There are many benefits that your company can reap once you start motivating your employees. Handing out rewards and recognition has been proven to lead to greater employee involvement and engagement. In turn, this increases retention and helps create an overall positive environment in the workplace.

A rewards and recognition program in the workplace has also been linked to a company’s increased productivity. By integrating a program like this, managers are given a tool to motivate employees to produce great work successfully.

Rewards and recognition initiatives are effective because they emphasize the positives. They send a crystal clear message to the employees that what they’re doing matters. It coaxes the team to set and reach goals daily, weekly, quarterly, or annually. By recompensing top performances and broadcasting them within the organization, workers continually become driven to do better.

What are the benefits of a rewards and recognition program?

They increase employee motivation.

With increased drive and motivation, workers stay on track while maintaining a positive attitude. A rewards system encourages collaboration and gives the team something to look forward to.

Being recognized for doing something right, people will be more motivated to do it. It becomes a pleasant loop that your team members will want to circle again and again.

Your company can show appreciation to your employees.

Sometimes, the bosses forget to appreciate the contributions of their employees. It is a grave mistake to make when you handle several people. It would be best to show your team how much you appreciate what they do. By recognizing wins and top efforts, you’re sending a message that you value what they do and that they matter to you and the company.

Employees feel seen, heard, and valued. All these point to satisfaction at work. Valued and appreciated employees are happy employees who want to continually work hard to help the company succeed.

Among your workers, you can encourage friendly competition.

An incentives program supports a friendly rivalry among workers. They will compare their performances with one another, strive to work better, and model top performers.

When one or two make it to the top, their sense of accomplishment will lure everyone on the team to aim to get there. Distinguishing successful persons increases awareness and encourages employees to give it a shot to be at the top.

You boost retention, and employees happily stay.

Valued, satisfied, and motivated employees are more likely to stay in the company. Recognition programs positively impact and welcome employee retention. Most people want to work for companies that see and appreciate them. These can be proven with the company’s tangible actions.

You improve your company’s overall productivity rates.

When teams of employees are more committed to succeeding, they become collectively more productive. They spend their time and energy more efficiently. Units control their tasks and complete them on time. The workers’ quality of work is also high to reach a goal. Recognizing them verbally or with a reward always pays off in the end.

It creates a positive and uplifting workplace where everyone is motivated to work better.

Employees become motivated when they know they are appreciated. They are not only more productive, but they’re also more positive. Positivity is contagious. It spreads all over the workplace and creates a pleasant company culture, one of the most critical components of a successful business.

Intrinsic and extrinsic motivation

Two primary types of motivation in aiming to motivate your employees are intrinsic and extrinsic. It is vital to understand the difference between these two. As an employer, you need to know how you can utilize them to make an impact on your stakeholders.

Intrinsic motivation is usually enthused by people’s experiences tied with their self-concept and personal drive. It’s the feeling you get when you engage in an innately fulfilling activity. Common examples include playing an instrument, especially if you are musically inclined. Gardening and playing a sport are also two other great examples.

Different activities will be intrinsically motivating for different people. In other words, these are activities done for the sake of doing them. In this type of motivation, the reward is the process, not the product.

On the other hand, extrinsic motivation is about working towards an end goal. This type of motivation is external to the individual. Usually, it is influenced by entities outside of the self. For an employee, it can be the organization they are working in or the work environment itself.

Drivers of extrinsic motivation include social norms, practical utility, and tangible rewards. In contrast with intrinsic motivation, extrinsic motivation has nothing to do with the individual’s preferences. It has, however, everything to do with their setting and environment.

Extrinsic motivation is easier for the boss to utilize. Intrinsic motivation leads to more creative and proficient problem-solving and better conceptual thinking. Using both will glean excellent results.

Tangible rewards as extrinsic motivators

Tangible rewards pack a lot of punch in boosting employee motivation. It can be in the form of points, credits, and vouchers that workers can redeem, exchange, or consume.

Tangible rewards are motivating because of these three factors. They are:

  • Separate from salary.
  • Aligned with wants, not needs.
  • Unexpected and usually delivered as a surprise.

Praises and Tangible Awards as Intrinsic Motivators

Without a doubt, external motivators have a crucial role in companies. However, considering the two types of motivation, the best employees are considered to be those who are also internally driven to achieve excellence. As a boss, you must tap into their intrinsic motivation.

High intrinsic motivation is associated with an array of positive results. Intrinsically motivated workers are more persistent and creative and are better problem solvers. When their internal needs are met, their creative expression, social connection, and skill mastery come easy.

Tangible rewards coupled with inherent awards are the best. They are more likely to stimulate internal motivators. Aside from points and tokens, you can also shower your team with praise and words of encouragement. A tangible award such as a certificate of merit or a medal of excellence will surely be appreciated and cherished.

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