Rewarding employees for a job well-done goes a long way in providing incentive to continue giving their best in the months and years to come. In today’s economy, however, it’s not always possible to grant a raise or merit increase as a means of rewarding stellar performance. Cash awards tend to lose their cache because they get intermingled with an employee’s pay and end up going to pay for such mundane things as the mortgage or groceries. The majority of employees end up forgetting what they used the money for. Cash incentives can also get confused with compensation and become expected, creating a less effective reward system.
Yet companies still must provide some sort of reward or risk losing their best and brightest, particularly as the economy continues to improve. Fortunately, there are many ways to recognize great performance that don’t break the bank. Some of them may actually prove even more effective than monetary rewards. In fact, studies have shown that non-cash rewards are two to three times more effective than cash rewards.
If your company is doing exceptionally well, big-ticket rewards like flat screen TVs, gas grills, tickets to a concert or sporting event, and luxury getaways can be highly effective. Even a day at the spa or the local water park can make an employee feel like they are truly appreciated.
The effectiveness of non-cash incentives is rooted in human nature. People tend to remember tangible items better than cash. In their minds, they tie specific rewards to specific accomplishments, thus bolstering the incentivizing effect of the reward.
While luxury rewards are certainly more desirable than everyday items, oftentimes it’s all about the old adage, “It’s the thought that counts.” Imagine how special an employee will feel if they arrive at work to find their workspace filled with a surprise balloon bouquet. Even something as simple as T-shirts or mugs bearing the company logo may be enough to do the trick.
The benefits of non-cash rewards are many. They are a lot of fun and can be individualized based on specific employee preferences. They also cost less than cash incentives and can be continuously reinvented based on the workforce. Whatever route you decide to take, make sure to draw a clear line of sight between the desired performance and the reward. Also, be sure to reward the employee as soon as possible once the accomplishment has taken place. This will help them to recognize how their performance results in tangible rewards – and will lead to more such behavior in the future.
Need help finding the kinds of employees who will drive such behavior in your workforce? Contact Daley and Associates. We offer superior recruiting and placement results, specializing in auditing and financial placement.
The post Supplying Rewards: Manager Must-Do | Financial Management Boston appeared first on Daley and Associates.