Common Misconceptions about Employee Reward and Recognition Programs
Compared to a few decades ago, several organisations have transformed the way they recognise employees and their achievements. However, there are still many that do not want to move away from traditional methods. This reluctance to change the way they appreciate their employees come from misconceptions. Thankfully, it is now possible to clear those fallacies and ensure decision-makers invest time, effort, and resources to make their employee recognition programs more successful.
Here are the most common misconceptions that organisations have about employee reward and recognition programs:
Just Monetary Rewards Motivate Employees
Many decision-makers believe that employees long for hire salary and monetary benefits. So, if they increase salaries, it will motivate employees and encourage them to meet their goals and targets. However, this is not true. A study performed by Deloitte reveals that companies that have employee rewards and recognition programs enjoy 14% higher employee performance, productivity, and engagement compared to companies that do not have similar programs. So, if you have a high employee turnover even though your organisation is among the highest-paying companies, it is time to rethink your employee recognition program.
Employee Recognition Programs are Extremely Time-consuming
If your company does not have a proper employee recognition program, it will be time-consuming. Most companies have ad-hoc incentives that are manually handled. That makes the program ineffective as you will not be able to motivate your employees to increase their performance. It is necessary to have a structured program in place that treats all employees justly and rewards them as and when required. A structured and automated program is easy to handle and is more effective in incentivising and motivating employees.
Recognition is for Employees Who Do Not Get Bonuses
Many organisations believe that employee recognition programs are solely for employees who do not get bonuses and salary hikes as it allows them to stay motivated. However, if you are using this criterion to reward your employees, the entire purpose of the recognition program will get lost. It is prudent to remember that all employees need recognition and decision-makers should not pick and choose who gets it. Just like rewards are used in B2B loyalty program to drive success and can reduce client churn by 5% and can increase a company’s profitability by 20 to 125%, so also with employee recognition. Rewarding and recognising deserving employees can drive engagement and ensure your organisation cultivates a culture of appreciation and collaboration.
The Bottom Line
Employee recognition and reward programs are much more than doling out ah-hoc rewards or monetary prizes. These programs can transform your workplace and make it more productive and collaborative. You will be able to retain talented employees and also your organisation will find it easier to attract new talent. Remember non-cash recognition is more effective compared to pay hikes and cash bonuses. So, do not let misconception stop you from implementing an effective and fair reward and recognition program for your employees.
