How can employee reward systems improve staff retention rates?
The Great Resignation is the term we’ve come to associate with the rising rates of job resignation. Find out how you can improve your staff retention rate.
As more and more people leave their jobs, it’s becoming clear that staff retention needs to be prioritised – and incentives, such as reward schemes, can help. In fact, a survey conducted by the Society for Human Resource Management (SHRM) in 2018, recorded that 68% of respondents felt that reward programs positively impact staff retention.
How do reward schemes work?
Reward schemes act as a physical symbol of recognition for workers within a company. Successful reward schemes look at the wants and needs of their staff members and align the scheme with these wherever possible.
Having a reward scheme provides staff with additional incentives to do their job and is known to increase productivity and staff retention within the workplace. Once the scheme has initially been launched it’s likely to be met with excitement and gives your staff a push to work that little bit harder.
In fact, one study found that 80% of employees would consider quitting their current jobs for a job where their wellbeing was prioritised. Having a reward scheme for the purpose of promoting mental wellbeing and demonstrating gratitude to workers plays a huge role in job retention rates.
Five ways that reward schemes encourage staff retention
Here are five ways that reward schemes encourage staff retention:
- The way that people are appreciated plays a huge role in the general mood of the workplace. It influences factors like how your employees work together and treat each other both in and out of the workplace. With a strong and positive company culture, staff will be more likely to stay in their current role.
- It contributes to employee wellbeing by recognising their hard work and leaving them feeling engaged and like they matter.
- Reward schemes can help productivity massively. From healthy competition to knowing that their hard work will be appreciated, employees are more likely to produce quality work if they know employee rewards and recognition will be given to them, encouraging them to feel happier in their workplace and less likely to leave.
- It provides staff with a longer-term outlook. Instead of offering a couple of rewards throughout the year for hard work, a reward system will promote consistent work over a longer period of time and provide them with a long-term outlook.
- It helps to lower levels of stress which also reduces absenteeism. While we recognise that stress is likely to always be part of an ambitious workplace, rewards and positive reinforcement can turn the stress into a more productive stress.
Why are reward schemes so important?
The majority of companies have protocols in place when an employee isn’t hitting their targets or performing as well as management would like.
When something like a reward scheme is in place to balance this out, it can prevent a negative atmosphere from being created which would have an impact on productivity, customer service and employee turnover.
Now you know how reward schemes work, why they’re so important, and some of the ways that reward schemes can encourage staff retention, it’s time for you to create your own, using these top tips to help you along the way.
Photo by Jason Goodman