Should A Business Have A Good Employee Rewards System?

Posted by jennifertay on December 4th, 2017

In any organization the employees are the most significant asset an employer can have. Therefore, to keep them glued to the organization's goals, you have to keep them motivated. That is the reason the employer should have a good employee reward program - http://www.edenred.com.sg/.

One factor that comes to the mind of any management when developing an employee reward program, is the goal of the organization. Whether the organization is performing on a large or a small scale level, they will want the employees to be tuned to their vision. This is because they understand that as much as they are motivating their employees, it means that they have to incur more costs. Additionally, they understand that these rewards come in a different package from the salary, or the merit system.

These systems aim at giving the necessary rewards to employees based on two factors: their performance and their behavior. In terms of performance, they will recognize staff that will have done the necessary work to meet the firm's goals. For instance, when employees make commendable profits to the organization, then employers will give a small percentage from it. In terms of behavior, a staff member who comes to work early and leaves late, will be rewarded by the top management.

Before coming up with an employee reward program, the employers have to sit down and analyze several things. In terms of the goals, the employer should know whether they will form the system on the basis of individual or team accomplishments. They will state the department of their firm that they wish to include, and the desired behavior that they would want to see in that same department.

They should also consider how they will measure the reward. Such rewards include bonuses in their salary; profit sharing, in terms of commission; and stock options or equity ownership -where employees are free to own shares within the company.

At the end, if the appropriate employee reward program is in place, the organization should notice changes in the behavior of their employees, and an incredible move towards the goal and the vision of the firm.