The Basic Principles of an Employee Reward Programs
Employee reward programs are proven to increase moral and productivity, retain your most gifted staff, and improve job satisfaction. With a carefully crafted recognition strategy a company produces better results and bigger profits.
The type of employee incentive programs you choose depends on how big your company is, what budget you have and the attitude of your employees. Before you decide which policies to introduce you should consider the options to determine which is the best fit for your firm.
You can either recognize individual, teams or groups of employees. For example, large companies with target â€“driven teams could introduce an incentive whereby the teams have to compete against one another to win. Recognition for their achievements is then thanked with a reward.
The reward does not have to be major every time, but it cannot be too little too often either. If you are rewarding teams you should set short-term goals and generate some healthy competition between teams. You could even have an overall table like sport teams do and boost morale with some fun and excitement.
Rewarding strategies with individual is more about emotion and have to be handled more carefully, especially if we are talking about long-term incentives such as a promotion or pay rise. It helps to break targets down into short term measures and offer private rewards like dinner with managers to offer a sense of pride and accomplishment.
Another strategy is to have competitive reward programs whereby you offer a reward to the top performer such as most sales in a week. These types of programs have proven to increase productivity by 27%, but because not everyone gets rewarded, even others who over-achieved or met their targets, motivation may be harder to maintain.