Elevate job satisfaction and drive engagement by rewarding employee performance.
I sliced my finger chopping vegetables the other day.
As I bandaged my finger, my first impulse was to blame the knife. Its job is to cut things cleanly, not glance off into my poor skin. But, it was really my fault for not keeping my blade sharp and cared for.
Sure, your employees’ job is to serve the company’s customers. But if you don’t care for your employees and reward them for a job well done, you only have yourself to blame if their productivity slips, or they find a job somewhere else.
A strong employee rewards program shows your workforce you recognize and appreciate their contributions. Rewarding employee performance drives engagement, productivity, and retention that pays long-term dividends for your company.
Employees who feel adequately rewarded for their great work enjoy a stronger connection to your company, commit more deeply to the company’s goals, and spread those positive vibes to their peers.
Job satisfaction is not just about the paycheck. How an employee feels about their job has just as much to do with the recognition and appreciation they receive for their extra effort.
A staggering 82% of employed Americans report feeling underappreciated by their supervisors, a situation that can erode morale and employee satisfaction over time.
Rewarding employees for their contributions is a straightforward, yet powerful, way to elevate job satisfaction and help them feel proud of their good job. This benefits the individual, but also bolsters the company's overall success.
Employee performance is the linchpin of organizational success, directly influencing productivity, quality, and innovation. A well-structured rewards program, aimed at acknowledging and enhancing high performance, encourages employees to pursue and achieve higher performance standards.
By aligning rewards with specific achievements and company goals, companies not only foster a culture of continuous improvement but also encourage their workforce to consistently elevate their capabilities.
Rewards tied to better performance serve a dual purpose—they not only motivate the recipient but also set a benchmark for their peers. This creates a healthy competitive environment where everyone is motivated to improve, not just to gain rewards but to contribute meaningfully to the organization's objectives. It's a positive reinforcement loop where meaningful recognition leads to employee motivation, which in turn leads to further success.
Implementing a rewards program that focuses on excellent performance transforms the company culture.
When employees feel recognized, they're more likely to spread positive energy and motivation among their peers, creating a ripple effect of engagement and productivity throughout the organization.
Recognizing and rewarding performance creates a positive and supportive work environment. It boosts employee morale and fosters a sense of pride and satisfaction in their good work. When employees feel valued and appreciated, they are more likely to have a positive attitude, collaborate effectively with colleagues, and contribute to a harmonious workplace culture.
Employee retention is closely linked to how valued employees feel within the organization.
By acknowledging their hard work and providing opportunities for growth and reward, companies can foster loyalty and reduce turnover rates. Small, personalized rewards provide more opportunities to show your employees you care.
An effective retention strategy not only saves on recruitment costs but also ensures a stable, high-performing workforce committed to the company's long-term success.
A thoughtful approach to rewarding productivity acknowledges better work and aligns employee efforts with the company's strategic objectives.
A Harvard Business Review study found 40% of American workers would put more energy into their work if they were recognized more frequently. Employees are more productive when they understand what is expected of them and how their work directly contributes to the organization's success.
Clear communication about performance goals and how they tie into rewards can empower employees to focus their efforts more effectively, leading to better outcomes.
Employee rewards come in two flavors. Intrinsic rewards eschew money in favor of latching onto an employee’s personal motivations. Extrinsic rewards are tangible and come with monetary value.
Money is motivating … to a point. Many psychologists have found that, beyond a certain income level, intrinsic rewards often outstrip extrinsic rewards.
Intrinsic rewards help employees associate positive emotions with valuable work outcomes. When employees have positive feelings about your company, they’re more likely to stay longer, enjoy the job more, and have more success, according to the National Institute of Health.
Non-monetary rewards are also the easiest to incorporate into your organization today. Sometimes, the best rewards can be as simple as a handwritten note, or personalized digital thank you card.
Another great place to start is at your next monthly staff meeting by taking a some time at the start of the session with public praise of some of the excellent work employees have been up to since the last time you all got together.
These positive affirmations are even more effective when they come from higher up the food chain. Have your senior leaders pop in to meeting on a regular basis to thank employees for specific successes.
You should also make sure to connect your employees’ work to customer satisfaction as often as possible. Whenever a customer cheers your entire team’s work, pass that message along to the team so your employees can see the significant impact they have.
Money talks. And rewarding your employees with financial incentives and tangible rewards shouts your recognition for their efforts loud and clear.
Extrinsic rewards require more budget than their intrinsic brethren, but they also are one of the best ways to have a more immediate effect on employee engagement. Think of it this way. When you invest in your employees, they are more likely to invest in the company.
Often, this looks like a salary increase, monetary bonuses, or promotions.
But, these financial rewards don’t have to be extravagant. Consider giving your sales team members digital gift cards for exceeding sales quotas, for example. Or give your engineering team extra vacation time to celebrate their hard work getting a new software update out the door ahead of schedule.
One way to finagle the budget for this type of program is to parcel out your typical year-end bonuses throughout the year. A 2018 Cornell study found that smaller rewards given closer to the desired action were actually more motivating than the bigger, but delayed reward.
Another great way to reward individual performance that serves both the company and your employee is to invest in their education.
Offer to pay the tuition for a continuing education course, or buy an expenses-paid trip to an industry conference for your top talent. Or, let them choose a special project that will help them gain new skills and experiences.
OK, so you’re sold on why you need an employee rewards program, but how do you actually make it happen?
An effective reward system must be fair, equitable, transparent, and consistent. We've got some best practices to help get you started.
Employees need to know from the jump what they need to do to earn a reward. You should personalize specific goals based on the employee’s role and their experience. Each goal should be specific and measurable so everyone knows the expectations.
Those goals should tie back to the company’s overall objectives, that way you are maximizing employee productivity.
The reward should be consistent with how difficult the work is, and how valuable the outcome is to the organization. If you reward a sales rep a $10 grocery card for tripling their sales quota, no one is going to try very hard.
Likewise, if the reward is for something an employee doesn’t use, it’s not going to provide much positive feedback for their good performance. That’s why you should make your reward flexible and personalized.
Not every gift is going to motivate every employee in the same way. It’s best to use a variety of rewards, including thank you cards, gift cards, days off, public recognition, and professional development opportunities.
This mix of rewards also helps you create an employee rewards program that is financially sustainable in the long run.
You can’t just sharpen your knives once a year, and annual performance reviews aren’t sufficient either.
Don’t tie your employee rewards program to a once-a-year conversation. Instead, integrate frequent recognition and consistent meetings with your employees that offer more opportunities to reward effort and outcome.
Even better, don’t wait for the next meeting to reward an employee who is going above and beyond. Rewarding someone in real-time is a better way to reinforce positive behaviors.
Effective employee recognition programs are crucial for nurturing a vibrant, productive, and loyal workforce. But for larger companies especially, managing diverse and meaningful rewards can be challenging.
Giftly's platform aligns with the essential elements of a modern rewards program, offering a variety of choices that cater to individual preferences. It’s a simple, yet effective way to say "thank you" in a manner that resonates with each employee.
While Giftly can be a part of your rewards toolkit, remember the heart of your program lies in genuine recognition of your employees' efforts and achievements. Whether it's through a personal note of thanks, a day off, or a small token of appreciation, the goal is to make every employee feel valued.
Gifts & Rewards Perfectly Suited to Your Business. Easy to send. Awesome to receive.
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