Reward and Employee Engagement

 

                                                                                                          (Image:https://blog.vantagecircle.com)

In recent years, one of the most important aspects of a successful firm has been the level of employee engagement. Productivity increases, employee morale is boosted, and innovative ideas are generated when workers are strongly engaged (Fahrizal and Munir, 2022). Offering prizes is one approach that has shown to be helpful in boosting employee engagement, which is a challenge faced by many businesses when trying to identify effective methods to engage their workforce (Fahrizal and Munir, 2022).

Motivating workers to meet objectives, enhance performance, and raise job satisfaction may be accomplished with the help of rewards (Marginingsih and Khaeri, 2022). Rewards come in a variety of forms, including monetary incentives and recognition programs, and they can be utilised in any combination. Marleyna, Devie and Foedjiawati (2022) examines that employees have a greater propensity to be involved in their job and devoted to the organisation when they believe that their efforts are respected and appreciated.




Monetary Rewards

Bonuses and pay increases are regular monetary incentives given to employees (Marleyna, Devie and Foedjiawati, 2022). Fahrizal and Munir (2022) examines that these incentives may be used to reward outstanding performance or to motivate workers to reach predetermined targets. In sales or commission-based professions, where workers can see the immediate influence of their efforts on their compensation, monetary incentives may be very effective (Skopak and Hadzaihmetovic, 2022).

According to Skopak and Hadzaihmetovic (2022) financial incentives are effective motivators, but they may not be viable for your business. It may be difficult for smaller organizations to provide staff with large incentives or salary increases, and some workers may not be motivated by financial rewards alone (Yaqoob, 2022). Alternative forms of compensation may be considered by firms in such situations.


Non-Monetary Rewards

Employees might be motivated in various ways than financial ones. Incentives might be anything from public acknowledgment to a more accommodating work environment to the gift of additional time off (Marleyna, Devie and Foedjiawati, 2022). In light of the recent COVID-19 outbreak, allowing workers the option to work from home has become more attractive (Marginingsih and Khaeri, 2022).

When a company is unable to provide substantial increases or bonuses, other forms of recognition might be just as motivating (Marginingsih and Khaeri, 2022). These incentives may be used to show appreciation for hard work, boost morale, and foster a healthy work-life balance. When workers believe their efforts are appreciated, they're more invested in the success of the business (Skopak and Hadzaihmetovic, 2022).


Employee Recognition Programs

Programs that formally thank workers have also been shown to increase participation. These events might be as basic as a handwritten letter of gratitude or as complex as a awards dinner program (Skopak and Hadzaihmetovic, 2022). The objective is to show appreciation for the staff's efforts and the value they provide to the business.

When done well, recognition programmes can do wonders for boosting morale and making workers happier in their jobs. Employees who believe their hard work is appreciated are more likely to maintain their high standards of performance (Marleyna, Devie and Foedjiawati, 2022). According to Yaqoob (2022) employees are more likely to work together and value each other's contributions when they are recognised for their own efforts.

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Conclusion

Motivating employees and encouraging a positive environment at work may both be accomplished with the help of rewards. Companies may inspire their workers and increase productivity via a variety of means, including monetary incentives, non-monetary prizes, and recognition programmes. Companies may increase their performance and success by creating a culture of engagement, trust, and loyalty among their workers via recognition programmes.


References

Fahrizal, I. and Munir, S. (2022) ‘The influence of leadership, reward system and self-efficacy on work engagement of frontline employees at PT. TIKI JNE Jakarta’, International Journal of Business Ecosystem & Strategy (2687-2293), 4(2), pp. 28–36. doi: 10.36096/ijbes.v4i2.323.

Marginingsih, R. and Khaeri,  K. (2022) ‘How work environment and rewards affects the employee engagement’, IJEBD (International Journal of Entrepreneurship and Business Development), 5(1), pp. 109–117. doi: 10.29138/ijebd.v5i1.1615.

Marleyna, Y., Devie, D. and Foedjiawati, F. (2022) ‘Reward system, employee engagement, and the role of employee satisfaction as mediating variable’, Petra International Journal of Business Studies, 5(1), pp. 97–108. doi: 10.9744/ijbs.5.1.97-108.

