Recognition delivers benefits beyond the cost
When you think of your payroll expense for your employees, do you first consider that amount of money primarily as “a necessary cost to the business”, or “as an investment in business success?”
We’ve heard both phrases used over the years, usually along the lines of a glass being either half full or half empty. It’s all about how you look at the same figures and how much you value the employee contribution that you are paying for, or whether you view the overhead as a necessary evil that should be cut wherever possible?
This isn’t a trick question. It’s a legitimate response to say that you value your employees, while at the same time you want to minimise the associated cost to the company. It’s all about being effective and efficient. If your response was “an investment” you are on the right track.
This is where a Positive Feedback or Recognition Program can add significant value. You should consider the benefits of a balanced program that provides the right rewards for the right employees, and for the right reasons. Have a care though, because if you miss any one of these three points, you’re wasting money.
Let’s take a closer look.
The Right Reward. What do you count as a reward for employees? Cash of course, and hopefully at varying levels. Incentives too. But how about a subsidised cafeteria, tuition reimbursement, gym membership, priority parking or perhaps in-house product or services? Ask yourself, what other programs, policies or initiatives are either provided or available to employees in your organisation that help make the working environment a more pleasant place to be for so many hours a week?
The list of possibilities is almost endless.
Ask yourself how many of these rewards being offered within your organisation bring a smile to your employees and encourage them to repeat or increase the efforts and behaviours that they have been rewarded for? Find out what those goodies are because those become a reward for working there.
Initiatives don’t have to be large or expensive offerings. They just need to be “something” that is meaningful to the employees. Cash may be king, but it will never be enough. And remember that cash does not have as strong a relationship with the feedback as a product, service or experience ad it has been proven that recognition is far more effective than reward.
Look Beyond Cash. Every organisation is different, with numerous characteristics, infrastructures, management bias, ingrained cultures and degrees of financial strength, so it’s hard to point at any one reward item and say, “do this.” But if you presume that cash is not always going to be available, or enough, try something else as well.
Benefits, Not just the core programs (medical, dental, life, disability, etc.) that almost every organisation provides these days, but perhaps there are other initiatives, whether funded by the company, the employee or a split, whose offering would be appreciated.
Work-Life: Do you expect your employees to maintain a “live to work” or a “work to live” mindset about their job? It matters.
Performance & Recognition. Everyone wants to be recognised for their efforts, be it in the form of a reward, public appreciation in front of co-workers or simply a handshake with a sincere “thanks.” Avoid giving recognition and some employee attitudes might shift to “why bother?” Paying someone well but then otherwise ignoring them presents a problem by itself. It is important to remember that appreciation should be sincere, timely and appropriate to have the greatest impact.
Development & Career Progression. No one wants their career to be years of treading water in the same position. Most staff want to be challenged and allowed the chance to work toward something greater. Give them an opportunity to advance themselves before they decide to go elsewhere for a better job. Let employees grow with you, versus with someone else. This is especially true for your high performers, who will always have options. If you don’t do this, it is likely that your high flyers will move on to your competition, leaving you with the expense of recruiting new staff.
The value of rewards is in the eye of the beholder – the employee. If I have an opportunity through employment with you to gain something that I value, then that “something” is a reward. Granted, my hot button may not be the same for everyone.
Don’t be like the manager who feels that a well-paid employee can be ignored or taken for granted. This mentality is from the industrial revolution. A well structured recognition (and reward) program does not have to cost the earth, and implemented correctly it will deliver significant benefits over the cost, through improved productivity, reduce absenteeism and staff turnover, improved customer experience, while making you an employer of choice.
It is therefore an important management function to ensure that their employees are appreciated, valued, and respected, and given positive feedback every day to ensure tomorrows performance is at least as good as todays.
At Brownie Points we are working with thought leading organisations around the world to tailor employee feedback and recognition programs that have a positive impact on the bottom line.
With our growing network of national and international alliance partners we are helping our clients deliver cost effective employee recognition programs to improve their business.
To learn how Brownie Points could make a difference to your business, call the team today on + 61 (3) 9909 7411 to discuss your plans, or for more information or to arrange a free demonstration email us at email@example.com