Rewards

Topics: Management, Motivation, Leadership Pages: 5 (1526 words) Published: January 2, 2015
Rewards
Companies reward their employees with both tangible goods, as well as praise. For example, a sales department may offer a monthly bonus to the highest earner. Not all tangible rewards come in the form of money. Some companies host free lunches, or give away company gear to good workers. Many managers choose to reward their best employees by simply praising them for a job well done, or by recognizing the hard work they put in to a project. Workplace reward systems are incentive programs that encourage employee engagement and productivity by offering bonuses, increased pay, additional time off or other awards for a job well done. Reward systems recognize staff members who excel in areas such as customer service, loyalty and sales ability. Organizations implement workplace reward systems to retain employees, increase morale and improve overall service and productivity within the company.

Here are 10 factors that motivate employees:
1. Studies have shown that for employees to be motivated, recruiting minimums must be present. These include pay, working conditions and job security. Without these, headhunting even the best employees will yield undesired performance results. 2. Employees who are attempted to be motivated by the fear of losing their job will have less energy and drive to complete daily tasks. This will have the opposite of the desired effect. 3. Rather than money, studies have shown that how creative an employee feels when working on a project is the strongest and most pervasive driver. Rewards that are strictly monetary will stifle the creativity of a project and an employee’s unique approach. Pure monetary gain takes the “interesting factor” out of a job. 4. The most sought after employees have a tendency to seek out challenges, to extend and exercise their capabilities, to explore and to learn. 5. Imposing too many laws, rules and formal processes will often impede the ability to motivate staff. The more set a process is, the less likely it is going to get done correctly. 6. Low compensation can not only hinder motivation and performance, but can actually create vengeful employees. When human beings feel they are being inadequately paid, they will tend to shift the majority of their focus on the unfairness of the situation. 7. Recent studies have shown that people are not predominately motivated by external incentives such as stock options or a higher 401k plan. Sense of self-worth while performing that job is a much more significant driver. 8. Employees who are engaged in routine work (i.e. factory workers), can be motivated by rewards and punishment – “the carrot and the stick method.” When attempting to apply this method in more educated, corporate positions, it can have devastating motivational effects. 9. Higher financial rewards lead to lower performance. Studies have shown that paying an employee too much can have adverse effects on their work performance. As a matter of fact, they tend to generate less output than fairly paid workers. 10. Hiring people who are overly money driven is often a poor idea. When an individual is overly concerned with pay, it will hinder their ability to provide return on investment. Rather, the joy of discovery and challenge of creation are values hiring managers should pay close attention to when interviewing. They are too complex to be motivated solely by rewards and fear. Here are some limitations of transactional leadership styles: Employees want an enthusiastic leader. Purely transactional leaders fail to create enthusiasm for their work. Employees benefit from leaders who help them feel passionate about what they do. These leaders first show passion about their job themselves. Then they get their employees to buy into it. Employees do better when they feel part of the project. Taken too far, transactional leadership can make employees feel like automatons. Employees can be happier and more motivated when they feel involved and committed to their work. Most...
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