Skopak, A. and Hadzaihmetovic, N. (2022) ‘The impact of intrinsic rewards on employee engagement in the food industry in Bosnia and Herzegovina’, International journal of business and administrative studies, 8(3). doi: 10.20469/ijbas.8.10001-3.

Yaqoob, S. (2022) ‘Impact of extrinsic rewards on job outcomes: Role of employee work engagement and perceived organizational support’:, Journal of arts and social sciences, 9(1), pp. 64–77. doi: 10.46662/jass.v9i1.102.


Comments

  1. I found this blog to be well-written and educational. The author has successfully emphasized the significance of employee engagement in a successful company and has offered various strategies to increase employee engagement, such as providing rewards. I appreciate how the author used a variety of sources to support their arguments and provide the reader a thorough understanding of the subject.

    Are there any potential negative effects of rewarding employee involvement, and if so, how can businesses minimize them?

    ReplyDelete
  2. Thank you for your positive feedback on the blog post article.

    While rewards can boost employee engagement, there may also be unintended consequences that companies should be aware of and work to reduce. For instance, awards may actually demotivate workers instead of motivating them if they are not given out equitably or if they are thought to be random or meaningless. Additionally, if the emphasis on rewards shifts too much in one direction, it may lessen the intrinsic drive that workers feel for their task.

    Businesses can take a number of actions to reduce these negative impacts. They can first make sure that awards are given out fairly and openly and that staff are aware of the requirements for getting them. Second, companies can make an effort to strike a balance between the usage of rewards and other motivating elements, including offering chances for advancement or fostering a supportive workplace culture. Last but not least, companies should think about providing non-cash incentives like praise or recognition, which can be just as successful as cash incentives at boosting employee engagement.

    ReplyDelete
  3. The article provides a comprehensive overview of the importance of employee engagement and the various ways in which rewards can be used to enhance employee motivation and engagement. The use of both monetary and non-monetary rewards, as well as recognition programs, is highlighted as effective means of encouraging employees to perform at their best and to maintain a positive attitude towards their work.
    My question to you Udesh, While the article emphasises the importance of rewards in promoting employee engagement, are there any potential downsides to relying too heavily on rewards? How can companies strike a balance between rewarding good performance and avoiding a situation in which employees become overly focused on rewards to the detriment of their work or the broader goals of the organisation?

    ReplyDelete
    Replies
    1. Employees may get overly fixated on rewards and lose sight of the greater picture, even while awards can be a potent tool for fostering employee engagement. Companies need to strike a balance between rewarding excellence and making sure that workers stay committed to the organisation's larger objectives. This can be accomplished by matching rewards to the company's vision and values and highlighting the value of intrinsic motivation in addition to extrinsic rewards, such as a sense of autonomy or purpose. It's crucial to keep in mind that incentives alone won't result in a productive workplace, and organisations should place more emphasis on other aspects of engagement and satisfaction, such as leadership, communication, and employee development.

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  4. Thank you for summarising the key points from the article on the value of employee recognition and rewards. The offered data emphasises how employee retention and engagement may be improved by recognition programs, which is advantageous for the business. The two primary reward categories, monetary and non-monetary, were also covered. Overall, it is evident that rewarding and recognizing employees can inspire workers and foster a healthy workplace environment.

    ReplyDelete
  5. Very interesting article Udesh.
    Increased productivity, improved employee retention rates, and higher job satisfaction are all possible outcomes of successful recognition and rewards programs. In addition, it creates a sense of unity and collaboration among workers, which is good for the organization as a whole.

    ReplyDelete
    Replies
    1. I agree with the things that you said. Programs for rewards and recognition are crucial for retaining and motivating employees. Employee productivity, commitment, and job satisfaction are all more likely when they feel valued and appreciated at work. Additionally, recognition and reward programs can help to create a productive workplace environment that encourages cooperation, teamwork, and a sense of shared purpose. Organisations may increase employee engagement and productivity by investing in these programs, which can have a major influence on their bottom line.

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