HR MANAGEMENT - Reward Programs in the Workplace

Reward Programs in the Workplace

by Jennn Fusion, Demand Media

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.