Most managers of many organizations would agree to this statement and to the fact that motivated employees are more productive in the work that they do. They are crucial for the success of any organization. No matter what the size of the company is, or the industry of which it is a part of or its corporate strategy, a company/organization will do well if the employees are happy. Now, the question that arises is how to motivate the employees to bring out their best performance?
Incentives And Rewards
Incentive-based rewards are known as the schemes that are used to promote some specific kind of actions. They are provided to a particular group of the organization or sometimes a person in particular. It is generally used to manage a business that motivates the employees of a company or an organization. Especially in the case of sales, it attracts the customer to a service. The incentive-based rewards increase the performance of an employee at an overall layer. The employers, in most of the companies, tend to accept the incentives that are provided by the company, but there are only 27% of the companies in the world have hit the scheme in the right place. These kinds of schemes often reduce the turnover of a company, but on the other hand, it also encourages the employees to increase the morale and loyalty towards the company. It also increases the daily performance and the retention of an employee.
An incentive is a bonus or a reward that invokes feelings of encouragement and motivation. There have been so many studies proving the fact that incentive-based rewards have a positive impact on the employees of an organization, resulting in the increment of the satisfaction they derive from their work and leads them to be more committed and having faith in the management.
The ownership in the companies should be encouraged more than the incentives which motivate the employees on a long-term basis. The engagement within a company should be sustainable. The companies should also note that providing the employees with recognition instead of just an incentive is a very crucial part of the scheme. The incentives and recognition put together to stimulate an output that is greater than any kind of investment. Defining the incentives as something which encourages the employees to perform better for the company should be the target. The type of incentive that is provided to the employees also matters a lot. The management should always recognize what a team or an individual in the company wants and then accordingly incentivize them.
The rewards that are given to the employees should not be promised in advance. The companies should provide rewards for the employees at times, which is unexpected because of which the employees working in the companies don’t change their intentions, and they thus focus on the rewards mainly. Also, the rewards given to the employees should be anticipated to be small. The companies should also reward their employees regularly instead of rewarding them only once and should also create an opportunity for the employees more frequently. The rewards which are provided in the companies should be public and not privately.
Everyone working for the company should be made aware of the incentive-based rewards, and the reason for the rewards being provided should also be made public. The companies or the management should reward the behavior of the employees of the companies too, along with the outcomes which are generated by them. The results generated may sometimes be through a shortcut, but the behavior of an employee is only about the efforts and hard work that is being put into the work. The peers of the companies, which are also known as the managers of the companies, should also be rewarded regularly instead of the subordinates.
Transparency In The System
To make the employees work more efficiently, the incentives provided to them should be transparent and should be related directly to the achievement of the employee. Considering the emotional impact of the incentive offered to the employee while rewarding them should also be a significant priority in the process. Though the financial incentives offered to the employee is a viral strategy in the age. Still, people, in reality, want to feel more aligned and understand the purpose of the organization and the meaning of their work.
There are a lot of factors that create an impact on the culture existing in the organization, which requires a detailed study for the development of the organization as well as the achievement of sharing of knowledge. All these factors include the trust existing between the fellow workers and managers, the communication process between the staff members, systems of information, rewards given to the workers as a method of recognition of their work as well as the structure of the organization take active part in explaining the relationships existing between staff and in return providing opportunities to break hurdles to the process of sharing knowledge.
Corporate Social Responsibility
The first and foremost benefit of corporate social responsibility activities is that the employees will feel proud of the organization that they are working in. If an employee has a positive attitude towards a company, then employee retention will increase. Employee satisfaction is related to both retention and productivity in the company. It will also improve the number of people applying for the job vacancies in a company, which means the company will be able to choose the best among a talented pool of candidates. If the human resources team has a lot of choices, then they can come up with a better workforce, and this is the result of the high positive impact of the corporate social responsibility aspect of a company. It impacts the well being of the employee and motivates everyone in participating in the corporate social responsibility project, making it more significant.
The corporate social responsibility programs, incentives, rewards, and so on can be done within the budget. The companies can reduce the monetary investment by hiring efficient employees and retaining talented employees so that the recruitment cycle does not happen again. The potential risks and liabilities can be managed more effectively, and the proper energy-saving program can be implemented with less investment made in traditional advertising. With a stable workforce, adequate funding, and a loyal customer base, a company will be able to sustain the market position without many efforts.