Employee Rewards
The performance of an organization's employees is crucial to its long-term success in putting its business strategy into action and staying ahead of its competitors (Luthans, 2000). Employers usually put a lot of emphasis on pay and bonuses as ways to encourage workers to be productive (Imran, Ahmad, Nisar, & Ahmad, 2014).
But non-financial benefits like praise and recognition are often overlooked in this context (Nyakundi, Karanja, Charles, & Bisobori, 2012). Even though financial incentives have been shown to positively encourage performance-enhancing behaviors and to some extent satisfy employees, basic research has shown that recognition is important for keeping employees motivated, valued, and committed (Brun & Dugas, 2008).
This is especially true of workers who have shown how much they care about their jobs (Harrison, 2005). Employee recognition has been shown to have a strong positive relationship with employee performance and to be an effective way to motivate employees to work harder to help the organization reach its goals and objectives (Zani, Rahim, Junos, Samonol, Ahmad, & Merican, 2011). Even though employee performance and employee recognition do not mean the same thing, this is still the case (Freedman, 1978).
It is said that recognition is the timely, informal, and/or official acknowledgment of an employee's behavior, effort, or business result that advances the organization's goals and values and goes above and beyond what is considered "normal" (Imran, Ahmad, Nisar, & Ahmad, 2014). This definition of recognition can happen in a formal or informal setting, and acknowledgment is a positive reaction and evaluation of a person's work. This evaluation (Nyakundi, Karanja, Charles, & Bisobori, 2012).
This includes, but isn't limited to, a person's work performance, how hard they work on their own, and how much they take part. Employee recognition programs are meant to do a lot of things, like give workers a sense of ownership and belonging, boost morale and loyalty, and make it more likely that employees will stay with the company (Luthans, 2000). To reach these goals, workers need to know and understand that their work is valued and respected
It has been found that recognizing employees' hard work is a good way to motivate them. This, in turn, can make both the individual workers and the company as a whole happier (Brun & Dugas, 2008). A says that a healthy working environment is created when employees are properly recognized, which makes them work hard and do a good job. In turn, this makes for a healthy place to work. Employees who are motivated to do their best work are a company's best asset because they help the company reach its goals, carry out its business strategy well, and do well overall (Imran, Ahmad, Nisar, & Ahmad, 2014).
When employees don't feel motivated to do their best work, they are less likely to take the lead, come up with new ways to solve problems, and put all of their attention and effort into the task at hand (Harrison, 2005). It has been shown that non-monetary rewards like recognition are good for both the happiness of employees at work and the success of the company (Zani, Rahim, Junos, Samonol, Ahmad, & Merican, 2011). When employees are happy with their jobs and with the organization as a whole, they care more about both and do better work. When workers are happy with their jobs and the company as a whole, the company as a whole benefit.
Good Post yohan, It is a common belief that an employee's motivation greatly influences how productive and effective they are. Employee performance must be at the peak in order for organizations to fulfill their full potential. There is no disagreement on the fact that motivated employees perform their jobs better. Personnel are more motivated to perform, especially in developing nations like Pakistan, when they receive praise from management (Tehseen and Hadi, 2015).
ReplyDeleteAgreed. Armstrong and Stephens (2006) define total reward as the mix of monetary and non-monetary employee advantages (Armstrong and Stephens, 2006, p. 7). Since 2000, the outmoded pay-reward system has reportedly been replaced by a complete compensation plan. Generation Y, born between 1978 and 1988, has a fresh mindset centered on their own needs and wants (Bowen, 2000).
DeleteYohan, It's a good informative post. There is more information in this regard in "A handbook of employee reward management and practice" (Michael Armstrong, 2nd ed.). In the same book, under "Total Rewards," Section 3:
ReplyDeleteAs defined by Manus and Graham (1), total reward ‘includes all types of rewards
– indirect as well as direct, and intrinsic as well as extrinsic’. All aspects of reward,
namely base pay, contingent pay, employee benefits and non-financial rewards, which
include intrinsic rewards from the work itself, are linked together and treated as an
integrated and coherent whole. Total reward combines the impact of the two major
categories of reward
1) Transactional rewards – tangible
rewards arising from transactions between the employer and employees concerning
pay and benefits
2) relational rewards – intangible rewards concerned with learning
and development and the work experience.
Agreed. Also, Financial rewards are appropriate for a Long Service Award, a birthday, or the end of the year. It's important to celebrate these things in a way that stands out and encourages coworkers to participate to build culture and improve social wellbeing. Financial rewards show the recipient that their efforts are worthwhile (Imran, Ahmad, Nisar, & Ahmad, 2014)
DeleteOnyango and Wanyoike, (2014) explains that; financial and non – financial rewards both are necessary to fully satisfy an employee. Recognition and appraisal is a key esteem need that employees value as they appreciate the acknowledgement of their efforts.
ReplyDeleteThankyou Charitha for commenting. Furthermore, delivering monetary awards for hard work helps your employees' financial welfare by allowing them to save money. A points-based reward plan allows employees to buy items or experiences with their points, giving them flexibility and choice. This system allows the recipient to choose something useful or personal, such as a digital voucher to treat themselves or help with everyday expenses. Meaningful rewards make your company's recognition culture more inclusive. If your employees know that organizational success equals financial rewards, they'll be more likely to work efficiently and produce quality work. (Freedman, 1978)
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