Competition and other market factors encourage managers to minimize expenses and reduce waste. Given these constraints, it can be difficult to run an effective employee reward recognition program.
Every company operates on a tight budget. Competition and other market factors encourage managers to minimize expenses and reduce waste. Given these constraints, it can be difficult to run an effective employee reward recognition program. However, studies have shown that these initiatives can boost engagement levels, increase performance and lower staff turnover.
Creating an effective reward program on a budget is easier than companies think. Many rewards, such as flexible scheduling or an additional day off, cost companies very little monetarily. Similarly, most rewards don't have to be expensive if the recognition is made public. Workers are looking for appreciation for their efforts and having their hard work acknowledged is often enough to boost office morale.
However, there are times when providing staff members with physical rewards can be the most effective means to encourage performance. In these instances, rewards should be personalized to the person or team. Giving something that is useful or valued by the individual will increase his or her personal satisfaction. To save time and money by personalizing rewards for company-wide programs, businesses can offer a range of merchandise from which employees can select. Using a point system lets managers recognize strong performances and enables staff members to work towards new furniture, golf clubs, computers, handbags or more. This ensures that everyone gets something they want and keeps costs down. The items don't have to be purchased until employees have earned a sufficient number of points.