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.

Retention

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

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.

Motivation

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 Maritz.com.

Engagement

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 Loyaltyworks.com.

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.

References

• Loyaltywork: Employee Recognition and Reward Programs
• Maritz: Employee Reward Programs

Resources

• IncentiveLogic: Internet-Based Incentive and Reward Solutions