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Impact of Rewards on Employee Engagement





Employee Engagement

Simply, the employee engagement can be described as a high level of employee involvement, commitment to the organization and job satisfaction. Since employee engagement is a key to the success of an organization, most employers exercise different tactics in motivation of the employees to boost their engagement at work.

Happy employees are much more likely to be productive members of the team who will look forward to stepping through the doors of an organization each morning. Implementing employee benefits is a one of the excellent way of improving engagement, as they are crucial to ensuring your employees are happy and focused in their work.


How else do benefits fit into employee engagement?

·       Benefits put people at the heart of what you do.

By implementing employee benefits, you’re putting people at the heart of your company. This shows your employees that, as an employer, you care about them and value their achievements and progression. After all, your company would be nowhere without its people.

Employees will understand that their employers are empathetic and are here for them through benefits such as an Employee Assistance Programs. Employees will feel motivated to do their best as they will be satisfied and comfortable in their role. As well as this, employees are more likely to support company goals, as they will feel a sense of belonging to their workplace’s team. This because valuing your employees through benefits will ensure employees feel connected and an important part of the organization they work for.

·       Benefits look after your employees’ well-being.

Employee well being is an integral part to their engagement in the workplace, as benefits such as Health Cash Plans and Hospital Treatment Insurance can help to alleviate stress and financial burden caused by ill health. This will ensure employees are less distracted and less likely to spend extended amounts of time off work.

Cycle to Work Schemes are another great way to look after your employees’ well     being, through enabling them to enjoy more physical exercise at a reduced cost all whilst saving on National Insurance. Regular exercise can supercharge productivity for those who may be less active, and through implementing these benefits, employees can come to work feeling refreshed, engaged, and ready to tackle the day ahead.

·       Benefits are an important investment.

It will come as no surprise that disengaged employees will be more likely to be absent from work. By investing in employee benefits, employers can boost employee engagement and in turn reduce the amount of lost time incurred by extended absence and sickness.

As well as reducing the cost of absence in the workplace, employee benefits are a great investment that can improve staff retention. This is far more cost-effective than increasing budget for recruitment, as benefits will help you ensure the best talent stays on your side. Employees who feel valued and important will be far less likely to go elsewhere, because who would want to leave such a caring workforce?

·       Improving lives.

Employee benefits tie into employee engagement by looking out for your people, ensuring their growth and encouraging progression within your company. By improving employee engagement, you improve lives, and encourage positive experiences within the workplace that reflect back to you as the employer, generating the perfect environment for success.



 

Many research articles have shown that employers who cares the employees with good recognition and career development programs scored significantly higher in terms of productivity, revenue, customer retention, and employee retention than those that didn’t. What all this shows is that if you carefully define who you are and what you want, if you select your people to be aligned with your core values, if you listen carefully to what they want from their jobs, if you provide them with the guidance they want, and if you give them the recognition and rewards they deserve, you can greatly reduce turnover, enhance engagement, and improve productivity and profits.

References

Scott, D., McMullen, T., Royal, M., Stark, M., (2010). The Impact of Rewards Programs on Employee Engagement. Available at: https://www.worldatwork.org/docs/research-and-surveys/survey-brief-the-impact-of-rewards-programs-on-employee-engagement.pdf.

Comments

  1. Dear Friend,
    How can Rewards improve the employee engagement?

    ReplyDelete
    Replies
    1. Malinda, I think recognizing and rewarding staff through other avenues is often a far more effective solution. A rewards system, personal thank you, or internal announcement on your intranet strikes a personal chord that makes employees feel valued. In turn, this will improve employee engagement and happiness.

      Delete
  2. In the current world which kind of reward employees expect..?

    ReplyDelete
    Replies
    1. Bonuses -
      There are many types of bonuses, ranging from small to large.
      Small bonuses, sometimes called spot bonuses because they’re given “on the spot,” are small monetary rewards given frequently by one colleague to another in recognition of a valuable contribution. Although small bonuses can be given by managers to their direct reports, they can also be given by other colleagues, and even from a direct report to a manager.
      Small bonuses provide several unique benefits. Like spot bonuses, staff recognition in the form of bonuses can be given in the very moment that a valuable contribution is made by an employee. Employee recognition given in the moment has the greatest potential for impact, because the action is rewarded almost immediately, when it’s top-of-mind.
      Because these bonuses are small by nature, everyone can give them out often, providing multiple positive instances of employee recognition without dramatically altering an employee's compensation.
      Their on-the-spot nature dictates that spot bonuses are given at an irregular cadence, in contrast to annual and quarterly bonuses.

