Should You Reward Employees?

Collaborative post – may contain affiliate links

We pay our employees to do a job. They are employed and given a wage and stable employment, on the condition that they do that job. It seems simple. Yet, many of us wonder about the prospect of employee rewards. Some feel that they shouldn’t have to reward their employees for merely doing their job. They are getting paid to do it, and that should be reward enough. Other people see the benefits of initiating an employee reward scheme and feel that it often leads to staff doing much more than their basic job. Here are some of the advantages of rewarding your team for their hard work.

They’ll go Above and Beyond

You pay your staff to do a job, and they do it. But, the very best staff do much more than that. They go the extra mile. They provide exceptional customer service. They make great suggestions. They care about your business, and they give their all. Incentives are a fantastic way to promote and encourage this. If you want them to do more than simply meeting the requirements of their job description, then you could offer more than their salary.

Increased Productivity

A fantastic way to utilize an incentive scheme is with competition. You don’t want your staff to turn against each other, so a small incentive like custom gift cards or an extra-long break are perfect. Run contests, give your staff challenges and reward them when they win. This will get them working faster, increase overall productivity, boost morale and improve team spirit.

Loyalty

Staff turnover is very high in many companies around the globe. This is terrible for business. Your team will never get the chance to build relationships, they’ll never receive enough training and experience to be excellent at their job, and they’ll never build relationships with customers. Offering small rewards, bonuses or incentives can hugely increase staff loyalty. They’ll want to stick with you for longer because they feel valued and appreciated.

You’ll Save Money

This decreased staff turnover can save you an awful lot of money. Sure, you might be spending a little on the incentives on offer, but did you know that the average cost of turnover for one employee is between 150 and 250% of an annual salary? Keep your staff, spend more time and money on them, and you could save a fortune.  

You’ll Build Relationships and Respect

Running a business isn’t all about numbers, sales, and customers. The very best managers and business owners know how to manage people. They understand that it’s their staff that make their businesses work and that a good team can be the difference between making it big and going bust. To have that great team you need to build relationships. You need to understand them, and to trust them. But, you also need their respect. Many managers try to be too friendly with their team, and lines get blurred. Respect is lost, and the company suffers. Incentives and rewards give you a great way to start building the right kind of relationships with your staff. They’ll want to work for you, but they’ll know who is in charge.

At the end of the day, it’s up to you. No one can tell you that you should reward your staff, but it can have some fantastic results.

The 1 Question Managers Need To Ask

Managing people isn’t for everyone, but if taken seriously one question will give you all the answers you need to maximize productivity:

How can I best support you?

Here’s why: support isn’t defined by the giver, but the recipient.

I asked this question in my previous management role and it did wonders for morale, engagement and performance.

The best workers are self-motivated. As a professional if you need to be externally motivated to do your job, even the greatest perks/benefits won’t make a huge difference.

Once hired in a role (assuming you’re qualified), you need to be trained with the skills to do the job, but when that on-boarding process is complete it’s your turn to soar.

As a manager you don’t need to be smarter than the team you lead. In fact, if you facilitate and support well technical skills are just a bonus.

Support is something you feel. When you are being supported you know it. If you have to think about it, it’s absent.

Your job as a manager is to help your teammates shine. At a deeper level it’s making them look better than you. If there’s too much ego involved as a manager, you’re destined to be in competition with your team rather than holding hands across the finish line.

There’s a simple way to gauge if the workers under your care feel supported: ask them.

Be specific. Ask this: on a scale of 1 – 10, 1 being not at all vs. 10 feeling like a champion rate the amount of support you feel?

In a performance-based world, this approach may sound soft, but that’s exactly why it works.

A manager’s job isn’t to tell their team how to do something, it’s to clarify objectives and remove all the obstacles in their way.

Going back to my “best workers” example, when giving support you also offer respect, care and autonomy. Think about the best boss you’ve had. I highly doubt they rode you like a horse. Instead I guarantee you’ll describe your relationship with them (soft skills).

Management isn’t easy, but it’s also not rocket science. Take the servant leadership approach to managing others and you’ll be amazed at how people’s strengths will rise to the top.