The Importance of Employee Rewards


Employers must offer employee rewards that the company's employees find meaningful. Well-managed employee rewards programs have tangible affirmative effects on the employer’s bottom line in several ways.


One effect a good employee rewards program has is a positive impact on employee retention, as mentioned at

Health and Safety

Solid employee rewards programs also have measurable positive effects both on safety and workplace health, thus reducing overall health-care costs for both employee and employer.


A crucial outcome of a good employee rewards program is enhanced motivation among personnel, including helping the employees to make connections between professional goals and personal goals, as described at


A solid employee rewards program also increases employee engagement in the workplace, a factor that converts into improved performance and better customer experience.

Return on Investment

Employee reward programs provide a concrete return on investment (ROI). Research has shown that employee recognition and rewards of a nonmonetary basis show a greater return on investment than do cash awards, according to

Bottom Line

Ultimately, from the employer's viewpoint, employee reward programs have a positive effect on the bottom line for reasons such as the positive effect on health care costs, performance, and workplace engagement.

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