      Written praise-
      Writing thank-you notes can not only show appreciation, but is tangible proof of an employee’s contributions. Written praise is a flexible method of recognition and notes of praise are almost universally appreciated, whether written or sent as electronic communication.

      Verbal praise-
      Verbal praise is perhaps the oldest, and longest-standing form of peer-to-peer recognition in the workplace. Verbal praise is given by colleagues, generally in an ad-hoc fashion, in recognition of a staff member's valuable contribution.

      Although nearly always informal in nature, verbal praise is occasionally solicited as part of a formal staff recognition program.

      Delete
  3. What are the modern methods of employee engagement?

    ReplyDelete
    Replies
    1. -Make work meaningful
      -Foster great management
      -Establish a flexible-humane inclusive workplace
      -Create ample opportunities for growth and establish vision
      -Purpose and transparency in leadership.

      Delete
  4. How can we link rewarding more effectively to the employee.

    ReplyDelete
    Replies
    1. • Involve all employees in the development, implementation and revision of
      rewards programs
      • Ensure that employees view the rewards as worth the effort
      • Make sure that employees understand how to earn the rewards
      • Set reasonable and transparent performance standards for rewards
      • Make sure employees view the reward system as fair
      • Always link rewards to performance
      • Recognize small and large accomplishments
      • Reward teamwork and cooperation
      • Provide rewards immediately after the employee achieves the desired
      behavior
      • Match the reward to the employee
      • Offer financial rewards, non-monetary rewards and recognition
      • Use long-term rewards programs
      • Change the rewards frequently

      Delete
  5. Dear Mahesh, Recognition also has an impact on employee engagement.What do you think about that?

    ReplyDelete
    Replies
    1. Yes Amila I agree with you. Workplace recognition motivates, provides a sense of accomplishment and makes employees feel valued for their work. Recognition not only boosts individual employee engagement, but it also has been found to increase productivity and loyalty to the company, leading to higher retention.

      Delete
  6. Why rewards are important to employee development ?

    ReplyDelete
    Replies
    1. Having a good reward system helps keep employees happy, loyal to the company, and eager to move up the ladder. Rewards, like public recognition and additional pay, motivate employees to work harder.

      Delete
  7. Do you think rewarding has a direct impact to the employee retention?

    ReplyDelete
    Replies
    1. Yes, after an employee is hired, rewards still play a major role in retention. If an employee feels that they are receiving a good rewards from a company, they are more likely to work harder. Most people are driven by the money and benefits they receive at a job.

      Delete
  8. Yes. In order for rewards to have the most impact on influencing employee performance, they must be directly linked to the desired behavior. When employees understand the connection between their reward and their performance, they will be motivated to perform optimally in the future.

    ReplyDelete
  9. Yes.Encourage rewards and recognition in the workplace. Meaningful rewards and recognition is one of the most cost-effective ways to reduce employee turnover, increase productivity, and encourage happiness at work

    ReplyDelete
  10. Hi Mahesh, what kind of things you will do for employee engagement?

    ReplyDelete
    Replies
    1. Encourage flexibility.
      -Volunteer as a team.
      -Always be authentic.
      -Promote taking breaks.
      -Asking for feedback.
      -Hold regular social gatherings.
      -Clarify goals.
      -Provide a nice environment.

      Delete
  11. How do you reward and recognize employees?

    ReplyDelete
    Replies
    1. Employees respond to appreciation expressed through recognition of their good work because it confirms their work is valued by others. When employees and their work are valued, their satisfaction and productivity rises, and they are motivated to maintain or improve their good work.

      Here are great ways to reward and recognize your employees:

      • Praise.
      • Awards.
      • Flexibility.
      • Visibility.
      • Responsibility.

      Delete
  12. Wonderful blog! Small businesses and established companies are attracting towards virtual workplace culture for their remote teams, to varying degrees of success while ensuring a work-life balance. A virtual team building company, help organizations to engage their remote employees in various employee engagement activities.

    ReplyDelete

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