How to Reward Employees – Raises Aside
There’s no question that the building blocks of a company’s success is its most valuable asset: employees. As such, it stands to reason that rewarding them should be considered a top priority. But how, when, and why should employees be rewarded for their contributions if it’s not an option to pass along raises or bonuses?
Sometimes seemingly intangible benefits can have great meaning to those who go the extra mile. Here are five ways you can show appreciation for employees when a raise is not possible:
Taking a moment to acknowledge employees’ good actions and behaviours can not only help nurture repetition, but also act as a powerful motivator. In fact, a popular study from the Journal of Personality & Social Psychology reports that a simple expression of thanks by someone in authority led people to be 50% more productive. A quick shout out during a meeting or a private note or email is an easy way to express gratitude.
- Time off
For most employees, the only thing better than getting paid to work is those few occasions throughout the year when they get paid NOT to, making additional (paid) time off a wonderful way to reward team members. Even a half-day can make a big difference to an employee who’s known for going above and beyond the call of duty.
- Professional development opportunities
Whether you choose to support employee development through courses or training programs, nurturing their skills demonstrates a level of investment in their career trajectory — and has the added bonus of positively influencing their current output.
A pizza party, potluck lunch, or similar can be a simple and effective way of celebrating individual and team accomplishments. It also provides an opportunity for team members to bond, providing a win-win advantage.
- Personalized Perks
All rewards are not created equal. What would be appreciated by one employee may not be by another. Finding out the many ways individual employees feel valued can amplify the impact of your reward system and may entail actions as simple as storing a favourite snack in the kitchen or paying for an outing to a local attraction.
Now that you’re familiar with how to reward employees, it’s time to consider when to reward them. Ask yourself:
- Does the employee’s efforts contribute to the overarching success of the company and its revenue growth, cost savings, and/or completion of critical projects?
- Does the employee work well with others and contribute to a positive team dynamic? Do they display a willingness to help others and demonstrate conflict resolution?
- Are leadership qualities, such as a willingness to take on new challenges, motivate others, and problem solve, present in the employee?
- Are professional development opportunities independently pursued, and does the employee seem enthusiastic about increased responsibility?
If you can answer yes to all or any combination of these questions, your employee(s) might be due for a bit of recognition. It’s important to note that rewarding employees offers a host of benefits to employers too. After all:
- 63% of employees who feel recognized are unlikely to look for a new job.
- 53% of employees say they would stay longer in a company if they feel appreciated.
- A well-designed recognition program can help drive an 11.1% increase in average employee performance.
- Employee productivity, performance, and engagement are 14% higher in organizations with recognition programs than in those without them.
Overall, rewarding employees can be a powerful tool for employers to motivate and retain their workforce, improve performance and productivity, and create a positive and supportive work environment. If you need to “up the ante” on employee engagement — including how to reward your employees more effectively – you can benefit from partnering with our team of experts. Contact us to turn possibilities into opportunities that will strengthen your business.
This blog was written by Ilana Stern, Senior Director, HR Services & Training. For more information about employee engagement, email [email protected] or call 1.888.709.1236.