Impact Of Reward System On Employee Performance
The reward is the name of such thing that is given to an employee after recognizing his services, efforts and achievements. An organization can provide a reward to their employees in the various ways like lunch with the boss, themed team lunch, company apparel, a certificate of achievement, recognizing the services of employees before the peers, and bonuses at the end of year etc. These kinds of reward systems have a lot of positive impacts on the performance of employees. If you don’t have enough idea about the impacts of the reward system on employee performance, then you can get help from experts in assignment writing services. Some possible impacts of reward system on employee performance are given below;
1) The reward system can lower turnover
The turnover is considered an alarming situation for an organization. Due to turnover, the owner of an organization will have to take some quick and strict decisions. First of all, he will have to find the employees who are becoming a cause of turnover and then hire the best replacements to these employees. On the other hand, if you start a reward system for employees in an organization, then all the employees will show loyalty towards their duties and the chances of occurring the turnover will be lessened.
2) The reward system can increase the passion for the company
It is a fact that all employees try to work with such organization which is offering the best salaries and bonuses to their employees. They never try to work with such company which is not offering these kinds of facilities to the students. Due to their bright future in an organization, the employees try to work with passion and they show more and more loyalty.
3) The reward system can build respect between you and employees
It is a common myth in the field of business that all the employees hate with their bosses. As a boss, if you want to prove that this is just a myth and there is no reality behind it, then you will have to start a reward system for your employees. In this reward system, along with a bonus at the end of the year, you should also try to spend some time in leisure talk with your employees and try to praise them for their hardworking.
4) The reward system can increase productivity
Another important benefit of starting a reward system within an organization is that you can increase your productivity. Due to this reason, your business will become more profitable. For this reason, you should try to argue to your employees that they will get handsome bonuses at the end of the year on the basis of their performance.
5) The reward system can promote long-term motivation
When the employees observe the practical applications of the reward system within an organization, then they try to improve their performance in order to achieve these opportunities of getting rewards from their bosses. This thing is helpful for them to promote long-term motivation among the employees.
No doubt, to give rewards to the employees is a difficult decision for an organization but due to its benefits, it is an unavoidable thing for an organization to start that reward system.