A reward can be defined as something that is given to someone in recognition of their service, efforts or skill. As humans our behaviour can be shaped by rewards due to the positive effect they have on the reward system within our brains. This therefore means with an employee reward scheme we can encourage high levels of work from employees which can benefit your business in many ways.
One reason to reward a team or an individual is so you can increase employee happiness. If an employee is happy in their workplace they will be more motivated to complete tasks and therefore perform at a higher standard. It is widely known that engaged staff are significantly more productive so, if their efforts are likely to be rewarded then it will make sense the employee will work harder in order to achieve the reward. Rewards can also make an employee feel more appreciated and in turn feel a sense of belonging in their workplace. This will encourage them to take pride in their work as they will realise their efforts are not going unrecognised.
Another reason to give rewards is due to retention. If staff are demotivated due to their efforts going un-noticed they may seek work elsewhere. A high staff turnover can lead to low morale within the work place which may then lead to other employee’s productivity decreasing and may even leave the company all together. This shows the importance of rewards as if you can prevent demotivation occurring you are more likely to prevent employee’s leaving which will save you the time and money of training new staff for the same position.
Rewarding individuals is also a great way to increase loyalty from an employee. An engaged employee will be able to promote your company much better than someone who does not care about it. This can then lead to your business being more successful as there will be an increased amount of people talking highly of it due to the emotional bond they will develop with your organisation.
Finally, by giving rewards you can monitor your employee’s performance better and use it as a factor when making decisions. For instance, if an employee has earned valued rewards and is working efficiently you may want to use this data when deciding whether or not to promote them to a higher position in the business. Likewise, if an employee isn’t getting many rewards you may review they are not being as productive as you would like them to be and therefore can discuss this with them in order to get back on track. Rewards can also reduce negative effects a business may face such as absenteeism. Rewards are like an extra goal for employees to aim for and by awarding them creates your business a team of motivated and hardworking staff.
To conclude, an employee reward scheme can help you retain valuable employees as well as increase motivation and productivity which will all contribute to leading your business to success. Therefore, it is crucial to invest in employee rewards.