Rewarding and Remunerating Employees
Attracting and retaining a talented workforce is crucial for the success and growth of small businesses. Recognising your employees work creates good karma, and helps your business to flourish. Rewarding and remunerating employees communicates your appreciation for their efforts in growing your business. A rewards strategy serves to motivate people who want to achieve more and inspire their colleagues. Furthermore, it relays the right message to your staff: dedication and hard work pays off and will be acknowledged.
Rewarding - Deciding What Qualifies for RecognitionThe strategy you adopt for rewarding and remunerating employees should be equally beneficial for the company and its' staff members. Therefore, it is important to clearly define the criteria for rewards. In a conventional sales setting, opting to compensate high achievers with target related bonuses and commissions works well. This practice has stood the test of time and is easily grasped and implemented. If your company needs to improve its' staff retention rate, an awards program for service to the company - with rewards presented at specific milestones -- might be perfect. If your company needs to increase turnover, an awards program based on sales could certainly have a positive impact on your profits. Every member of staff ought to be aware of the targets they must meet to be rewarded. Moreover, they should genuinely believe that these targets are realistic and achievable. Introducing an awards program that requires several years of hitting sales targets, before qualifying for any bonuses for their endeavours, would be unlikely to inspire or motivate staff members.
Rewarding - Expressing Your GratitudeRemember that not all ‘rewarding and remunerating’ means expensive bonuses or part of a large program. Rather, each day, this inspiration can be incorporated into the workplace. Whenever an employee goes the extra mile to work more hours, implement changes more efficiently or innovatively develop new ideas, a straightforward thank you email, or a day off from the office, can be extremely rewarding in its' own right. Undoubtedly, people enjoy receiving random praise for their actions, which seem spontaneous and genuine. Often, if a reward is expected, it has less appeal because it appears more contrived.
Rewarding - Being InclusiveWhile rewarding and remunerating top performers is crucial, you must also adopt an inclusive strategy, to avoid alienating those who fail to make the grade. It is best to introduce a process that rewards everyone who performs their work to the standard or level set out in the criteria. It is vital to refrain from using any strategy that gives the appearance of favouritism. Focusing on only one person for special praise and rewards might be detrimental, because it could lower morale, fuel resentment and produce a negative atmosphere in the workplace. Although in saying this, it is important the standard level is set high enough, so that rewards do not become an everyday, expected, aspect in the workplace. Forming a capable workforce is not just a onetime task, or a single effort. It is a strategy that business owners must refine and implement over time. By incorporating the above advice into your strategy for rewarding and remunerating employees, you will be a step closer to attracting and retaining the best talent and ensuring future success and growth for your business.
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