The Meaning and purpose of Employee rewards program
An employee rewards program is a strategy that motivates and encourages employees to give their best at work. It provides a platform for an employee to improve their performance at the workplace, thereby increasing the employer’s profit.
An effective employee rewards program goes a long way in improving workplace productivity and quality of work among employees. Not all employees are motivated by monetary benefits alone; some prefer non-monetary benefits like trophies, certificates and recognition programs, etc.
In such cases, it is important to incorporate these ‘non-cash aspects into an employee rewards program. If you wish to learn more about employee rewards programs and Customer loyalty programs visit our site or contact us!
The general aim of any employee rewards system essentially focuses on the following –
- To help identify potential candidates as well as motivate them further into performing better than before.
- Provide a platform for enhanced employee-employer relations.
- Motivating employees to achieve organizational goals and targets.
An effective employee rewards program forms a key component in providing employees with work satisfaction & motivation, thereby promoting healthy organizational culture. Moreover, it helps develop a good relationship between the employer and his employees on both individual & group levels.
Enhancement of corporate image
Employee rewards programs also help in enhancing the corporate image. For instance, if a company is known to provide its employees with good benefits, it will go a long way in attracting more and more prospective candidates for employment.
In addition to this, an employee rewards program presents the management of an organization as a forward-looking & progressive one.
Employee rewards based on monetary benefits helps in –
1) Employee motivation:
Monetary Rewards are very effective only when combined with intrinsic motivation. Intrinsic Motivation is that part of the reward that comes from within, such as the satisfaction one derives from doing a good job and the sense of accomplishment one feels when given responsibility.
2) Greater productivity:
An employee recognition programs helps the organization maximize returns by optimizing its human capital resources, i.e., its employees (More than half of total IT expenses today are personnel-related). One major reason behind this is that effective rewards programs go a long way in improving employee productivity, thereby increasing employers’ profit by reducing operating costs.
Reward systems help companies keep down costs in several ways. Low stock-keeping costs result from intrinsic motivation as employees do not have to be bribed or rewarded with expensive incentives to sell the company’s products.