The need for employee rewards and workplace incentives
Everyone wants to be appreciated, valued, and recognized for their contributions. When a person performs well or beyond what was required, recognition becomes even more important. This is why employee recognition programs have proven to be an effective and important tool that all businesses should take advantage of.
When an employee is happy, their productivity increases. This leads to more stable and consistent performance from this same employee. When one employee performs well, other employees are also motivated and inspired to follow suit, building a positive company culture. These are just some of the many benefits that show a need for employee rewards in any organization.
In order to truly benefit from this recognition program, the organization must carefully and properly design the program to suit its needs. There is a requirement to understand the business objectives and the present state of the employees in order to design and implement a beneficial recognition strategy. After doing this, it is important to measure the impact: What changes actually occurred as a direct result from the program?
Measuring the effects of rewards and recognition
It is important that businesses track the return on every investment made into the business, and it is no different with an employee reward program. There are several Key Performance Indicators (KPIs) that businesses can use to measure and gauge how effective their employee reward programs are. These reward and recognition KPIs can help a business understand the current standing of their employee recognition efforts and, most importantly, figure out areas for improvement.
The first thing that employers can track is the satisfaction score. Employers should strive to ensure that the overall satisfaction score of their employees is high, as this signifies how happy they are with the organization as a whole. The implementation of an employee reward program should lead to an increase in individual and overall employee satisfaction scores.
Another KPI is the attrition of employees, especially those top performers. If your key employees are leaving, then you need to rework your recognition program and figure out what your people need to be happy.
The rate of absenteeism is another rewards and recognition KPI that can be used to measure the ROI of recognition programs. If an employee is well recognized and happy with their job, it is unlikely that they will be absent from their work above average.
The productivity of the human resources department within the organization should also be measured, as you need to be sure your reward programs push and motivate your employees to produce quality work.
Lastly, you’ll want to consider your customer satisfaction metric. While this KPI may not be obvious to some in this context, it really does matter here. When employees are rewarded effectively, they will perform their tasks well, which will directly lead to happier customers. So, if your customers are happy, chances are that your employees are happy as well.
Getting started with rewards and recognition KPIs
Tracking all these KPI’s for a reward program is no small task. The business has to have a solid measurement and monitoring process in place for these KPIs to be tracked. And, they need to be measured both before and after the implementation.
The best path forward is to find the right partner to work with — finding an organization with a reputation and track record of helping businesses implement workplace incentives programs, as well as measure their returns credibly, is how you can easily implement an effective and tailored solution. If you’d like to measure the effects of your employee recognition program, Online Rewards is a fantastic choice with a solid track record of success.