Some companies have dedicated staff, high productivity, and rarely need to spend time and money on recruitment. So what’s their secret? The answer is both simple and difficult: as a manager, you must love your staff and provide them with opportunities for growth, fulfillment, and recognition.
As employers have come to realize that employees are the heart and soul of their company, over the past two decades. Rewards are important for recognizing a job well done, and act as an incentive that can make an employee more engaged in their work environment.
They also heighten productivity levels, keep employees motivated, lower employee turnover, retain top performers, and create a sense of belonging. If reward and recognition are not properly practiced in the workplace, it could be costing businesses time and losing quality workers.
In a nutshell, rewards and recognition are a must if you plan on creating the best workplace culture. In this article, we offer the ultimate guide to employee rewards and recognition for 2022.
Difference Between Rewards and Recognition
A reward can be considered as something given in return for a service. Usually, rewards are given by the management to the most successful employees as appreciation for their accomplishments or achievements and they can be used as a motivational tool. Rewarding employees creates competition among them to push everyone to work hard and give their best.
Rewards can be categorized into two types of rewards: financial benefits and non-financial rewards. Financial rewards are rewards with monetary values such as salary income, bonuses, incentives, and so on. Non-financial rewards are those that have no monetary value such as promotions.
Recognition can be identified as positive feedback given to an employee for their achievements and it’s a type of non-financial reward. Employees like to be recognized by their superiors for their best performance and this can motivate them to work even harder for the benefit of the company.
Recognition can be offered in many forms, for example, by extending deep gratitude, promising, respecting, offering career opportunities, empowering, providing a safe and healthy work environment, and offering awards. With the help of these techniques, the employees will feel valued and appreciated by the company and have the desire to continue to work there.
Rewards and recognition go hand in hand but are in no way the same. A reward is something that is achieved in exchange for a certain contribution, while recognition is more of a confirmation or appreciation for a certain action.
Recognize Work Success With Employee Reward Systems
In most companies today, employees are regarded as one of the most valuable assets. Companies are making even greater efforts to make employees feel appreciated as new recruitment can involve a lengthy and costly process. To drive companies to new successes and engage employees to achieve the company’s goals and visions, almost all large companies currently have some form of employee reward system.
The purpose of employee reward systems is for companies to remain competitive and maximize the employees’ well-being, happiness, and productivity. All this makes employee reward systems high in demand.
This type of system allows employers to implement different types of rewards and recognition ideas to encourage employees to give their best performance, help bring down issues such as employee turnover and absenteeism, and also attract new talents on board.
Selecting a Rewards and Recognition Platform
Technology and digitization have become an integral part of managing people and it is critical to ensure that the employee recognition program is flawlessly incorporated into the company’s existing human resources management system.
The organization’s recognition program is the ultimate way of expressing your company’s core values and it should therefore suit the company’s culture. For this reason, before choosing such a program, make sure you can customize the program to suit the company’s specific requirements and needs.
Before choosing a rewards and recognition program, plan your budget accordingly. Organize all your expenses internally before picking your program and do remember to opt for a program that gives you freedom in terms of budget allocation and how you plan on using the funds. In the process of searching for a solution provider, look for any hidden program costs like transaction fees, annual, monthly, or one-time expenses, and consider whether it will be better if you choose an external provider for your rewarding initiatives.
Knowing how to present the right recognition and reward at the right time can have amazing positive results when it comes to employee engagement, morale, performance, and efficiency.
This will boost the participation of employees, make them feel more focused and willing to invest in the company’s goals and objectives.