetary Rewards Vs. Non-Monetary Rewards

Monetary Rewards Vs. Non-Monetary Rewards

Employees that are driven by money respond well to monetary rewards. An annual or semi-annual bonus is a famous example of a monetary compensation scheme.

This kind of incentive promotes healthy competition among employees in terms of performance and efficiency.

Employees’ psychological demand to be recognized for their work is satisfied by a non-monetary reward system. It might be as essential as an employee recognition certificate for “employee of the month” or “top performer.”

Read More: Top 8 non-monetary incentive to reward the employee

Performance-Based Rewards Vs. Membership-Based Rewards

Performance-Based Rewards Vs. Membership-Based Rewards

As the name implies, performance-based rewards are linked to an individual’s, team’s, group’s, or department’s capacity to fulfill the desired level of performance.

On the other hand, individuals, teams, or groups receive membership-based rewards.

Annual cost-of-living raises, pay increments, and bonuses due to time in rank, seniority, labor-market circumstances, qualifications, or future potential are frequent examples of these rewards.

What Are Good Employee Rewards?

What Are Good Employee Rewards

If you want to know what would be a good reward for achieving something, that can be a tricky question to answer. That is so because it can vary from task to task and even person to person.

However, years of research have proven that there’s more to an employee’s motivation than his salary & a few bonuses.

According to a study by Incentive Marketing Association, it was found out that “65% of the employees prefer non-cash incentives”. This fact lays the importance of a balance between intrinsic and extrinsic rewards for motivation.

How Can We Motivate Our Employees during Covid 19?

How Can We Motivate Our Employees during Covid 19

Talking about scenarios after the Covid 19, the pandemic had a variety of effects on humans. Many people have been financially impacted to varying degrees, while others have discovered a chance to save and cut back on their expenditures.

People have reported diverse degrees of isolation, with many, particularly those ordered to quarantine, feeling nearly wholly alone.

As a result, it’s critical that the way you compensate employees reflects these circumstances.

A monetary incentive for all employees, for example, would be fantastic. Still, for those who were able to save some bucks but felt alone as individuals due to isolation, a bonus of extended yearly leave would be even better and may help them feel less lonely if lockdown limitations are relaxed.

What do Organizations Expect?

What do Organizations Expect

Most organizations fail to apprehend that most of the things they only focus on are membership-based rewards for their employees. For example;

  • Periodic Salary/Remuneration Increase
  • Retirement Plans
  • Ping-pong or Foosball Table
  • Company perks like phone, health insurance, etc.
  • Periodic performance reviews
  • Performance-based promotions

These things have now become a basic necessity for an organization to exist with a mediocre to somewhat good workforce. However, managers need to look at the big picture for an organization to excel in the true meaning and to have an outclass staff.

What Do The Employees Want In Reality?

What Do The Employees Want In Reality

Let’s face it, this is 2021, and the way organizations used to function from the inside has changed dynamically. In the past, just handing over cash allowances to the employees was considered enough for employee satisfaction.

Organizations of today need to improve their ways of rewarding their employees. The focus should be on effective and continuous employee communication while summing up all the rewards under one big umbrella.

While we talk about the employees’ wants, they relate more to the intrinsic and non-monetary rewards. In any organization, the employees working for a 9 hours shift – 5 days a week, the monetary rewards alone can’t just stretch their motivation bars higher. What they really want is;

  • A sense of direction and realization of their goals
  • Flexibility in their working hours
  • Support from the managers where they not only push feedback down the lane but also sit down with their teams and help them in solving their problems
  • Due recognition, respect, and appreciation for the excellent job done
  • A sense of significance that what they do matters to their organization
  • Opportunities to learn new things that may help them in the advancement of their careers

When an organization successfully provides its employees with these feelings, success becomes only a matter of time.

Final Verdict

To sum it all, the true essence of employee motivation lies not in any single reward type. It happens when the organizations successfully implement a good blend of all sorts of rewards for their employees.

The HR departments of modern organizations need to be more active in finding out the actual desires of their employees. Once they do that, it will become way easier to reward their employees in the exact proper manner.

An easier way of doing that is to implement an employee recognition and rewards platform like BRAVO!. BRAVO! can provide you with an opportunity to conveniently advertise management’s performance expectations while letting the employees decide rewards for themselves.

Learn more about BRAVO! Here.

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1 Comment

What's Holding Back the Employee Rewards Industry? – BRAVO! Customer & Employee Experience Management
November 14, 2019

[…] Moreover, there’s a major misconception among managers which is; cash rewards are better than intrinsic rewards. Wrong concepts like these have also harmed the image of the employee rewards industry. Read more here: Employee Rewards: Expectations Vs. Reality […]

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