In Blog, Employee Engagement, Employee Recognition

A recent Gallup poll revealed that a mere 13% of all employees are actually “engaged” or emotionally invested in their work. On the other hand, an alarming 63% of the workforce are “not engaged” and/or unmotivated and a staggering 24% are “actively disengaged.”

This means that a significant part of your workforce could be costing you more than they are making you.

You may be thinking to yourself, “How can that be? I interact with most of my team on a daily basis and they are all contributing.” In reality, if even a small portion of your employees are disengaged, it can have serious financial implications for your company.

FREE GUIDE: How to Set Up an Employee Rewards and Recognition Program

Sears, Roebuck & Co. did a study on this to determine how detrimental a “not engaged” or “actively disengaged” employee actually is on the organization as a whole. In their research they discovered that a whopping 10% of our annual GDP is put towards the costs of these “actively disengaged” workers in the form of workplace injury, sick days and absences, employee turnover and fraud.

Moreover, a dissatisfied employee is more likely to steal, lie or provide intentionally poor service simply out of spite, thus costing your organization more than we can quantify.

We all know there is no “I” in team and it takes a village to raise a child, so why is it that so few companies promote healthy workplaces with satisfied employees?

So why doesn’t every company offer rewards?

While, in theory, offering rewards seems like a no brainer, it’s easier said than done for most companies. Often, managers find it difficult to decide and agree on the metrics for tracking employee rewards and other specific program details.

Questions that must be answered may include:

  • What behavior(s) will/will not be rewarded?
  • How often will rewards be given?
  • How will the data be captured?
  • Who will be responsible for managing the program?

These questions, among many others, often keep well-intentioned teams running in circles until other priorities eventually take over and rewarding is forgotten.

The number one issue companies face with employee reward is getting the approval to move forward with a plan. A hierarchal company can take years to agree on a system and put it into motion.

Our experience, paired with our smart software platform, can help answer all those questions of how to implement and manage a rewards program. Better yet, it will automate the management of the program so no one has to worry about added responsibility.

Of course, we won’t be able to transform every employee into a high performance machine, but statistics show a 26% increase in employee commitment to the company as a result of recognition alone.

And, if you subscribe to Adam’s theory detailed in Linder’s “Understanding Employee Motivation,” you’ll understand that employees strive for equity between themselves, meaning your newly satisfied employees will encourage the less satisfied to step up their game.

Fundamentals of Employee Reward Management

The 2005 Handbook of Employee Reward Management and Practice by Michael Armstrong and Tina Stephens lists the fundamentals of reward management as follows:

  • Reward people for the value they create
  • Reward the right things to convey the right message about what is important in terms of outcomes and behaviors
  • Develop a performance culture
  • Motivate people and obtain their commitment and engagement
  • Help to attract and retain the high quality people the organization needs
  • Develop a positive employment relationship and psychological contract
  • Align reward practices with both business goals and employee values
  • Operate in ways which are fair, equitable, consistent and transparent

Recognition Builds Employee-Employer Relationships

It is important to note that not all employee rewards are monetary. Recognition is one of the most powerful methods of rewarding employees and is something you can start doing today.

The key with any reward or recognition is the immediacy and authenticity with which it’s given. Just like training your precious pooch, employees will learn quicker and perform more efficiently if you reward them immediately.

Recognition can take the form of a simple “thanks for your hard work today Joe” or could be something pre-planned like an employee of the month certificate. Recognition is easy to fit into the workplace and shows your employees that you see their work and appreciate it in the moment.

Kim Harrison of Cutting Edge PR describes the importance of recognition. She writes, “Appreciation is a fundamental human need. Employees respond to appreciation expressed through recognition of their good work because it confirms their work is valued. When employees and their work are valued, their satisfaction and productivity rises, and they are motivated to maintain or improve their good work.”

If you’re looking for this principle in the wild, one of the most well-known forms of recognition exist within our military in the form of ribbons and medals.

Beyond every day recognition, rewards encourage employees to strive to reach goals and compete within teams for better performance. Rewards can relate directly to the workplace such as a new piece of equipment or an improvement in the work environment or could be something for personal use like an iPod or a new jacket. Rewards can also be an experience such as a trip to Hawaii or a certificate for a nice dinner.

 How Does Proforma SI View Employee Rewards?

Here at ProformaSI, we believe strongly in an employee reward system that rewards good work and behavior, promotes responsibility and ownership, and boosts overall morale within your organization.

We deliver a proven blend of software, rewards and program design that will recognize, incentivize and train employees.  Badges and social sharing amplifies employee success.  Gamification creates a culture of fun competition.  Quizzes and video keep employees engaged.

Our merchandise mall offers a retail shopping experience with unlimited choices.  The sky is the limit when it comes to rewarding desired behaviours from e-Cards, gifts and even cash or trips.

 Your Turn!

As an employer or an employee, why is rewarding people on the job important at your company? We’d love to hear your thoughts in the comments below.


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