Employee Rewards Increase Productivity

Employee Rewards Increase Productivity
  • Opening Intro -

    Employee bonus programs have become controversial over the last couple of years.

    Proponents of bonuses believe that monetary rewards increase an employee's productivity and performance; people who don't like bonus schemes feel that they are a waste of an organization's money.


Many studies have been done showing the effect of bonuses on employees; they suggest that bonuses and rewards play a critical role in creating a competitive and high-performance environment without putting too much pressure on the employees.

If a company is thinking about adding a bonus structure to their organization, they need to keep the following success tips in mind:

Fair Incentive Structure

If employees see that your organization gives bonuses out fairly, they are likely to put in their best effort to try to get one. Employees must see that your reward system pays out a fair compensation; bonuses should be tied to the value of the employee and the work they do.

It helps if you know what motivates your employees; oftentimes, equity motivates them to do a good job every day. When you compensate your employees fairly, it contributes to a feeling of pride and loyalty to your business.

Reinforce Core Values

Businesses that successfully create a bonus structure consistently make sure to reward employees that reinforce their core values and strategies. Always make sure that your bonus structure coincides with your company’s goals. Make sure to never reward bad behavior; even if the bad behavior makes you more money. If you reinforce bad behavior, you show your employees that they can make money by not coinciding with your core business values.

Don’t Forget To Link Incentives To Long-Term Performance

If you link rewards to long-term performance, your employees are likely to try their hardest on a daily basis. Bob Bratt stresses the fact that short-term bonuses tend to work for a short amount of time; once the bonus period is over, people go back to their regular routine. If you incorporate both long and short-term bonuses, you guarantee that your employees are consistently giving you their best effort.

Try Group Bonuses

Reward systems don’t always have to compensate one person. Businesses can motivate groups of people by offering them performance bonuses as a whole; this causes people to work together as a cohesive unit. When a lot of people have one goal, they are likely to work together and help each other out. When you have a lot of employees helping and motivating each other, it does wonders for your company’s profits.

Flexible Rewards

Rigid reward systems tend to not work as well as flexible ones. A business that is flexible about their rewards can tailor their system to address employee needs; if employees respond better to certain rewards, there is no reason to not concentrate on that reward system. Rigid systems don’t give you the opportunity to adjust based on employee preference and responsiveness.

Rewards For New Skills

Employers often have good results when they reward employees for skill-based achievements. When you do this, you give your employee a reward for learning something new; the employee ends up happy, and you have an employee that is valuable to your organization.

If you consistently reward employees for learning new skills, your organization benefits from their knowledge. It’s a small price to pay for a workforce that is motivated, knowledgeable and loyal to your company. Employees who have mobility and access to training are consistently happier than employees who feel like they are stuck in their jobs with nowhere to go.


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