A lot of companies, especially small ones, often find it difficult to implement an effective employee performance appraisal system. Maybe you are also one of them. Maybe you are having a hard time synchronizing the right resources, are unable to define the performance metrics, or simply do not have the money right now. Relax. It happens to the best of us. There is nothing to be embarrassed about.
But what can you do instead of skulking in the corner? Implement a reward distribution strategy. What’s that, what can you do, how do you go about it, yada yada, everything we will discuss in this blog.
Is It Really Necessary?
Imagine that you developed one of its kind AI bot that is far superior to Sophia (who is considered the most advanced AI bot right now). You launch it for public access but nobody congratulates you. Nobody covers your news and you are not awarded any credit. Will you feel frustrated?
The same thing happens when your team works hard and they don’t get anything in return. Rewards motivate people to work harder and deliver better results. Achieving targets and meeting deadlines in exchange for a reward instills a sense of victory. In fact, there are a lot of things that can seriously kill off employee motivation. Check to see if you are making one.
Total Rewards Strategies To Encourage Your Employees
The total rewards system has long-term implications when put against a solitary performance appraisal system that has a very temporary or disjointed impact. The following strategies can work great in stimulating your workforce for the long haul –
Nowadays, one of the criteria that a lot of employees look for as a deciding factor for joining a company is insurance. A company that provides coverage for workplace accidents and disabilities, worker’s compensation, life insurance, etc. are considered to be sensitive towards their employees’ safety and welfare. It is especially necessary if the work has potentially fatal risks involved.
Medical insurance is a common benefit provided by many companies even if the work is not hazardous. In many cases, health coverage is provided as a reward for good work and initiative or to employees after they reach a certain stage or complete a certain number of years with the company. A number of companies have initiated health insurance for employees after the COVID-19 pandemic.
Due to social distancing norms and financial want, many families have required all members to start working or work more jobs without being able to afford daycare or babysitting for their children. Infants and toddlers still need all-around care while children attending online schools often need help with the technology. It is only fair for companies to provide child care facilities to such families.
While providing a pension is not too common among companies, a gratuity or provident fund is usually given to employees on retirement. While this is not something that strictly inspires employees to work better, it does help attract and retain talent at the workplace. It is, after all, a form of financial security in old age and convinces employees to not leave the company.
One of the primary reasons for insecurity and resentment among employees towards companies is the absence of a paid leave. When employees do not get paid leave, they often tend to attend the office even when they feel sick. This results in the transmission of infections, ultimately impeding overall productivity. Paid leave also provides immunity against burnouts and compromise of essential personal and family needs, which boosts employee morale.
Allowing flexible work times does not reduce productivity, contrary to popular belief; it actually improves the quality as well as quantity of work. Flexible work hours allow employees to work at the time they personally feel more productive, motivated, and inspired. Also, allowing people to work from home when possible can increase the amount of time and effort an employee dedicates towards their work.
Agility Training And Benefits
Even before the pandemic hit with its full force, it was quite obvious that the buzzword of the new decade was going to be agility of the workforce. However, not every employee is equipped with the skills or resources necessary to adapt to an agile workplace, especially those of the older generations. It is the responsibility of the company to impart the necessary resources and training to their employees to help them adopt the agile working model.
A total rewards strategy does not mean doing away with performance appraisal and rewards entirely. It simply means being more conscious and inclusive in your approach. Implementing a total rewards model can have a huge impact on the morale and productivity of your employees and give them a reason to stick with your company in the long run.