Even though some companies use employee rewards to motivate their staff, many do so without realizing how they work. This is why the results they achieve are also mediocre and lead to less involvement from the management. Continue reading to find out how to avoid this and what no one is talking about in the world of employee rewards:
1. Reward behaviours, not results
When used properly, employee rewards can lead to higher productivity and more job satisfaction. However, in order to do this properly, you need to reward good behaviours instead of good results. Why? Take this story for example: you have promised to reward your sales team with a bonus if they reach an X amount of revenue. However, what happens when they do achieve it? There is no motivation for them to continue working hard.
In addition, you also take the risk of giving goals which are too unrealistic. This leads to your employees not even trying to achieve them because they know it is impossible. What you have managed to achieve is the exact opposite of what you meant to: you have effectively demotivated your employees.
2. Connect employee rewards and customer feedback
Another thing nobody is talking about is connecting your employee rewards and your customer feedback. When you receive good feedback from your customers, use that to allocate rewards to the team or person responsible. This will show your employees that what they do has a direct impact on the success of the company. Thus, you will encourage positive behaviour and your staff will start their day with a purpose. You will be surprised how much more productive your employees will be once they can see the importance they have in your customers’ lives.
3. Bad management
We have all heard the saying: “People leave managers, not companies.” A good manager will motivate and inspire their employees. A bad manager will intimidate, disappoint and despair their staff. If your company is experiencing a high employee turnover and you are not sure why, look into who your managers are. One in two employees has left a job to get away from a manager and improve their overall life at some point in their career, according to Gallup’s “State of the American Manager” report.
Unhappy, unhealthy employees affect absenteeism, performance, customer feedback, product quality and ultimately your profits. According to the report mentioned above, 70% of the variance in employee engagement is accounted for by managers! Therefore, make sure that you promote the right people and you offer proper managerial trainings. Because a great manager is a gift that keeps on giving!