The importance of reward systems in the workplace

Many employees are motivated by two goals: earning a paycheck and doing work that makes them proud. The offer of an additional reward gives an employee that extra motivation to go above and beyond.

According to Microsoft’s Business website, a policy that offers incentives in exchange for achievement can motivate all employees to prove their worth. When worker productivity goes up, the bottom line often increases far in excess of the monetary rewards distributed.

Employees are motivated by a workplace atmosphere of mutual respect. When the team is united, the lines of communication are open, and employees are likely to share good ideas and put forth additional effort in the interest of the company’s success.

An employee who has been rewarded is often more motivated to remain with the company. It can cost a business quite a bit to deal with the loss of old employees and the training of new ones. Rewards, given to employees who are considering leaving the company, may increase employees’ probability of retention and decrease the company’s long-term training costs.

A good manager can encourage an employee to work harder and better from time to time, but a reward can go a long way toward building employee self-motivation. According to Carter McNamara, writing for the Free Management Library, the most effective rewards are tailored to an employee’s needs. An employee with children, for example, may be highly motivated to achieve more in the workplace if offering him additional time off to spend with his family. Additionaly, some companies select an employee as “Employee of the Week.” This technique praises the winning employee, while positively encouraging other employees to keep trying to do well.

By using positive reinforcement to motivate employees, a manager may build a good relationship with his employee that fosters a sense of trust. In a good manager-subordinate relationship, employees may feel respected and comfortable in their working environment. Providing rewards, both tangible and in the form of praise, can make employees happier. Satisfied employees often perform better at work.

References:

http://smallbusiness.chron.com/role-reward-employee-motivation-18814.html; The Role of a Reward in Employee Motivation; Ethan Pendleton

http://smallbusiness.chron.com/employee-motivation-reward-systems-15978.html; Employee Motivation & Reward Systems; Amelia Jenkins