Apart from just receiving a fulfilling paycheck, employees also feel the need to be recognized and appreciated by their employers. The efforts to appreciate and recognize the input of employees by their employers tend to act as a motivational factor that in return improves on employee performance. In attempts to make employees feel appreciated, employers tend to conduct employee rewards programs. These are programs that are designed to express gratitude to employees for various achievements.
Types of Rewards Programs
In general, employee rewards programs are normally classified into two. That is extrinsic rewards and intrinsic rewards. An important point to note is that the types of rewards offered to employees will have varying motivational levels depending on the type of reward. Here is a brief description of the two types of rewards.
These are the rewards that are externally related to the employee. Extrinsic rewards are well known to effectively increase employee performance. They are further categorized to:
1. Monetary Rewards. This may come in the form of a pay rise or a bonus. Most employees will find financial rewards quite motivating compared to the other kind of rewards.
2. Social Rewards. Social rewards can come in the form of a positive feedback, praise, or recognition. Timing is a critical factor when giving a social reward. Good timing increases the impact.
3. Material Rewards. These kinds of rewards come in the form of goods or products. For example a vacation, the beautiful corner office, or a company car.
These are the rewards that are internal to employees and employers normally have little control. Employees who are intrinsically motivated work for their own satisfaction. An example of an intrinsic reward would be to give an employee the freedom to work or undertake duties outside the usual environment.
Different employees will have different reactions to the same reward. Employers should, therefore, take an initiative to understand their employee at individual levels. Putting in place effective employee rewards programs will motivate employees and in return, the company benefits from the increased productivity of employees. Implementing appropriate reward programs can have a positive impact on a company’s climate and culture.