Académique Documents
Professionnel Documents
Culture Documents
Quarterly Bonuses
Spot Bonuses
Many organizations choose to thank workers 'on the spot' for
achievements that merit particular notice. These bonuses are
generally given in recognition of an employee exhibiting
exceptional productivity.
Peer-to-Peer Recognition
'Gold Stars'
Verbal Praise
Microbonuses
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Building your company is the easy part. Implementing sustainable practices that will keep it in good
health is when the real work begins. One of the most important issues is keeping your employees
content and focused on your goals. It is increasingly rare to hear about companies with an average
employee tenure of more than a few years. Low turnover often means that employees are happy
and happy employees are productive employees. The hard part is to find a balance between
effective employee rewards and the cost of these rewards to the company. This is where your
innovative and creative ideas can help you tailor this system to your business. Identify important
behaviors that help your company grow, show commitment, prove productivity, and achieve goals.
Here are a few different types of employee reward systems:
Compensation
The most obvious and most effective way to reward employees is monetary compensation. Your
employees are mostly driven by financial benefits that enable them to fulfill a certain lifestyle.
Depending on the maturity of your company, your ability to give bonuses varies. When you do give
bonuses, make sure you differentiate these rewards from regular pay. Do not pay a yearly bonus
unless it is deserved. Tie monetary incentives to goals and milestones to promote productivity.
Benefits
Your reward strategy should be multi-channeled. Benefits are some of the most common types of
reward systems for employees and can help to attract and retain talented employees. They may
include a good healthcare plan, daycare, shuttle transportation, and assigned parking spots. Making
your employees commute easier is a great way to compliment them on their work. Aiding them in
aspects of their lives outside of work goes a long way and improves commitment.
Recognition
It is good to compliment the tangible aspects of your reward ecosystem with written and verbal
recognition of achievements. They can take the form of company memos, mentions in speeches in
front of managers, and employees, as well as private, one-on-one talks. Utilizing different forms of
recognition will ensure your top achievers that their work is appreciated and will motivate others to
strive for recognition.
Appreciation
Appreciation completes the ecosystem of reward and can come in many forms. It can include
instituting casual Fridays, catering in food once a month from a favorite restaurant, weekend
getaways, company lunch outings, and fresh snacks on Monday morning. You can tailor your
appreciation approach to your budget and business model, effectively incorporating it into your
company culture.
Consistency
Once you have crafted every aspect of your reward system put it to paper and execute it consistently.
Be honest and thorough with your reward practices and your employees will follow you. Once you
incept a reward tradition see that it is executed in the most consistent way possible. Consistency is
the most important aspect of all types of reward systems for employees.
http://blog.rgbc.com/types-of-reward-systems-for-employees
Trust and ask for inputWhen you show others that you trust them, they
begin to do things on their own initiative. They create energy for your
organization. If you look over their shoulders constantly, youll get employees
who will only do what they are told.
Showing trust means asking for help in making important company decisions.
When a major Detroit car manufacturer changed its management approach,
one of the workers said, Ive been working for this company for twenty-seven
years, and before the recent changes, not once in that time did anyone ask
me what I thought should be done. For the first time they are now receiving
the benefits of my head, not just my hands.
Intrinsic rewards
Intrinsic rewards are the non-physical rewards. They cannot be seen or touched
but are emotionally connected with the employees. In other words, intrinsic
rewards can be defined as the feeling of contentment one finds in completion of
any task.
Sense of achievement
It takes lots of efforts, skills and courage to perform any task and there is no
better feeling than the joy one feels seeing his hard work pay off.
Recognition
Everyone wants to be renowned at the place where they work. It is rewarding
for employees when they are recognized by the co-workers and other members
of the company for the work theyve done.
People try to avoid the credit when the jobs are wrongly done. But they feel
proud of themselves when the work is perfectly done. Such feeling of pride
plays vital role in motivating them to give continuity to make even better
outputs.
Extrinsic rewards
Extrinsic rewards are the physical ones that come from an external source
(employers) only. A properly designed extrinsic reward can also be emotionally
attached with the employees as employees value such rewards.
