How To Get The Most Out Of Rewarding Your Employees
By Steve Bradbery, Ceridian Stored Value Solutions
During challenging economic times, some employers will think staff retention is not something that they need to worry about but, like good clients, the best employees will always have their pick of employers.
The most successful businesses are therefore those that worry about motivating staff as much as they worry about delighting customers. Whilst it may be tempting for employers to think they can save money by cutting the incentives budget, it is actually a false economy.
One study reported that 75% of employers accept that incentives raise morale (Grass Roots: “Corporate Faith...
...in the Power of Incentives – A Research Report” April 2009), whilst another (Employee Benefits Research 2009: evaluation of and attitudes to benefits) found that 75% consider rewards for individual performance to be important to their staff. However, although employers see incentives as being desirable, some fear that adopting an incentive scheme will be expensive, particularly SMEs. This is a common misconception; in reality even a minimal budget provides significant return on investment when the scheme is managed effectively.
Traditionally employers have rewarded staff by giving them a ‘bottle of something’, cash bonuses or vouchers. The bonus often arrives months later in the payslip and is not memorable and motivating unless particularly significant. Commonly it gets swallowed up in living expenses. The bottle of something can often be unappreciated and does not encourage healthy living. Employees are considerably better motivated when they can choose how their rewards are spent.
A series of smaller rewards, handed out more frequently, can be used one at a time, or accumulated to make a larger, more significant purchase, perhaps something they wouldn’t normally consider buying for themselves. One of the easiest ways to give your employees regular and unexpected rewards is through a prepaid... continued on page two >