It has been proved that employee rewards and benefits have a direct impact on employee behaviour, can impact job satisfaction, employee productivity, retention and creativity within teams in Singapore. For a thriving company and above satisfactory deliverables, employees need to feel seen and affirmed regularly for their endless efforts.
In this day and age, companies should not only be using monetary means as a form of reward. In fact, bonuses may not be enough to bring out the best qualities in an employee.
Types of Employee Rewards
- Intrinsic vs Extrinsic Rewards
Intrinsic rewards are non-tangible but yield higher levels of job satisfaction. This includes impressive job titles, career growth, personal accomplishments, recognition from the management and more. These have the knack for making employees feel valued at their workplace.
Meanwhile, extrinsic rewards are tangible, typically received by employees after delivering good performances. This includes financial rewards such as bonuses or pay raise, material rewards such as physical gifts and social rewards like gym memberships and parking space. Such extrinsic rewards encourage improved work performance through appreciation.
In the long run, non-financial rewards may be the more feasible route to go with as:
- It has long-term effects
- It requires lower investment for the same performance
- It is a more affordable option for small and/or new businesses
- Membership vs Performance-based rewards
Membership rewards come in the form of benefits and services offered by employers to the employees. This could be in the form of an annual end-year bonus, a company retreat, new office essentials and more.
Performance-based rewards are distributed based on an employee’s performance in a company. These rewards are given out in the form of incentives, group bonuses or commissions.
Why do employee rewards work?
Each employee will have different responses to each reward type.
Employee rewards work because they motivate and drive specific behaviours in people. Simply put, employees are paid to complete their responsibilities. When monetary involvement is taken out of the equation, what other ways can you persuade employees to still fulfil their tasks at work?
This is where employee benefits come in. Not only will it push employees into achieving aggressive goals, but it will also drive them into going above and beyond the set objectives.
How companies can use rewards to influence performance & motivation
- Align rewards with the company’s goals
Incentives implemented need to drive behaviours but they have to motivate and encourage the right behaviours. This means your chosen incentives need to be aligned with the company goals as well.
For a start, you can use the ABCs of incentive planning:
- A: Aligned with corporate objectives
- B: Benchmarked against industry data
- C: Constructed to drive the right behaviours
- Tailor rewards to job roles
When rewards are carefully adapted to fit an employee’s personal motivation, interests or likes, employers would have succeeded at inspiring them on a personal level.
Employers should never assign similar rewards to high and low performers as it would create unwanted unfair situations. This may lead to high-performing employees sourcing for new companies which can offer benefits that will better reflect their hard work. While at that, the average-performing employee may also come to the conclusion that their sub-par deliverables are off the roof.
While money is a great motivator, bonuses are not always the answer to recognising employee performance. Non-cash rewards such as tickets to a sporting event and shopping or travel vouchers would also be a great form of motivating reward.
Happy employees make happier employers
When employees are rewarded and recognised for their hard work and efforts, they feel appreciated and seen by the management. In return, employers will not only have diligent and resilient employees but also ones who are happier and loyal to the organisation.
70% of workers said they feel happier at home when they feel happy at work. Attaining satisfaction at home is important as it imposes quite an impact on the employees’ ability to execute their responsibilities well when in the office.
Here are more reasons why introducing an employee rewards system may actually reap more benefits for the employers in the long run.
Higher work productivity
The foundation of crafting a rewards program is to spur employees on into working harder and smarter. For a team of people to be productive, they have to know they are appreciated before their motivation drive can increase.
In fact, many Millenials and Gen Z employees feel that they need rewards to improve their level of productivity when it comes to working. Other than fair compensation and job perks, they also want to be part of a meaningful and purposeful task. Following the current trend, incorporating rewards and recognition programs seems to be the key to attracting and retaining young and fresh employees.
Increased trust
Something as simple as recognition and reward is enough to increase two-way trust in a workplace. 90% of employees who have received some form of recognition for their work have higher levels of trust for their bosses. Meanwhile, 50% of the employees who have never been recognised only has an average level of trust for their employers.
When employers have respect and appreciation is on display, it shows how they have trust in the employees. This persuades them into sticking around for a long time and never underperform.
Improves workplace morale
Actively recognise employee performance by keeping an eye on your employees objectively. Regular feedback can be given while monitoring performance data.
Top performers deserve to be recognised in person, on a leaderboard or even on a company-wide email blast. For individuals motivated by affirmations, this form of reward inspires them even more than money can.
Provides autonomy
Putting in place engaging employee incentives that guide individual behaviour will give them a sense of authority rather than feeling directed at work. This motivates optimum efficiency.
Where can I start?
OneHealth is currently offering an affordable one-stop solution for employee benefits that are fit as rewards, for SMEs.
Some programs included in the line-up are:
- Annual basic health screening
- Fitness programs
- Extensive outpatient benefits
- Lifestyle & entertainment offers and more
These programs are set to improve the quality of life at work and can be included in your new employee reward system.
More information can be found on this page! Get in touch with us to find out how exactly these programs can help you increase productivity at your workplace.