There are various ways a company can choose to reward its employees. Some
examples of extrinsic rewards are:
Pay
A company can design good payment for the employees as the reward for
contributing their precious time and energy in achieving the organizations goal.
A good payment is motivational and is a major factor that affects job satisfaction.
Bonus or commission
When a company earns profit due to the effort of an individual or group of
employees, the company should appreciate their contribution by giving them
additional payment as a bonus or commission. Financial rewards are always
known to have received more value from the employees.
Fringe benefits
Fringe benefits are extra facility provided to the employees in addition to their
salary. Fringe benefits can be a companys car, free life/health insurance,
employee discount scheme, pension plan, etc.
Promotion
Some employees are average performing, while some others are intensely hard
working, as a result of which they make huge difference on the companys
status. Such employees can be rewarded by handing them over new
responsibilities and duties. Promotion is directly related with increment in status,
payment and power.
Profit sharing
Employees are equally creditable for the organizations progress or success as
much as the employers are. Therefore, a responsible company rewards its
employees by sharing the profit with it employees.
https://www.businesstopia.net/human-resource/intrinsic-and-extrinsic-rewards
Here is an important distinction that I like to emphasize. When talking about rewards,
intrinsic rewards are those that originate from within the person, and extrinsic rewards
are those that originate from something beyond the person.
Howeveras you might recall the previous postwhen talking about motivation,
intrinsic and extrinsic has nothing to do with whether the motivation originates from
within the person or outside the person. Instead, it means whether the motivation is
intrinsic to the activity or not.
Intrinsic rewards actually fulfills employees intrinsic factors or motivators and
thus motivates him. Examples include; giving challenging task, involving in
decision making process, giving a higher rank in hierarchy etc all these rewards
do not required to have increased salary as well and employee may be working
at higher management rank without an increase in the salary and still more
motivated.
5. Strive to get the right employees doing the work that best aligns with their
skills and interests. Instead of concentrating on what your employees cannot
do, look instead for what they can do. As feasible, readjust work and train and
mentor your employees so they can succeed. (Intrinsic reward: the employees
have challenging work that fits their skills and interests. Challenging and
interesting work!)
Intrinsic Rewards
Intrinsic motivation is internal to the person in that it is something that you have to offer yourself
and is driven by personal interest or enjoyment in the work itself. Because intrinsic motivation exists
within the individual, achieving it does not depend on others. Some people believe that the most
powerful rewards come from inside a person.
Think of that sense of accomplishment you feel once you have overcome a significant challenge or
completed an assignment or work project that required a good deal of effort. Intrinsic motivation
provides that personal pat on the back or natural high that reflects a person's ability, competency,
growth, knowledge and self-control over their endeavors. Employees who are intrinsically
motivated tend to work at higher levels of productivity and strive to develop professionally. Intrinsic
rewards include things such as: personal achievement, professional growth, sense of pleasure and
accomplishment.
Extrinsic Rewards
Extrinsic motivation is based on tangible rewards. Unlike intrinsic motivation that is self-
administered, extrinsic motivation is external to the individual and is typically offered by a supervisor
or manager who holds all the power in relation to when extrinsic rewards are offered and in what
amount. Extrinsic rewards are usually financial in nature, such as a raise in salary, a bonus for
reaching some quota or paid time off. However, extrinsic rewards can also be as simple as getting
the better office, verbal praise, public recognition or awards, promotions and additional responsibility.
These material rewards can be motivating to employees because pay, time off, advancement and
recognition are important to most workers. Just imagine how de-motivating it would be to underpaid,
overworked and unappreciated, and you can quickly see how important extrinsic rewards are to
organizational success. An extrinsically motivated person will work on a task that they do not
particularly care for simply because of the anticipated satisfaction that will come from some extrinsic
reward. For example, the employee may not be interested in the product he is selling, but reaching
the quota means the bonus, therefore he is motivated to put forth the effort he needs to meet the
sales quota.