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Employee Reward Programs

The Impact of Rewards on Performance

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Many employers across the planet use a rewards system of some kind to aid in motivating their employees. In the United States alone, 78% of the companies surveyed reported using some sort of rewards system for their employees.
What They Do
Rewards for employees have a variety of effects, ranging from small to large. First and foremost, they aid in job satisfaction. In today’s business environment, worker satisfaction is an important employment consideration. Survey after survey has shown that the generation of people currently entering the workforce places a high value on workplace happiness, and they are willing to take their skills elsewhere if they don’t feel appreciated. One of the most obvious contributing factors in job satisfaction is income. Income has been shown to consistently have a positive correlation to higher levels of job satisfaction. Income can include many things, such as bonuses, commissions and rewards. The job satisfaction of a company’s employees should always be on the minds of those running that company. Employees that are happy with their work are far more likely to stick around. Additionally, job satisfaction and happiness in the workplace have been linked to a number of positive effects.
Why It Matters
Employers may wonder why they should be concerned with the job satisfaction of their employees. The answer is simple: employee satisfaction will bleed over into their work and have a direct effect on the business. When employees are unhappy with their work, they are much more likely to report job induced stress. Additionally, dissatisfaction is contagious. If there is one employee in a business with a negative outlook, every other employee he or she comes into contact with will be affected by that attitude. This wave of negativity can wash over the entire workforce of a business, which will undoubtedly affect the company as a whole. When an employee is unhappy at work, their productivity drops, they may have difficulty staying on task and completing projects in a timely manner. In an environment where employees work closely with one another, one team member not pulling his or her weight will immediately impact the rest of the staff. Resentment builds quickly in these situations, particularly when other employees have to take on extra work to compensate.
Make One Small Change
Employees unhappy with their job will frequently cite a lack of appreciation as a contributing factor. Yes, wages are a monetary form of appreciation. However, that kind of sterile attitude will do nothing to create an effective, productive work environment. Simply remembering to reward an employee every so often can go a long way toward improving job satisfaction. Seasonal, annual or monthly rewards will express appreciation and aid in motivating employees. When employees feel their work is appreciated, they are far more likely to develop a sense of loyalty for their employer and workplace. It doesn’t take much. A thank you card or a box of chocolates can go a long way toward making an employee feel noticed and valued. Once they feel that appreciation, they will return the sentiment with positive attitudes and productivity.

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