Why Your Company Needs A Reward And Recognition Scheme
When it comes to a happy and engaged workforce, the importance of employee reward and recognition at work cannot be underestimated. The reward doesn’t necessarily need to be monetary and by building reward and recognition into the foundation of your organisation, you’ll soon be reaping the benefits of decreased turnover and higher productivity.
What is an employee recognition scheme?
Companies in all sectors can find a way to work their employee recognition programs into their structure. From warehousing and retail such as powRparts to office-based environments such as Microsoft.
A structured program can be run online and be visible to everyone. Being transparent with your employees can help them engage with it and incentivise them to improve. Most successful schemes are based around:
- Peer recognition – being able to congratulate and thank co-workers is a powerful incentive. Many employee engagement platforms have a peer-to-peer recognition feature built-in.
- Anniversary awards – loyal staff should be celebrated for their length of service
- Constant feedback and recognition – don’t wait until the end of the financial year or other milestones.
- A scale of rewards – be clear about what you’re offering so people know what they’re working towards
Employees who are happy in their roles are much more productive. Beyond this, they also take proactive steps to improve their performance and overdeliver. This is great for your company in a number of ways beyond just getting the job done.
Increased job satisfaction
When people are recognised, even with just a verbal pat on the back, it lets them know that they are doing a good job and are valuable to you. This creates a virtuous cycle of employees doing great work, being recognised for it and then striving to do even better, knowing that they make a difference.
Actively engaged employees contribute to companies in many ways beyond their basic job roles. They actively look to improve the company, motivate co-workers and go above and beyond for your customers. This creates a direct link to your bottom line. A positive and happy working environment should be the goal of every company.
Constantly replacing staff can be costly for a company and can also affect the overall morale of employees.
It also takes time and money to recruit, train and wait for people to get up to speed in terms of productivity. Reward and recognition make employees feel valued and more likely to stay.
The improvement of the workplace culture through reward and recognition brings with it enormous benefits. An integrated team that works well together and is comfortable recognising each other’s achievements is an effective team.
Post-COVID, companies are still trying to find their footing in what is essentially a different economy. While many were forced to cut jobs, companies have found it even more important to create engaged workforces and retain their best talent.
If you don’t have a reward and recognition scheme in place, then you should take steps to implement on, it can fundamentally change your business for the better.