A happy employee means happy customers, quoting the infamous Richard Branson and there is no better way to keep your employees happy than to reward them for achievements. This could be hitting monthly targets, 20 years’ service advocating loyalty or it could be an achievement award and recognition within your industry sector.
Having happy employees not only keeps customers happy but a Hay Group study revealed that in some cases engaged employees can cause companies to grow revenues by twice that of companies with lower engagement.
If your employees are happy, engaged and really care about your core values then you’ll see
• Employees going out of their way to help customers
• Less sick days & dedicated employees
• Employees skill set improving
• Customer brand loyalty increase
• Customer average transactions increasing
The list goes on, but you’ll see your company move in the direction you want it to.
Aligning Your Business Goals & Rewards
As a HR manager or business owner you want your rewards to align with your core business values. You can’t have rewards and expect them to magically drive business, there has to be strategy behind the reward system.
Pick the core areas of your business you want to improve on, be it customer service, up-selling, skill set, even sick days. Find something that’s holding your business back, that’s affecting its bottom line.
Create your rewards around the issue you’ve identified, what are the tasks and targets you need your employees to achieve in order to avoid becoming a victim of your problem again. Is there a task that has to be done every day, is it something you can measure and is it realistic for your employee to attain?
Before implementing your rewards make sure that you outline a road map for the system to work.
You’ll need to know
What training is required, is there a skills gap?
How will your employees report their targets, is there a way to automate it?
How will they be rewarded, by monetary means or a physical reward?
Is there a points system in place?
Can employees help each other?
How often will rewards be given, is it annual, weekly, monthly?
Reviewing Your Rewards
Much like anything in life, if things don’t change or it gets repetitive people will lose interest so it’s important to review your rewards structure and talk openly with your employees about their performance.
Get feedback from them to see what would make their job more engaging or what would make it easier for them to achieve their targets.
Be careful with your rewards system
Having unrealistic targets could potentially create a toxic work environment.
Employees who don’t believe they can reach the assigned targets might not participate and become stagnant, unwilling to cooperate. They may lose respect for the brand and in the long-term loyalty.
All of this might lead to higher employee turnover & disgruntled employees and customers.
Make sure your Rewards are SMART Goals, think before setting expectations, review and audit your employee rewards system regularly.