What are employee rewards and what do they do? Rewards secure loyalty and strengthen engagement with anyone who is valuable to your business. Points, gift cards, incentives and merchandise are commonly used tools by companies to reward and recognize their employees, sales teams, channel partners and clients.
Why is it important to reward employees?
Employee rewards are important in a company’s culture, and rewarding employees for their efforts has some advantages for both parties. Showing employees how much employers or companies appreciate them can boost productivity, encourage teamwork, and even help attract talented recruits to the said company.
1. Employee Retention
Approximately 50% of employees are looking or would consider leaving their company because of compensation, 45% for career advancement, and around 20% due to a lack of rewards and recognition. In addition to keeping current employees, rewarding employees can also attract potential recruits.
Employee engagement is critical, especially given the current skills gap, making it even more important to retain talented employees. Employees who are recognized and praised for their efforts will be more satisfied with their jobs and, as a result, more loyal to the company. If companies stop rewarding their employees, they risk losing them to another employer who values them.
2. More Productive Manpower
Finally, employees who enjoy their jobs and feel valued by their employers will be more productive. This applies to both big and small victories. Rewarding employees does not always have to be an expensive gesture; a simple thank you email can also go long. According to studies, a simple expression of gratitude from someone with authority can productivity by more than 50%.
Recognize the hard work employees are already putting in if employers want to keep them operating at peak productivity.
3. Morale Boost
Employee morale improves on an individual level when managers understand the true purpose of employee recognition. High morale leads to increased productivity, creativity, and overall happiness.
Most employees would surely believe that respectful treatment of employees at all levels is an essential contributor to their job satisfaction.
4. Attracting New Recruits
Following on from this, satisfied employees are more likely to recommend the company as an employer. Finding and hiring new employees can be difficult, so do everything you can to make the process go as smoothly as possible. Employer branding is becoming increasingly important in today’s workforce. With anonymous review sites like Glassdoor allowing professionals to share their honest opinion about a company online, any negative reviews can be highly damaging.
It is evident that rewarding employees is more than just a way to boost an employee’s ego, it also has several significant benefits for employers. No one wants to feel undervalued at work, so all employees should receive rewards for their efforts. There are numerous ways for employers to show employees that they care, ranging from simple gift cards to humble thank you note and financial and non-financial rewards.