Ever since we are little kids, our innocent minds are programmed to believe that ‘good children’ get gifts by Santa Claus. The fear of missing out on gifts worked better than any harsh words. Parents frequently use this to instill good behaviour patterns in children.
In technical terms, this is known as positive reinforcement. And it really does work wonders. In work places, positive reinforcement is done in the form of rewards and incentives, that is, monetary benefits paid to employees in recognition of their outstanding performance.
The importance of rewarding your star performers cannot be overstated enough. It boosts employee morale, attracts fresh talent and minimizes favouritism and absenteeism. Happy employees will create happy customers and deliver outstanding customer experiences. In the cut-throat business world that we presently live in, employers need to realize that for every skilled employee in the company, there are at least 5 similar companies who want him. Unless an employee feels that his skills are being acknowledged, appreciated and rewarded, he would have no qualms about changing his workplace.
Fortunately, such crisis can be averted by adopting a good reward system. The first step for establishing a reward system is analyzing the company finances. Realize that an incentive based system is bound to increase your profits as employees will be motivated to put in extra work to be eligible for rewards.
Ascertain a budget for the rewards and establish what they are going to be. Rewards can be given in various forms, namely – paid vacations, promotions, bonuses on festivals, etc. If you wish to keep a low budget for the reward system, consider making plans like an ‘employee of the month’ poster or gift coupons. Even something as small as appreciation from a supervisor can work as a great morale booster.
Define standards for performance measurement. How much work does an employee have to perform to be eligible for each reward? Communicate the system and the performance measurements to the employees. Appoint managers to measure performance and create reports. Make sure the reward system is continually applied and updated in the coming months.
Rewards help to create a more competitive work environment. Once you have it in place, you will be able to watch your star performers work better than ever. Their accomplishments will also motivate other employees to be more productive.
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