It may be an obvious statement, but it’s one worth reiterating: A thank you goes a long way. In business terms a small reward for employees reaps many benefits, not only for the well being of the employees themselves but also for the overall business.
Here are just a few reasons why introducing rewards in your business is really worth it:
Firstly, the promise of a reward acts as a great incentive for employees to work harder and consequently be rewarded for it. They give an employee extra motivation to go above and beyond and most importantly shows you respect your employees and value their effort.
Rewards also motivate employees to see the company’s goal as their own, this is a great way to unite your team and get them motivated to put in more effort in the interest of company success.
If the above reasons aren’t enough to persuade you, we’ll let the stats do the talking. In a recent study by Forbes, companies that scored in the top 20% for building a “recognition-rich culture” enjoyed a 31% lower voluntary turnover rate. 31% is big! Losing employees and training new ones costs a lot for many businesses, so using rewards as an employee retention strategy is a very clever thing to do.
A small investment goes a long way, with the SHRM/Globoforce Employee Recognition Survey, 2012 finding that when companies spend 1% or more of payroll on recognition, 85% see a positive impact on engagement from their employees. Here at AATI the occasional free lunch or day out always goes down a treat with the team!
Another key aspect in the workplace that rewards can help to improve is team culture. Rewards that incorporate peer-to-peer recommendations are great for team spirit, being able to nominate employees for rewards is empowering and demonstrates that co-workers value each other’s hard work.
So how do you implement these rewards? A great way is via a structured online employee recognition programme which is cheap to set up and run, this can be viewed by all your employees at any time. On this platform you can celebrate milestones for your loyal staff along with peer-to-peer nominations for rewards.
A brilliant example of an employee recognition programme in action is our parent company Instinctif Partners Pacesetters scheme. Each quarter they celebrate the individuals living the company values and setting the pace of the business, by getting employees to nominate co-workers that they believe are doing so. These individuals go on to be shortlisted and the winner receives a cash prize!