15 Aug BENEFITS OF REWARD AND RECOGNITION
Employee rewards and recognition system is the cornerstone for the success of an organization. Over a period of years, time-to-time acknowledging the efforts of employees at work has increasingly played a crucial role in shaping the success of a company. An effective Reward & Recognition system goes a long way in staying true to the company’s long and short-term goals, visions and values.
People work for money but go the extra mile for Recognition, Praise and Rewards Dale Carnegie, American writer and lecturer
A leading research firm, Future Market Insights, have highlighted that the global social employee recognition systems market is projected to witness a spectacular CAGR of 15.7% from 2018 to 2028 and the market worth today is $46 billion. However, majority of these recognition programs hold prominence only when an employee has spent considerable number of years slogging in the company. Today, this blog focuses on the reasons why effective rewards and recognition system at workplace plays a crucial role not only for the success of an employee, but for the company at large as well. Take a look:
- Better Workplace Productivity
The more satisfied employees are, the more is their productivity at work. Well rewarded and appreciated employees are more inclined towards realizing the company’s goals and visions and are more driven towards delivering great results. A report carried out by a company on Rewards and Recognition system has stated that every $1 paid to employees as incentives leads to a $2 net profit to their company.
- Employee Retention
Satisfied employees are more inclined towards a longer association with the company as they foresee plenty of growth opportunities for themselves. Companies also realize that frequently hiring and training new employees attracts a great deal of time and cost implications. And so, effective retention strategies are a must to encourage employees to stay longer and work laboriously towards achieving company’s goals.
- Well-knit culture at work
Happy and satisfied employees are more likely to foster an inclusive environment at workplace. It is important for employees to feel that their efforts and hard work is valued and detrimental towards the success of the company. This, in turn, results in harboring the values of team spirit, a sense of responsibility and dedication towards their work.
- Increased level of Job Satisfaction
It is important for employees to adopt a positive outlook towards the company and that does not happen overnight. It is the responsibility of the company to express respect and acknowledgement of the employees at work that can motivate them to deliver quality work on time. This positive environment is contagious and results in optimum job satisfaction of employees.
- Increased employees’ loyalty
Well-planned reward and recognition system results in loyal employees as they know their efforts are appreciated and will continue to remain so. They are well aware that their hard work is adding significant contribution in shaping the success of the company that result in better and emotional connection of employees with their managers.
- Strengthens Brand Value of the company
When employees are happy in the closed office space, they are likely to engage in positive word of mouth advertising of your brand with the outside world including your clients and business partners. Thus, happy employees help a great deal in strengthening brand value of the company as they become good assets for your company. It also results in better external business relationships with your external stakeholders.
- Motivated Employees
A lot of recruiters hold an opinion that employees work in the company only for their monthly salary. However, the reality is that recognition, praise and rewards plays a great role in encouraging employees in going an extra mile each day at work. Small gestures like staying back late when required, arrive early at work and utilizing free hours working for the betterment of the company come a long way in making a big difference to the growth and profitability of the company.
- Fosters Team Spirit
A happy and unified workplace culture serves as a breeding ground for teamwork to prosper and dwell within the company. Motivated employees are more likely to work as a team and perform tasks in a more diligent manner. Companies are also expected to create a platform where employees are encouraged to appreciate team efforts and reward peer-to-peer recommendations in order to empower each other.