Employee Rewards Reap Results
The way you reward people forms an essential foundation for
effective people management. Money is by no means the only
motivator of people, but too little money demotivates
powerfully. Studies have shown that material reward is far more
powerful than monetary.
1. How To Determine Levels Of Reward
To determine how much reward is appropriate, consider the
question what level of employee reward will attract, retain, and
motivate people of the calibre that you require. If an employee
does something that results in a one-time boost for the company,
a one-time incentive is most appropriate.
2. Why Give Employees Added Rewards In Addition To Wages?
Keep in mind that the main reason why you are giving an employee
reward is because you want exceptional results, not comparable
performance. Exceptional productivity will more than cover extra
pay.
- Employee rewards should be set for noteworthy achievements -
Rewards must be related to a particular completion of a given
task - Employees should be encouraged to express their recent
achievements - Ensure the employee knows they deserve it, it
will have a great impresion on their personality
3. Employee reward should never be an alternative for a
reasonable remuneration scheme
This type of award should not be set as an enduring option to
stable income amendments when, in fact, these changes should be
carried out for constant and regular completion of tasks,
excellent execution, and notable modifications in
conscientiousness, or enhanced assessment of a status. Remember
that employee reward is a one-time incentive program; therefore,
it should be set out clearly and must be understood well by the
employees so that they will know where to stand.
6. Employee rewards should not reflect the impression that these
are changes to one's basic pay
It must be set out clear to the employees so that they will not
expect anything more than what they have to receive. Make it
apparent that the extra pay is for special achievement only and
nothing else. Generally, employee rewards may be in the form of
cash incentives or non-cash fringe benefits. It could even be
something of no real financial worth such as a personal letter
of commendation.
7. Reward By Volume
If you have to use a monetary type of employee reward, give
reward based on results. This means that the employee gets a
fixed amount for a specific amount of results. In theory, this
gives the employee the best incentive to maximize output. In
fact, employees tend to put a ceiling on their earnings and thus
on their effort. Nevertheless, the key concept here is that the
management should only give an employee reward that is tied to
an individual achievement. The reward must be reasonably large
to have value - no one likes getting an overly small reward as
it could have the opposite effect and make the employee view the
company as cheap or undervaluing them. Never reward an employee
for what has been accepted as a sensible objective. It should be
given for extraordinary achievements only.