Happy Employees are more productive, according to a research paper by the University of Oxford. And anyway, this is a no-brainer, right? The happier the employees, the more efficient they are at work. Happiness aids creativity and analytical bent of mind. Happy employees are more likely to stay and be the advocates of your brand. And not just this, they are better at handling adversity. So, the next logical question is how to ensure that your employees stay happy and inspired?
Building a conducive workplace environment that favors employee satisfaction requires a persistent effort. In this post, we are going to explore how rewards and recognition can foster a sense of allegiance towards the organization in your employees and keep them motivated. According to a survey conducted by SHRM, over 89% of HR professionals agree that employee recognition positively impacts employee experience.
With employee recognition, a sense of commitment to work and the organization increases manifold. Employees tend to spread the positive word about the organization, which in turn leads to better referrals. As per the report by SHRM, about two-thirds of the HR professionals say that employee recognition helps to retain employees. As employees feel treasured and appreciated, the attrition rate also reduces.
Organizational culture is not built in a day. It takes consistent effort to foster a positive work environment and build employee confidence in the organization. Having said that, it is never too late to start making the employees feel that their contribution is important. Meaningful recognition of employees provides a sense of fulfillment and purpose. Choosing a way to reward and recognize your employees is tricky. Consider your employees as your customers. You need to have a clear understanding of what are the key motivating factors for your employees. Below are five reward and recognition strategies to imbibe into the fabric of your organization’s culture to keep your employees inspired.
- Monetary Incentives – Monetary incentives refer to rewards presented to employees for exceptional job performance through money. Monetary incentives may include profit sharing, stock options, project bonuses, or annual bonuses (e.g., festival-related and performance-linked). Monetary incentives not only offer financial satisfaction but also boost the morale of the employees. Money is a motivating factor in most cases, but organizations need to be mindful of how this method is put into practice. Excessive monetary incentives may hamper the organization by increasing expectations or creating a negative competitive culture. What is done is as essential as how it is done.
- Non-monetary Rewards – This form of acknowledgment goes a long way as recognition itself is the focus, and the worth from an employee’s point of view is derived from the gesture of recognition. Although monetary incentives may seem to be the most plausible means of recognition, non-monetary rewards make an immediate impact. Disbursement of bonuses or pay rises can take time, meaning it may lose its impact because of the time delay. The most effective way to reward an employee is to do it right away. Moreover, non-monetary rewards are also better when it comes to retention. An employee that stays with you only for monetary benefits can easily be tempted by another company. On the other hand, non-monetary rewards help create a connectedness with employees which is not easy to buy out. Non-monetary rewards can include flexible working hours and work from home, and extra leaves.
- Off-site Trips – A company-wide off-site trip is a perfect way to reward your employees when the team meets its goals. This not only acts as a means of thanking your employees but also reinforces a sense of bonhomie among work colleagues.
- A Simple “Kudos” – Rather than going all out, a simple “kudos” or even “thank you” can be used as an effective way to recognize employees. Over 54% of employees prefer a verbal “thank you” for their daily accomplishments, as per a report by Deloitte. A small shout-out to the smallest feat or accomplishment can make a big difference in an employee’s life.
- Digital Credentials – An unconventional but novel way of recognizing employees is by issuing digital credentials. Digital credentials are digital certificates and badges which can be issued to employees to recognize their accomplishments. Be it an “Employee of the Year” certificate or a “Best Teacher” badge, digital credentials can add immense value to recognizing employees. ValidateMe.Online is one such platform used to issue digital credentials to individuals by organizations to recognize their accomplishments. None of the other ways mentioned above create a lifetime value for employees, but issuing digital credentials becomes a lifelong digital proof of the employees’ achievements. Moreover, with digital credentials in the picture, employees can share these mementos of achievement on various social media platforms – which adds to a positive brand image of the organization.
As a perfect conclusion to this post, quoting Ron Friedman, author of The Best Place to Work: “Reward frequency is more important than size. Business feedback indicates that smaller, frequent positive feedback and rewards will keep people happy longer than a single large, infrequent happy event. Even the biggest awards or raises ‘wear out’ in less than a year, with most employees responding better to small doses every few days.”
We hope you found this relevant. Feel free to write to us if this post resonated well with you.