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The benefits of employee rewards programs

By September 14, 2016September 29th, 2016Tips
employee rewards programs

When hard work goes invalidated, why would anyone feel inclined to repeat the positive behaviors they exemplified to deliver those results again? This is a question workers in every industry face. When your employees feel they have gone above and beyond their normal tasks to benefit the team without so much as a “thank you” it can lead to workers feeling unfulfilled and resentful. That can lead to a demotivated staff or worse, the hard working employees you rely on leaving for better opportunities. This hurts your company’s reputation as a place to work, can lead to staggering labor costs as you replace valued staff members, and one employee exodus may lead to their colleagues looking for better opportunities as well. With certain employees, it could cost you revenue if customers or clients loyal to that employee follow them out the door to their next opportunity.

On the flip side, the workplace that provides quality feedback, continued training, and employee rewards programs are much more likely to keep gifted workers and create an environment that makes it easy to recruit new talent. While a simple gesture of appreciation may seem insignificant, it can build an inspiring work environment for your team members. Consider these benefits to implementing employee recognition programs.

Retain Quality Employees

ERA Media reports the cost of replacing one employee can be up to two times the person’s salary. In total, $11 billion is lost annually due to employee turnover, according to Bloomberg BNA. When you consider the cost of recruiting, training, and the loss of business along the way, implementing an employee rewards plan can provide huge savings while bettering your business’ work environment and productivity. When team members feel they are a part of a quality team and are recognized for their contribution, they are more likely to stay with the company.

Recruit Strong Talent

Your reputation as a company that cares about its employees will precede you when it’s time to find new talent. Remember, employees talk about their workplace experiences not just among friends and family, but publicly as well. When employees spend their free time on social media, for example, be the company they talk highly about and build your reputation. Creating a positive atmosphere for workers through employee rewards software or other employee rewards ideas makes your company a desirable place to work when you’re recruiting and competing with others for strong talent.

Think about Google. Consistently ranked as one of Fortune’s top companies to work for, the search engine giant clearly values its employees and is flooded with strong applicant for each job opening. In fact, Fortune reports that Google has had more than 2.7 million applicants for job positions within the company. This leads us to believe that when you provide an enjoyable, rewarding work environment, your pool of talent for future jobs is quite strong.

Increased Engagement

If you’ve ever worked in an office where everyone goes directly to their desk, speaks minimally and holds their breath as the boss walks by hoping she doesn’t stop at their desk, you’ll totally understand this next point. When workers are positively engaged with management, business is better. Gallup reports engagement plummets to 2% among teams with managers who ignore their employees compared to 61% for teams led by managers who focus on strengths.

When you take the time to thank your employees, include them in employee rewards ideas, and make them feel valued, they will engage more with one another and management. That engagement must start at the top. Employees who are supervised by highly communicative managers are 59% more likely to be engaged in the workplace, according to Gallup.

Employee Rewards Program Platform

While you may think a thank you badge, employee reward points, or other team recognition efforts can’t possibly make that big of a difference, employees are telling us otherwise. Workers want to be involved, they want to feel they’re contributing and they want to know that contribution is appreciated.

Executing something as simple as an employee recognition program will not only help you keep strong talent, but will also enable you to work toward recruiting other talented workers, create a more engaging workplace and better your bottom line by lowering labor costs.
Get in touch with us today for a free demonstration of our employee rewards software.