Recognizing and rewarding employee performance is critical for boosting morale and increasing productivity. The more employees are rewarded for their performance, the more valued they feel in the workplace. This leads to greater job satisfaction and more motivated employees. This is a highly effective management tool because after all, there is no one in the world who doesn’t like to be rewarded for their hard work. Therefore, it is important to implement an effective employee recognition and reward system. Here are a few tips for coming up with effective and well-designed reward program.
- Make sure the program is clearly defined and every employee is aware of how it works.
- It should act as a tool for improving the retention level of your best employees.
- It should account for employees at all levels and in every position.
- It should improve confidence and self-worth among employees.
- It should be a means for increasing the overall productivity of the workplace.
- It should include both formal and informal rewards.
- It must be completely unbiased.
Establish a Budget
Not every business is capable of handing out lavish rewards and there are plenty of ways to reward employees without spending any money at all. In order to decide what is right for your business, set up a committee and establish a budget that is practical for rewards. Designate an amount that you can afford to spend every month or every year. This will help you come up with ideas for your rewards.
Every successful reward program will have a set of criteria for which rewards will be given. It is important to set guidelines that are fair and unbiased and share these specific criteria with employees so they know what kinds of accomplishments will earn rewards. Some potential criteria include:
- Length of service
- Excellence in performance
- Leadership qualities
- Personal accomplishments
- Team accomplishments
- Goals or milestones reached
Select the Rewards
There are infinite possibilities when it comes to rewarding your employees and they can include both monetary and nonmonetary rewards. A few examples of rewards are:
- Gift cards
- Cash rewards/Bonuses
- Plaque or Award
- Extra vacation day
- Free lunch
- Flex time
- Take them out to lunch or dinner
- Goodie bags
- Personal thank-you note
- Employee honor roll with pictures or names of employees