How Do You Reward Your Employees?
What comes to your mind when you think of rewarding your employees? Compensation obviously tops the list, but don’t you think an employee reward strategy should be more than that? Otherwise, why should people desire to continue working in your organization? Which rewards do you think make an organization an attractive place to work at?
Most organizations provide compensation (fixed and variable) and other benefits like medical cover, pension schemes, and holidays. But then, organizations tend to replicate rewarding systems used in other organizations. And here lies the biggest blunder. It’s critical to realize that each organization is unique in its culture, objectives and goals. Hence, organizations should have distinctive reward systems for their employees.
Before framing a reward system, organizations should ask some questions such as:
- The behaviors it wants to reward: Are employees being compensated for efficiency or innovation? Or are they merely being awarded for face time?
- Alignment of the reward strategy with business objectives: Is there a separate incentive plan for top achievers? Or is it same across the board?
Even if you have got the compensation and incentive strategy right, your reward system could still be incomplete if you have ignored training and development, and the work environment.
Today’s workforce is looking for more than just a monthly paycheck. They want organizations to enhance their career opportunities, help to upgrade skills, and provide a working environment that is vibrant, energetic and dynamic. Training programs not only provide professional growth, but also serve organizations’ strategic needs. It can help in keeping employees motivated and engaged.
Lastly, don’t undermine the importance of recognition and appreciation. Expressing gratitude in any informal way like a small personal note or a pat on the shoulder can go a long way in retaining talent. My previous organization had an impressive system of recognizing best performing employees at the quarterly town-hall meetings.
Organizations should continuously review their reward system to ensure it addresses the critical issues. It can be a defining factor in not only retaining top talent, but also between success and failure of an organization.