Table of Content
2. What Are Rewards?
3. Why Use Rewards As a Motivational Tool?
4. Rewards Should Be Consistent With the Company Culture
5. Developing an Effective Reward System
6. Provide Recognition as a Way of Rewarding Employees for Outstanding Performance
a. Delegate tasks according to their strengths and areas of expertise
b. Recognize their good work with public praise on social media channels
c. Allow them to earn a higher rank within the company hierarchy, such as promoting or raising pay.
d. Provide bonuses or commissions for exceeding expectations or meeting quotas
e. Provide opportunities for professional growth, such as training sessions and tuition reimbursement programs
f. Create a comfortable work environment where employees can feel proud and valued, like unlimited coffee (or tea) breaks, nap rooms, etc., as well as complimentary snacks and meals.
The job market is so competitive and it is hard to find the right talent. However, it is not necessary to bribe your employees with bonuses or prizes. To motivate them, you need to focus on their intrinsic motivation.
One way you can boost a worker’s intrinsic motivation is by rewarding them with a performance-based award in line with company goals. It doesn’t have to be something expensive like a new car. It could be a simple certificate or a public recognition from the founder of the company. Doing this will show your employee that they are doing a great job and will encourage them to work even harder next time.
What Are Rewards?
Merriam Webster gives the dictionary meaning of reward as follows:
Something that is given in return for good or evil done or received or offered or given for some service or attainment.
Famous Toronto restaurant that rewards employees by giving them part of the company. A perfect example of reward for staff’s loyalty to the business. All these happened in Oyster Boy amidst the pandemic.
It applies to giving something to (someone) to recognize their services, efforts, or achievements. Colquhoun appreciates six staff that helped the restaurant succeed during lockdown and COVID-19. Read the story further from here.
Why Use Rewards As a Motivational Tool?
You’ll get knowledge of the types of rewards that will be beneficial to different people. Directors, HR, or management should identify the kinds of rewards staff consider worthwhile. Having this information on hand will significantly aid managers in making the best rewards and decisions.
Worker motivation is heightened when they know their efforts will be rewarded. In simple terms, it recognizes someone who has done an excellent job.
Employers should reward the workers’ performance. Motivating them with punishment is not different from effectively threatening them on the job. As an employer, we need to ensure that staff show up for work, but more importantly, that they are motivated to work hard.
Reward as motivation can be defined as the urge that motivates someone to act, perform, or do something without undue pressure to achieve a particular goal. Human Resource Management is rapidly changing in its nature, understanding, functions, and purpose, so every organization must find ways to adopt rewards as a motivational tool.
Rewards Should Be Consistent With the Company Culture
As a typical example of company culture, the Oyster Boy is interesting and distinctive. When Colquhoun rewarded his workers and made them (staff) owners of the restaurant, he knew what he was doing.
Note that a reward system is a program set up by a company to reward its employees. Developing an effective recognition program requires a strong sense of reward on the small business owner’s part. Although motivating employees is essential, you must examine the impact on a company’s culture before implementation.
What is company culture?
In a company, culture represents an organized system of values, practices, and expectations that guides and informs the actions of all colleagues. Not to be confused with the company mission or vision. When a CEO can respond to a crisis, how a team adapts to changes in customer needs, or how the manager corrects an employee who slips up, a company’s culture is evident.
The company culture should be defined by teamwork, performance, resilience, trust, innovation, and integrity. Oyster Boy possesses these qualities.
Developing an Effective Reward System
You must tailor the organization’s reward system towards these guidelines:
Appreciating contributions, Recognizing achievements, Increasing compensation, and Providing perks.
Appreciating Contributions: acknowledging an employee’s contribution in a public manner.
Recognize Achievements: It could be an invitation to have dinner with the boss at a fine restaurant to recognize achievements. The recipient may also receive a tour of the company’s headquarters, a gift certificate, or a paid day off.
Increasing Compensation: It is not uncommon to receive a raise along with a promotion and increased responsibilities.
Perk: A perks package is a benefits package such as a flex-time schedule or paid time off. There can also be indirect benefits. For example, the company might donate to the employee’s favorite charity after a company appreciation dinner with the boss.
Provide Recognition as a Way of Rewarding Employees for Outstanding Performance
Employee rewards and recognition programs are a great way to motivate employees. Providing psychological benefits as well as financial benefits is what they intended to provide. There are many legitimate ways to reward exceptional performance and, one example is to reward employees for changing their work habits and key behaviors.
Delegate tasks according to their strengths and areas of expertise
Delegating tasks means assigning responsibility or allocating a task to a person. And why is delegating tasks important to any organization? It is the best method of managing skills for the advancement of the company. Delegating is not just about the productivity of the business but about the workers of the company.
When the right people are delegated for tasks, it will increase the level of productivity. Whoever is assigned such tasks must be competent to deliver. Sometimes it may be necessary to monitor and guide staff during tasks to achieve the best outcome. Try to explain what needs to be done and how you think it will be done but create room for questions or discussion about the task because this can produce better options for doing the task.
Recognize their good work with public praise on social media channels
People want to be valued, respected, and even loved. Businesses use social media platforms to promote products and services nowadays. In the same vein, social media can be used to praise and recognize the staff. Please give them a sense of belonging, so that they’ll feel that they’re part of the company.
