How to Properly Reward Your Employees

How to Properly Reward Your Employees

When it comes to the employee recognition rewards, most companies tend to reward the five years of loyal service. According to a recent report by the Bureau of Labor Statistics, the median tenure of workers aged 55 to 64 is somewhere around 10.1 years and when it comes to workers aged 25 to 34, the number drops significantly, to around 2.8. This means that a vast majority of the today’s young workers (in particularly millennials) is unrecognised for their contributions.

However, the problem is that most recognition programs today do not focus on an employee’s contributions. In fact, Bersin & Associates research has revealed that more than 85% of these programs focus solely on tenure. Although having an employee stick around for 5, 10 or 15 years is certainly something to celebrate, it does not mean that most of your workers should work for a full year without receiving any rewards whatsoever.

The fact is that hard work should be celebrated as much as tenure, if not even more.

Allowing Flexibility

Did you know that modern employees are increasingly choosing flexibility over money? According to the BLS research, more than 6 million people today are working part-time jobs because they do not want to commit to the traditional 9-to-5 routine. So, when someone exceeds what you could reasonably expect from them, why not let them cut the day short? By doing this, you will give your employees extra time to spend with their families or pursue their passions.

If an employee stayed late putting finishing touches on their project, you should tell them to come in at least an hour late the next day to catch up on their sleep. In addition, if an employee does a solid job and surpasses his goals, you should definitely allow him to take the next day off.

As data clearly shows, most people crave balance, so if you start rewarding your employees with more flexibility, you will help them create an ideal work-life balance and keep them fully satisfied.

Using Gamification

As organisations around the world shift their focus on the business objectives, the use of gamification has noticeably increased, especially in the past few years. As a matter of fact, according to the Gartner research, around 40% of Global 1000 companies are planning to use gamification as their primary mechanism to transform their operations. Why are so many organisations attracted by gamification? Well, virtual rewards like power, status, and access scale cheaply versus gifts and cash. Simply put, gamification scales.

So how does it all work? Look at it like this – when you receive your first paycheck, it feels exciting and fulfilling. Today, you surely make more money, however, you do not get as nearly excited as you did before, because it is the same stimulus over and over again. On the other hand, gamification rewards increase in intensity in order to break habituation (becoming immune to a certain stimulus over time), and keep the employees motivated and satisfied.

Rewarding with Acknowledgement

When researchers ask managers what motivates their employees, the number one answer in most cases is money. While no one will ever say “no” to extra money, a lot of employees out there go to work for something more than just cash. You see, according to research by Dr Gerald H. Graham, almost 60% of employees only need a personal thanks from a manager to feel satisfied, while more than 75% of them would feel rewarded by a written thank you note from their superior.

Ignoring this would be a huge lost opportunity. Most employees perform better, have more moral and are generally happier on the job when their manager recogniess their individual efforts. Therefore, you have no reason not take some time and reward your staff for doing a great job. For example, seeing how the holiday season is here, it would be a smart idea to hand out written notes as well as gift cards for Christmas to surprise some of your top employees.

Final Thoughts

Even if you do not have much extra money to work with, that does not change the fact that a lot of your employees are working hard for you. Thankfully, there are certain rewards that fit basically any budget, so you have no excuse for refusing to acknowledge your workforce’s contributions to your success any longer.

Just keep in mind that a satisfied, appreciated staff is a productive one, and that is something every business needs in order to grow.

Oscar Waterworth

Oscar is a writer and a senior editor at Bizzmarkblog. He is most interested in the latest developments in the marketing, business, and tech industries. If you want to be updated with Oscar's latest activity and writing, you can follow him on Twitter.

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