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Employer's Choice Solutions
Joni Prose
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Do You Make These Mistakes When Rewarding Employees?


Many companies still suffer from issues of turnover and burnout, even when they have a reward system in place. What goes wrong with employee rewards, and how can you realize a greater return on your reward program investment?

Here are some common mistakes companies make with rewarding employees, and ways to turn a failing employee rewards program into a success.

Not offering what employees really want

Money is a common employee reward, but when your employees are already paid a competitive salary, offering more money is not always the best motivator.

In fact, some of the most effective employee rewards are those that promote a healthier work-life balance, such as flexible scheduling, part-time telecommuting options and opportunities to take a few paid hours off during a workday. Gift cards, and simply saying thank you, can also be effective.

To improve your employee rewards program, find out what your employees really want by asking them. You can do this on an informal basis, or create a quick survey with several options for employees to choose from.

Not being sincere or believable

While even simple rewards programs, such as expressing your gratitude for a job well done can help to improve employee satisfaction and productivity, no employee rewards are effective if your employees believe you don’t truly appreciate their efforts.

It’s easy to give the impression that your rewards program is only there to placate employees so they’ll keep working.

Make sure your managers are genuine in delivering employee rewards, whether it’s sending thank-you cards, or organizing office-wide appreciation lunches.

Be specific in praising employees, instead of offering a generic “thanks for your hard work,” so they understand what they’re doing right—and can continue to perform well.

Not having an organized strategy

Once you’re offering employees the type of rewards they want in a sincere, authentic manner, the key to a successful employee rewards program is consistency. If employees understand that certain behaviors and performance goals are rewarded, but see that not everyone receives the rewards every time the requirements are met, the program will fall apart.

Create a strategy for implementing employee rewards, and make sure all members of your management team are on board and consistently applying the strategy for every employee. In this way, you’ll see long-term success and a positive ROI for your employee rewards program.

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Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
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