You can feature them on the business page or profile pages of your social media. Take, for example, if you have an award, let it be published online. This will go a long way in increasing the level of motivation for all staff.
Allow them to earn a higher rank within the company hierarchy, such as promoting or raising pay.
In an organization, the organizational charts or hierarchy is very important. It is graphically structured like a pyramid or flat chart showing employee status related to other people within the organization. In this type of chart, you’ll find higher cadres on top and lower cadres below them.
When people are promoted in an organization, it tends to bring out the best in them. The promotion usually comes with an increment in payment. This will help the company retain staff and be able to have good hands for the job.
Provide bonuses or commissions for exceeding expectations or meeting quotas
Word Web Dictionary wrote that a bonus is an additional payment (or other remuneration) to employees as a means of increasing output or anything that makes one feel encouraged. Commission means a fee for services rendered based on a percentage of an amount received, collected, or agreed to be paid (as distinguished from a salary).
Bonus structures, sales quotas, and performance may contribute significantly to earning compensation. Unlike commissions, bonuses are typically a set amount and are base on individual and corporate goals. Having an incentive for all employees helps motivate them.
Although the quota provides insight into potential earnings, sometimes, once staff reach quota, higher commission rates motivate them to exceed that goal.
Provide opportunities for professional growth, such as training sessions and tuition reimbursement programs
It could be hard to keep and motivate employees in today’s business world. A lot of juicy opportunities abound, and failure to provide one may decline their loyalty to you.
So what must an employer do?
Provide management and leadership training: Impact your employees by sending them on training. It would help develop confidence in the management team and impact employees too.
The training could be online courses for professionals, webinars, seminars, or workshops. Most of these training programs offer valuable learning opportunities online.
Professional certifications: Acquiring a professional certificate may be another way for a company to motivate. A professional certificate is different from a degree and could help make staff change roles and perform better on the job. Having such a professional certificate can warrant more tasks. Professionals can multi-task with Human Resources, Accountant and Audit, Legal, etc.
Technical skills training: We can’t forget the technicians in this discussion. But it depends on the nature of the business to find out how effective their services are required.
All organizations have needs base on the standard of operation. Workers in this field of occupations want to advance their skills.
Technical skills are media and publishing, Architecture and engineering, IT, and others. Getting a certification would push this personnel to remain competitive. You won’t need to outsource tasks; facilitating technical training can keep your staff.
Employer-subsidized degrees: Employees might be looking for an opportunity to further their studies. Because of financial constrain, they may not be able to apply for degree courses as intended. The company can help them subsidize this fee, and doing so would help keep them in the company for a long time.
Continuing Education makes staff more valuable in an organization. Boost staff’s future engagement upon completion because of improved status and payment.
Create a comfortable work environment for employees.
1. Having food and drinks
Provide staff with a microwave so they can reheat the food they brought. When you can’t buy hot food near your workplace, this is especially important. It might seem like a good idea to install a drink dispenser, but most machines serve hot drinks that taste very bad. Therefore, keeping a kettle, mug, coffee maker, tea bags, and other beverages in the kitchen is highly recommended.
Delegate daily milk purchases and invest in a small refrigerator. Make sure the cleaner is responsible for cleaning the kitchen and refrigerator. Water coolers can help employees stay hydrated throughout the day.
2. Creating a comfortable environment
Provide employees with space during breaks so that they can relax. Separate the workspace from this area. The chairs, tables, and sofas should be provided in the seating area. Employees will have lunch there and can read many magazines.
3. Decorative elements
Bright colors make your workspace more cheerful and stimulating. Put up some artwork or a mural if you can. Reduce the risk of repetitive strain injuries in your employees by purchasing ergonomic chairs and desks.
4. A social event
Incorporate creative social events after hours into your business plan to generate community spirit. You might play chess, table tennis, etc, after work on Friday, go to a restaurant for dinner on holidays, or an after-work drink on weekends. Colleagues can better know one another through social events. Useful for collaborating more teamwork in the workplace. Certain employees, however, are not required to participate in social activities and are unable to do so due to other obligations.
5. Meeting with the staff
All employees participate in the development of the company by attending monthly team meetings. During these meetings, you can keep everyone updated on new customers your company has acquired or if it is considering launching new products or entering new markets. Encourage employees to ask questions or make suggestions about how the business can grow or improve.
Informing employees about inevitable setbacks or events is not appropriate, but appraisals are essential for creating a sense of belonging to the organization. A person who does not know what’s happening can feel ignored, underestimated, and demotivated.
6. Make yourself approachable
Every once in a while, you should walk to the office and chat with everyone, no matter how busy you are. Check-in on everyone and find out how they are doing. Consider them humans and treat them accordingly. Your commitment is greatly appreciated. Your company will benefit from employees who feel valued and who have valued themselves. Show your appreciation to everyone by walking around the workplace.
A simple “thank you” is enough sometimes. Your employees will remain loyal to your company for many years if they enjoy working there. Your employees will be more motivated and devoted to your organization if they feel valued and appreciated. Create an environment that makes your employees comfortable, so your business will be successful.
Every business should be sensitive to how they run an organization if they want to have a going concern establishment. Never underestimate the people that work for you because your progress or downfall depends on their efforts.