Best Ways To Reward Employees

The success of an organization depends on the employees it has. Top employees are hard to find and expensive to hire. Organizations are therefore keen on keeping the acquired top talent. If employees are not properly motivated in an organization, they move to competition. This is undesirable because as top employees leave the organization, performance shrinks. A comprehensive employee reward policy if introduced can limit the effects of employee turnover to manageable levels. To nurture loyalty, top performing employees are for instance, given service certificates, salary increments or cash bonus payouts for exemplary performance observed over a certain period or while executing a certain task. A reward policy can only be effective if deserving employees are correctly recognized for their contribution. In addition, identifying the kind of contribution required for recognition and its corresponding type of reward is paramount. It is commonplace for organizations to adopt a five level rating system to distinguish employee performance notably from 1 to 5 to denote; Unacceptable performance (1), Meets some expectations (2), Meets expectations (3), Exceeds performance expectations (4) and Exceptional performance (5). A token of appreciation is given to employees whose rating is a 4 or 5 for that period.

There are two kinds of rewards namely, monetary or non-monetary. Line managers carefully select suitable rewards for the teams and present their ideas to management for approval.

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