Why investing in staff rewards is one of the best means to achieving company goals
For many years, we’ve held the understanding that businesses need to make a profit to survive and that a productive workforce is the means to that end.
At the same time, we’ve learned that people aren’t machines but have delicate needs for rest, recognition, and purpose in what they do. As organizations strive towards meeting their sales targets, it’s crucial that they don’t exploit their greatest asset – their people.
The goal isn’t just to protect this resource, but to make the very most of it! There is plenty of data to suggest that an engaged and rewarded workforce is one of the greatest contributors to an organization’s performance and bottom line.
- A Gallup employee engagement report found that businesses that scored the highest on employee engagement were 21% more profitable than their counterparts.
- The same Gallup study found that companies with highly engaged workforces scored 17% higher on productivity.
- A long-term study on company performance found that companies with high-performing company cultures experienced a 682% increase in revenue compared to only 166% increases in revenue for firms without these cultures.
Organizations are pivoting away from the idea that profitability is the only measure of success. A FastTrack 360 study found that 71% of executives say that employee engagement is critical to their company’s success.
With this new perspective, business leaders are constantly on the lookout for ways to create a happy workforce. They can choose to make professional development a priority, offer unique perks, consistently involve staff in the organization’s vision, or invest in creating comfortable office (or remote) environments where employees can do their best work.
But perhaps one of the most beneficial ways to engage your workforce towards meeting your organization’s goals is to invest in staff rewards.
Staff rewards are in high demand
Basic psychology tells us that we’re more likely to do a good job if we know there’s a reward waiting for us at the end. This hasn’t changed in years. A HubSpot study found that 69% of workers said they’d work harder if they were better appreciated. Offering rewards is one way to show this appreciation and recognition.
Since rewarding staff increases productivity and the quality of work performed, we can conclude that it makes good business sense as an investment.
Employee rewards offer the benefit of choice
One assumption is that staff prefer cash rewards like bonuses, but research shows that 65% of employees actually prefer non-cash incentives. This is because people prefer having the option to choose. Travel rewards, support towards pursuing hobbies, additional days off are rewards that can be very memorable to employees.
Since what each person values is different, the more choice you can offer to your staff on how they can be rewarded, the better. Using Employee rewards and recognition software makes exploring and providing these choices very easy. When you use Bucketlist, staff can choose between gift cards, local experiences, or skill development to name just a few rewards.
There are a few options on the market for employee rewards and recognition programs. Before making your selection, it’s important to understand what to look for in a corporate rewards program.
Corporate rewards programs improve retention
When you develop a strong rewards program for your organization, you are far more likely to hold on to your employees.
Research by Forbes found that businesses with recognition programs have 31% lower turnover rates than those who do not.
People are much much less likely to fantasize about the grass being greener elsewhere when they are happy where they are. Turnover costs to replace employees are high in every industry. When you find ways to reward your employees for a job well done, your company can avoid a very crippling cost.
Though staff rewards can be used as a tool towards maximizing profitability, it’s important to understand that times are changing in terms of what’d considered to be the best measures of business success. Today, employee engagement itself is seen as one of the most noticeable characteristics of a high-performing organization.
Many companies are still missing out on implementing strong employee rewards and recognition programs. By incorporating rewards into your organization, you can ensure you create a favourable work environment, become more competitive in your niche, drive down turnover costs, and make massive strides towards accomplishing your company goals.
Ready to start exploring a corporate rewards program? Set up a time for a free-demo of Bucketlist to see if it’s right for you.