Why are more companies starting to use reward schemes?

Thursday, 24 November 2011 04:55

Why are more companies starting to use reward schemes?

Why are more companies starting to use reward schemes?

Businesses are increasingly looking for alternative ways to reward their employees without incurring financial losses. This is why they're beginning to turn to reward schemes, which will provide their staff with incentives to keep working hard.

A lot of companies are facing monetary restraints and, while they may want to show their workers recognition of their efforts, it could be difficult for them to do this by offering pay rises or bonuses.

Therefore, by providing staff rewards in other ways, companies will be able to show their employees that they appreciate all their hard work.

There are many different ways employers can give members of staff recognition, from offering them vouchers to setting up employee benefit schemes.

You may want to give your staff discounts on the high-street or help them lower their everyday costs such as their grocery bills. These will tell your employee that you are a caring business, which might encourage them to continue working for you for longer.

Indeed, one major advantage of offering rewards to your workers is that it encourages staff retention; if employees feel as though they are receiving praise, recognition and benefits for their efforts, they are less likely to look for a job elsewhere.

Conversely, an unhappy worker who thinks their employer does not give them rewards for putting in the hours may be tempted to move on to another company where they feel their efforts will be appreciated more.

As well as businesses having to deal with tight finances, so too are employees. Therefore, while they may be unable to receive a pay rise if they look for another job, they are likely to be comparing other work incentives, including staff rewards. If you offer these benefits, this could put your firm in a superior position to another.

It is also worth investing in prizes to give out to members of staff who have helped your company grow; offering long service awards and retiring gifts could be effective ways of showing your gratitude to workers, as well as demonstrating to other employees what they could receive if they stay the firm.

Companies are also beginning to realise that these gifts could have some benefit if they offer their consumers similar rewards. Why not show your thanks for customer loyalty and provide your most frequent buyers high-street vouchers or store cards so they not only feel valued, but continue to purchase from your business?



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  • How should staff reward schemes be organised?

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