Most employers have some type of mechanism in place to address rewards and/or recognition. A formal and structured program, however, tends to be more meaningful and transparent than most informal ones. In any case, it could be a good idea to assess the value your program offers. Managers intent on sustaining morale would also do well to reacquaint themselves with how the needs of their workers have changed, especially in the midst of the drastic pandemic shift.
A structured program for employee rewards and recognition is essential to both workforce and business success. As far as workers are concerned, a structured program gives them specific targets for which to aim. When they achieve these targets, they earn rewards of monetary or non-monetary nature or both.
This, in turn, motivates them and their peers to be more productive until the next rewards cycle. From the employer’s perspective, rewards can help generate greater productive output, healthy competition among workers, and of course, greater profits. Both are distinct and equally significant perspectives that can lead businesses to success when handled well.
Conversely, rewards and recognition that are not well thought out can result in several undesirable situations. Too little in terms of recognition or meaningful rewards are almost always sure to lead to a demotivated workforce and diminished productivity. Too much can lead to wasteful payroll spending and even create cash flow or short-term liquidity problems. You may even find yourself in a position where you are unable to pay the next cycle of rewards. This may well end up having an impact that is the exact opposite of what was intended.
Types of Rewards and Recognition for Employees
Businesses understand that employee motivation has a direct impact on employee productivity. Many businesses also know that a rewards program can help boost motivation, job satisfaction, and the resulting productivity. The concern, therefore, becomes the proper balance of monetary and non-monetary employee rewards ideas. The right mix will sustain employee expectations and business goals in tandem. Here are a few additional considerations before settling on a program:
A Single Cookie-Cutter Approach Does Not Work
There are many diverse kinds of recognition and rewards programs. Some may be as simple as creating an employee recognition wall. Others may be much more complex. Some businesses may hand out cash bonuses. For example, sales bonuses may be based on fixed rates according to the amount by which a sales agent exceeds his or her target plan for a cycle.
On the other hand, other businesses may find gamification rewards and recognition work better with on-spot and very visible recognition for outstanding performance.
What works for one employer may not always work for another. Therefore, measuring the success of the program at each stage is crucial to any such program. Internal performance appraisal methods and payroll analytics will prove two very crucial metrics for this purpose, in addition to any specific metrics applying to a role. Employee information from a centralized hiring database, such as employee turnover, could also help to recalibrate the program as needed.
FedEx Rewards and Recognition Offer Quick Rewards
FedEx is a pioneer in the private logistics industry. The company has acquired a reputation that is synonymous with reliability and great customer experiences. However, this reputation was not built without thought; it took years of encouraging and sustaining dedicated and motivated teams of workers at every level.
With that in mind, this foundational awareness is the reason why FedEx continues to function smoothly and with minimal disruption, and a rewards program has contributed significantly to that. In recognition of dedicated performance, the company offers instant and meaningful rewards like cash bonuses, movie tickets, game tickets, vacations, and much more. This keeps the workforce motivated and performing at optimal levels.
Starbucks Rewards and Recognition Offer Employee Discounts
Starbucks calls its program the Partner Rewards program. As an institution, Starbucks does not treat its serving staff and baristas as just employees or workers. It labels them partners in order to encourage a sense of loyalty and shared vision. Starbucks is a preeminent player in the retail coffee industry thanks to its premium coffee beans, tea leaves, and blends; the rewards program is based on these strengths.
Starbucks offers its workers a steep discount on employee purchases of food, merchandise, and beverages. That’s in addition to a weekly and monthly supply of premium tea leaves or coffee grounds. The lure of premium-grade coffee and discounted access has proven to be useful in terms of the company’s talent acquisition strategies. As of 2020, it had just under 350,000 members in its workforce.
Call Center Rewards and Recognition Contain Cash Bonuses
Any sales professional can testify to the motivation needed to make a sale. In many cases, sales personnel have to contend with unwilling buyers, angry customers, and general rudeness. Even the best salesperson has had a door or phone slammed in their faces. This makes sales, particularly from outbound call centers, a very difficult role. The only effective way to take the sting out of the uphill battle is to offer concrete rewards for good performance.
Almost every call center offers a base salary along with commissions on the sales an agent makes during a set period of time. However, a cash rewards program adds that extra bit of motivation every agent needs to close on a sale. Offering instant recognition and visible cash rewards is a great way to reward both the outstanding agent as well as the rest of the sales team.
In this context, a cash reward would typically work best to sustain sales throughout the year. To further supplement this, a larger end-of-year bonus to over-performers should also do the trick.
Frequently Asked Questions
How to reward employees?
Use a mix of cash and non-cash rewards, as well as visible recognition.
What is a reward and recognition program?
A program designed to reward good performance, attitude, and dedication.
How to measure the effectiveness of rewards and recognition programs?
The resulting output is usually the best way to measure the program’s effectiveness.
How to start a rewards and recognition program?
Create a program based on workforce needs, competitor programs, and financial standing.