"Every company needs a strategic reward system for employees that addresses these four areas: compensation, benefits, recognition and appreciation" - Entrepreneur Magazine.
In today's corporate reward systems however, we notice that one or more of these elements are missing, and when reward elements *are* addressed they are not aligned with the organisations strategic goals.
Wellineux places strong emphasis on developing the link between an organisation’s wellbeing & incentives strategy and how it can support the business in achieving its strategic goals.
Many research studies across the years report that feeling appreciated is the key driver of employee engagement within the workplace. And yes, while these feelings start with compensation, many a great workplace will tell you that there is much more to motivation than money.
It is companies that can clearly grasp this fact, that see a world of difference when it comes to an organisations bottom line, achieving strategic goals and attracting and retaining exceptional talent.
Rewards however should go beyond the 'nice perks' and translate into things that are truly fundamental to happy and well employees: a great work environment. The creation and investment in a great organisational culture, one that not only recognises good work and words of encouragement, but also provides a platform where employees can equally be heard and accepted, able to take ownership of their work and grow in their career, is an incredible motivator and a powerful way to show employee appreciation.
The cost benefit analysis of employee recognition
According to the Harvard Business Review, for every $1 spent on programs that support a happy and well workplace, organisations can expect to see a positive return of $2.30.
Gallup Organisation also conducted a 2003 study of 10,000 businesses across 30 industries and found the cost of a recognition system to be small when compared with the large benefits received when implemented effectively. Let's break it down:
The benefits of an employee recognition program:
1. Increased productivity. The Gallup Study found that the act of recognising a desired behaviour increases the repetition of that behaviour, and therefor productivity, thus re-inforcing the organisations ability to achieve its strategic goals.
2. Greater employee satisfaction. Here it was found that employees had a greater sense of enjoyment at work when a recognition system was implemented. This translated to a sense of 'more time spent focussing on the job at hand rather than procrastinating or complaining.
3. Higher loyalty scores from employees. A finding that translates to increased employee retention and lower employee turnover.
4. Decreased 'negative effects', such as absenteeism, presenteeism, stress, interpersonal conflict etc - all known to dramatically impact an organisations ability to meet its strategic goals.
The costs associated with an employees recognition program:
1. Time associated with designing and implelementing the program
2. Time taken to give the recognition, or the time and cost of guiding people on how to give effective recognition
3. The dollar cost of the recognition items purchased
4. The time and costs associated with implementing a new process.
What does and employee recognition program look like in your workplace? We would love to know in the comments below. If you need assistance taking your Employee Recognition & Rewards program to the next level, schedule your complimentary 1 hour Workplace Wellbeing Strategy Session with Wellineux founder Amanda McMillan to get started.