A Definitive Guide to Rewarding Employees: The Proven Benefits of Employee Recognition and Rewards Programs

According to recent research by Gallup, the employee engagement rate dropped to 31% in 2020. This was an all-time low and leaders and remote workers were the most affected by the changes.

When it comes to turnover rates, the truth is that employees don't leave a company. They leave bad company cultures, bad managers, and bad salaries. Feeling unappreciated for their time and effort can make employees not give their best. This leads to low productivity and engagement.

Keep reading to discover the most effective ways of rewarding employees to improve productivity.

Improve Productivity and Engagement Levels in the Workplace

Employee engagement or disengagement is a real problem in many companies, no matter the size or industry. It happens when employees don't feel appreciated for their work or feel taken advantage of. It can also happen if they don't like their job or don't feel like they can grow in the company.

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Low employee engagement can affect productivity and performance. This leads to many other internal company issues. Luckily, improving employee engagement is easy if you ask employees for feedback. Once you have the results, you'll know what steps to take and reward programs to create.

For instance, you can create personalized career plans for each employee. Then, offer paid mental health days, and invest in health and wellness programs. Recognition from bosses or managers is another important way to keep employees engaged and productive.

Create a Positive, Encouraging Company Culture

A healthy, encouraging, and positive work environment creates happy and productive employees. Whether you're a small business owner or a big corporation, company culture is a key motivator for employees to give their best.

Negative company culture can lead to low engagement, high turnover rates, and making more mistakes. The solution is asking for employee feedback so you can create a new company culture.

Ask for suggestions so you can make the workplace better for your employees. This will also help new hires fit in and adapt better to their new roles.

Ask Your Employees for Feedback

When creating rewards and recognition programs, make sure to ask your employees for feedback first. This includes all levels and departments, from entry-level workers to the highest managers. Create an anonymous poll or a survey so you can get honest answers.

Ask employees what they like or don't like about their job or their managers. Ask them to write suggestions about employee rewards and ways to feel appreciated. Then analyze the results to see if there's a recurring answer or a topic that needs improvement.

Don't forget to ask the remote workers for feedback as well. Their questions might be different, but their well-being matters too. Try to find ways to make them feel included and important. Create separate groups or channels to communicate with them. Have separate company culture guidelines to adapt to their needs.

Show Appreciation to Remote Workers

With so many companies working remotely, employee engagement levels are lower than ever. People are having a hard time focusing and engaging. Communication between teams and managers is even harder, so you need to find ways to motivate everyone equally.

If you have an in-house team as well as a remote team, show the remote workers an equal level of appreciation. Praise them publicly on social media, invite them to in-house company events, or send them personalized gifts.

Another great way to show appreciation to remote workers is to offer them the perks and benefits of the in-house staff. For example, if you have a Friday happy hour after work, include the remote team via Zoom or similar apps. Offer them the same health and wellness packages, healthy snack deliveries, and pay for childcare if needed.

Retain Talent and Reduce Turnover

Each company, no matter how big or small, has a handful of top talent that needs special attention and recognition. If you don't appreciate your top talent, they won't hesitate to leave. Most top talent employees care more about career growth and feeling appreciated than they do for getting a raise.

At the same time, high employee turnover can be a huge expense for a company. It takes a lot of time, effort, and money to advertise job positions and interview candidates. Then, there's training and mentoring new hires for a smooth onboarding process.

If employees don't stay at your company for more than a year, you need to make some changes within the company. For example, rethink the company culture or offer better career growth.

You can reduce your company's turnover rates by creating recognition programs. Examples include monthly rewards, team-building trips, birthday day off, or public recognition. Don't forget to include monthly bonuses, incentives for big projects, end-of-year bonuses, extra vacation days, and opportunities for career growth.

Improve Manager-Employee Relationships

In large companies, there are many levels of management in different departments. Clear communication between team members, team leaders, and managers is key to a job well done. However, managers often can't connect with their employees which leads to low productivity and mistakes.

To improve employee engagement, HR managers should work on manager-employee relationships. Managers need to get to know their employees better and use their strengths. Employees need to express their needs to managers more clearly so they can take steps to improve the work environment.

For example, you can organize fun team-building activities, pay for manager training, bring an expert to help or have a meeting where both sides can express their needs.

Start Rewarding Employees With These Employee Recognition and Rewards Programs

Whether you're a small business or a big corporation, rewarding employees should be an essential part of your company culture. Happy employees working in a healthy workplace are more productive and engaged. With the right employee recognition and rewards programs, you'll see growth and improved engagement in no time.

Want to boost office productivity even more? Discover the reasons why employee productivity is lacking and what you can do about it.

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