Commonly, we hear people speak about the employee-employer relationship and how it affects the job. But, the less spoken fact is the employee relationship with the workplace, with the colleagues, with the job itself, and so on. A professional relationship does not just stop with the employee being compensated on monetary terms for the work and contributions they put on the table for the company to achieve its objective. The workplace environment and how the employee is treated for his contributions must determine the employee ‘s future, which directly impacts the future of the company business.
In short, an employee expects more than money from the job they are compensated this, which is recognized for his talents and skills, as an employee reward. Salary day would be the happiest day in a month for any employee. But, a company’s success depends on how the employee stays happy and motivated for the rest of the days. A solution for this would be a systematic approach towards this need of recognition for employees through a reward-based system, thereby pointing out the exclusive efforts put in by an employee for the organization.
What is a reward points-based system?
The reward points-based system provides a regular point for each and employee for their work in the organization. Through the data collected using this, it could be evident for the organization to establish and scrutinize the talents within the organization to plan the course of action accordingly. It also helps to recognize where and with whom the focus is required. This could encompass various factors, including completion of tasks on before the deadline, new initiatives taken up, leadership traits shown in the workplace, quality of the work done, etc.
How does a rewards points-based system work?
The reward points are updated based on the employee’s performance. The employees are allocated separate accounts with which incentives are provided in reward points credited annually or periodically based on individual review meetings. They could use these points to redeem them for different purposes like – Shopping, entertainment, travel, dining, debit card/credit card/gift coupons, memberships for health/charity clubs, and so on, based on their interests.
Impact and importance of a reward points based recognition system
1. Boosts the morale of the employee
First and foremost, the primary reason for this approach as an employee reward is to boost morale and motivate employees. By bringing in such an approach, the employee is motivated to keep working more and make more fruitful efforts for the role. In short, by boosting an employee\’s morale, there would be a substantial increase in productivity. More than being an employee that deserves appreciation and recognition for the work done, it is the deserved appreciation that we give to a fellow human being for the efforts and strains taken by them.
2. Appeals to new candidates
With the help of this systematic approach of recognizing employees in your business, it not just brings about a drastic impact within the workplace; but also serves as an appealing factor to the future employees applying for jobs. An intact employee reward points-based system paves the way for instilling confidence and trust in the new candidates in the beginning stage of their careers and expect to make it big in the organization. Who would not want a job that provides an engaging role with appropriate recognition for the work done?
3. Influences the retention rate of employees
A reward point-based system also influences the retention rate of employees in your organization. Statistics, based on systematic research, points out the fact that almost 65% of employees provided with the required recognition for their efforts are less likely to look out for another job, 40% of employees would put in more energy for their work when the due appraisal is given for their performance, and so on. 60% of the employees are subjected to maintaining company loyalty. This concludes that the employees are less likely to quit a job for another job that recognizes their talents and skills.
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4. Helps to keep the employees in good health
Stress is almost present in every job that any person does, even if it is the person who is highly determined and passionate about it. The physical and mental health of the person likely takes a toll on the amount of energy that a job demands. So, such a reward points-based system presents an outlook that the company takes care of the employee. It serves as a feel-good opportunity for the employee in the organization. An organization that caters to the well-being of the employees is very important because they determine the success or failure of the business.
5. Promotes the relationship within the business
Without better relationships, the conflicts that arise within the workplace would be an arduous task to handle for the management. A conflict-free work environment with happy employees sounds like something that every organization wants, right? This rewards system provides a positive work environment. It promotes positive work relationships, thereby keeping the work levels at optimum and increasing productivity with an impact on the business\’s profit margins. A single person does not run an organization, and it involves the strenuous efforts of various teams, groups, and individuals working towards the same objective.
As the saying goes, employees of a company are the first customers of the company. A happy employee indicates happy customers for the company. On that note, understanding an employee’s needs is as crucial as understanding the customer’s needs and designing products services based on that. What more do you want to wait for, when you could make use of LoyaltyXpert for all solutions of reward points system of recognition, for your business!! Therefore, a points-based recognition system as an employee reward is in every way a necessity for any business, be it large scale or small scale.