Reward Programs in the Workplace
by Jennn Fusion, Demand Media
Whether it's cash or time off, recognize your employees and boost productivity
Whether it's cash or time off, recognize your employees and boost productivity
Reward programs in the workplace serve
a number of functions. First, they retain employees who stay with the company
because they are committed, passionate and driven, which is a direct result of
feeling appreciated by their employers. Secondly, reward programs boost
employee productivity, idea generation and profits. Study after study confirms
that workers are most motivated when reward systems are in place. The good news
is that a reward program need not involve cash.
Cold Hard Cash
Cash rewards are the most primitive way
for an employer to say "Thank you." Yet, for industries like sales,
money is the biggest motivator. A 2009 Wall Street Journal article highlighted
some ways to implement employee reward programs. For instance, Andrew Schuman
of Hammond's Candies gives out $50 bonuses to assembly line workers with the
best ideas to cut manufacturing costs. Mike Hall, CEO of Borrego Solar Systems,
offers two quarterly cash prizes of $500 for the best business innovation and
the best knowledge briefing. Jared Heyman, founder of Infosurv research firm,
gives out quarterly $150 restaurant giftcards and $100 cash rewards to
employees with the best business ideas. "The program has paid for itself a
thousand times over," Heyman said. "In terms of cost savings, revenue
enhancement and efficiencies, it's certainly in the six-figure range."
Recognition
A study conducted by WorldatWork found
that non-cash rewards achieved three times the return-on-investment than
cash-based incentives. Recognition is one of the top-cited employee needs and
there are many ways to do it. According to HR World, AdvancedMD CEO Jim Pack
handwrites thank-you notes to employees on $2 bills. Cisco System's CEO John
Chambers hosts monthly birthday breakfasts for all employees. Sharlyn Lauby of
ITM Group gives standing ovations of deserving employees at meetings. Professor
Linda M. Lopeke of SmartStartCoach.com rewards top employees with flower
arrangements from her garden or prime parking next to the CEO. Paylocity
founder Steve Sarowitz recognizes employees with $75 gas cards and employee
game room time. Sarah Kugelman, founder of the skyn ICELAND company, gives
employees who work exceptionally long hours $500 gym membership and yoga class
bonuses.
Flexible Hours And Time Off
One of the increasingly popular
employee reward programs is one that offers flexible hours and time off as
incentives, says TalentManagementTech.com. HR World agrees, citing some of the
interesting applications across American companies. For example, Richard
Martin, president of Alcera Consulting, allows diligent workers the ability to
adjust their schedules for doctor appointments and errands. Terri Levine from
The Coaching Institute says that "I-Time" is perfect because
employees "don't have to pretend to be sick." She adds, "They
can go to the beach, read a book, play with their kids ... it doesn't matter.”
Brian Margarita from TalentFuse Inc. rewards employees with telecommuting days
that provide better flexibility and more family time. Alicia Rockmore, Buttoned
Up Inc CEO, rewards staff members with flexible schedules where employees may
elect to telecommute or put in extra hours four days a week to leave early on
Fridays.
Advancement Opportunities
The hardest working employees
appreciate rewards that involve advancement opportunities. They want to work as
part of a special project team or be involved in key management decisions. They
have many ideas they'd like to be heard and they want to take ongoing training
courses that add to their skill sets. They may want to make new business
contacts or be chosen to represent the company at a seminar. Author Cindy
Ventrice says that introducing employees to senior management or key suppliers
can really make an employee's career, without costing you a thing.
Prizes & Fun
Prizes, events and fun are rewards that
boost employee morale by providing a work environment that is attractive and
engaging. Terri Levine, president of The Coaching Institute, created weekly
events, including baby photo contests or social mixers that drove productivity
up 58 percent to 72 percent. Dan Coen from Call Center Today consulting firm
says one client of his conducted monthly contests to win a new car, rather than
give $1 raises that year, which boosted productivity through the roof. BankAtlantic
VP Gregory Dalmotte passes out Monopoly money that can be saved up and traded
in for prizes. The Street Magazine mentions how Qualcomm's headquarters awards
employees with "Learn to programs" for scuba diving, surfing and team
building adventures. Michael Tope, founder of Creative Business Resources,
gives his employees paid time off to participate in volunteer work of their
choosing. He also lets employees participate in a holiday savings program that
sets aside a portion of their paychecks until Oct. 31st, with the company
matching the first $1,000 in savings.
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