In business, it is important that those who are performing well or above standards receive adequate rewards for their work. This encourages them to continue to perform at their current level and strive to achieve more both on a personal and business level.
Every organisation should have some sort of rewards structure in place that covers recognition, appreciation, benefits and compensation. In many instances, the recognition and appreciation elements can be left out which leaves employees unsure of how well they are performing on a regular basis. Constant feedback for employees allows them to gauge what they are doing well and the areas they need to improve which is not only good for them but also for the business. This is why a firm and consistent rewards structure must be in place.
It is important that an organisation clearly outlines the types of behaviours that are going to be rewarded as well. This will most likely align with the financial and customer based goals for the company but may also include factors such as innovation and communication. Rewarding all forms of business behaviour is important to foster the desired organisational culture.
Recognition and appreciation is one of the most powerful forms of reward and it is highly beneficial for both parties. Notably, appreciation and recognition is relatively cost free for the organisation as it is simply taking a small amount of time out to congratulate an employee or team on the work they are doing. This boosts confidence and through repeated efforts will guarantee a workplace environment that strives to achieve more and more.
Compensation is one of the more common forms of employee reward as it is relatively effortless for the business. Attaching specific organisational goals and behaviours to a reward is simple through compensation incentives that motivate employees and teams to push the boundaries of success with a monetary reward.
The fourth area for reward is through benefits. These are often a great way to build and improve morale and team work within a given division or team. Activities for the whole team or for the individual make working more fun and allow them to relax and enjoy themselves whilst still within a semi-professional environment. These benefits are also a great way to attract employees as they are often more visible to competitors than the other rewards types. Attracting and maintaining quality employees improves business operations through reduced need for training and a higher quality of personnel.