Performance MGT & Rewards

Performance MGT & Rewards

It seems logical to reward employees when they go above and beyond the expected performance. However, while rewards can be incredibly beneficial, they are not without drawbacks. In most cases the rewards are money, but they can also take forms such as a company-sponsored outing and written praise

Rewards are beneficial because they motivate staff and enhance healthy completion. However, they can also result in adverse effects such as employee resentment. Rewards give employees the apparent reason to do their best. When rewards are performance-based, employees who receive awards may feel more motivated to work. The idea is that some employees need an extra push to be outstanding while other employees may have the talent, but they may lack the drive to utilize their abilities. Rewards create a competitive aspect that takes advantage of the human desire to win. Some prizes are awarded to those who meet the benchmarks, while others are limited to the top performers. Irrespective of the reward type, the competitive aspect derived from rewards increases desire for an employee to outperform the rest of their department. Employees who do their best but fail to qualify for rewards may become resentful. As a result, they may lose hope and become less motivated, leading to reduced performance.

Company-sponsored outings and thank you can be used to reward employees. Outings for extreme adventure experiences like kayaking, zip-lining, and rock climbing does not only reward employees but also, but it also allows them to exercise. Physical exercise develops a sense of euphoria that elevates periods of increased happiness. A well-designed thank you note can propel employees to put their all. Appreciation notes work so well because they show how much an employer appreciates the employee. However, for a thank you note to be effective, it should be generous, personal, concise, prompt, and specific.