Not only are your employees the workhorses that make running your business possible, many of them also exhibit loyalty and dedication that you should not fail to appreciate. As the primary engines of your enterprise’s success, your employees deserve a comprehensive reward system that will afford them the recognition that they deserve.
There are many different ways of incentivizing your employees. Such incentives help keep your workforce engaged, which in turn, strengthens your organizational culture and drastically improves your bottom line in the long run. If you have not yet implemented a well-thought out reward system for your employees, this short guide can help you started.
Incentivize Good Performance
One time-tested method of rewarding employees is providing compensation for good performance. Your company can establish a variable pay reward system that will be contingent upon the employees’ ability to meet the goals you set for them. The goals themselves can be dependent on different metrics, be it the achievement of a certain level of productivity, being able to convert more leads to actual sales, improving the performance of a sluggish program, growing the profits of your online store, and so on.
Provide Non-Cash Rewards
It has been shown time and again that cash is not the only thing that can have a profound impact on employee engagement and motivation. Studies have shown that some 31% of best-in-class enterprises regard non-cash incentives to be an integral part of their sales performance management strategies. What’s more, great employee engagement also creates a positive impact on customer engagement. In fact, enterprises with higher employee engagement boast 38% higher customer satisfaction ratings.
What you should consider is establishing a well-considered and well-executed non-cash recognition program that incorporates strategies like peer-to-peer recognition, public recognition, rewards in kind, and experience-based incentives. To create a program that is properly tailored to your organization’s needs, consider using an employee incentive platform that will allow you to orchestrate all your strategies.
Invest in Your People’s Wellbeing
As an employer, you should also look into instituting a safety and wellness awards program. Not only is this another way of providing incentives to your employees, it’s also a way of showing your appreciation for them. Rewarding your employees for practicing healthy behaviors, maintaining a safe and accident-free working environment, and being able to recognize potential hazards in the workplace is also beneficial for your organization. Aside from keeping your workers engaged, employee health and wellness programs also have a direct positive impact on employee productivity, in addition to reducing costs associated with insurance payments, absenteeism, and accidents.
Think in the Long-Term
The most well-known benefits provided by employers to their workers include paid time-offs, paid sick leaves, and the usual insurance products such as medical, dental, and disability insurance. On top of these, however, you should also consider providing benefits that take into account your employees’ future. Providing retirement plans is a given, of course, but you should also look into the feasibility of giving long-term rewards in the form of equities or company shares. This is not only a kind of financial reward for your best and most dependable long-term employees, it’s also something that will elevate their sense of ownership and belongingness with the organization they work for.
Coming up with a strategic employee rewards system is key to keeping your people engaged, happy, and motivated. Making it part of your overall business strategy will help not only in retaining your best employees but also in improving your profitability over the long term.