When your employees perform well, you would definitely reward them. Things that are appreciated are being repeated. That’s the people who give the most important time of their lives to help you and your company grow. When you see them performing well and beyond the expectations, reward them so that they work even smarter and harder.

Sometimes when you reward your employees, there are several factors that you need to care about. This leads to the demotivation in others who are not as much smart as them but still they do contribute. So, while devising the plan for rewarding your employees keep these things in mind.

Moreover, here we have gathered the pros and cons of the employees’ rewards. Have a look;


The building of healthy competition

When employees see the competition, they would strive for better. When they see they would be rewarded upon performing well and the accomplishment of their tasks, it automatically doubles their effort. There is a sense of going further. It will create a healthy competition among the employees.

Objectives and goals become streamline

A good employee would always know about his work. What is expected of him and what he has to do. He knows everything. He doesn’t have to go and ask his boss, again and again, to tell him what to do. But, his goals and objectives are defined by himself already and he will keep working on that. Hence, rewards streamline goals and objectives.

Employee retention

When the employees are appreciated on monetary accounts for their efforts, they will feel happy. And happy employee always brings more productivity as compared to the unhappy employee. When they feel like they are acknowledged for the work in every term, they will stick to you.


Employees get discontented

One of the major reasons for not getting rewards is resentment. Employees who are trying to perform but couldn’t show the desired results, they feel quite unhappy. They get jealous of their subordinates who get the reward and they don’t. Sometimes, in the worst cases when their pays are cut off, it causes rage among them. Hr department should look into it and upon their feedback set some standards for them as well.

Built-in limitations

It varies from job to job nature. For example; if you are a business developer than it is easy to reward upon the number of leads you generate. But, if you are driving an Uber and being incentivised upon the completion of a certain number of rides irrespective of what kind of service you provide to the riders.

Employees start bluffing

When you assign the checklists or introduce any metrics upon which they will be evaluated, they will start manipulating it. In order to achieve their targets, they will compromise on quality or customer relationships. Where target setting is good for the sales but it will also make them dishonest.

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