Budgeting for Employee Rewards and Recognition Programs

Employees like, and even desire, recognition for good work. While a pat on the back may do some good, they would appreciate some other form of recognition, such as employee rewards or bonuses. Inc. Magazine realizes how essential rewards programs are and provided a number of strategies to implement affordable strategies.

Chair of the labor and employment group at the law firm Garvey Schubert Barer, Nancy M. Cooper stated, “The goal of any rewards program should be to engender the loyalty and team spirit and have a good workplace where people feel appreciated.” She added, “It’s also likely to help you meet business goals especially with small to mid-sized employers.”

The magazine listed three useful areas to look at when considering implementing reward programs

1. What activity or behavior do you want to reinforce?

Analyze your company’s goals and decide if you want to reinforce: job performance in general or specific areas; workplace behavior, or goal-oriented or positive behavior. Do you want to focus the rewards on individual employees or on teams?

2. Motivate your employees to be involved and participate.

In order for reward programs to work, the employees must be aware of the programs and believe that are valuable, even if it’s not all based on monetary rewards.

3. Companies need to do their homework.

While your company wants to motivate its employees, it also needs to make sure the rewards programs are suitable and beneficial to the company. One particular program will not work for every company; the programs need to be tailored to your company’s needs, finances, goals, and employees.

Further enforcing the benefits of reward programs, London’s Chartered Institute of Personnel and Development conducted a study earlier this year that demonstrated the effectiveness of reward programs when combined with employer branding.