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Managers lack understanding of reward program values

By using employee reward and recognition programs, companies are able to motivate and engage front-line workers to create an enthusiastic workforce.

The right mix of rewards and benefits helps organizations improve performance. By using employee reward and recognition programs, companies are able to motivate and engage front-line workers to create an enthusiastic workforce.

However, a new study by Edenred found that these programs were poorly understood by managers. Just 26 percent of business leaders said they understood the role benefits play in supporting business performance. As companies made cuts in response to the recent recession, benefits and reward programs became increasingly important in attracting and maintaining talent. A reward program with a budget comprising 1 percent of the total payroll can increase productivity by 10 percent.

"Line managers as ever form the conduit in the business for being aware of the mechanisms in place and also for the selection and marketing of the package in the right places to motivate on an individual or a team basis," Ian Hodson, rewards and benefits manager at University of Lincoln, told HR Magazine.

To further improve the performance of their employees, companies need to ensure that their managers fully understand how reward and recognition programs relate to the overall objective of firms. Once supervisors are able to embrace the advantages of employee reward programs, they will boost productivity by making the initiatives more relatable to and effective among their staff.

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