Employee Rewards That Won't Break the Bank

One of the biggest challenges faced by today's managers is figuring out how to give employees the recognition they need and deserve without breaking the bank. It is especially hard in this current economic climate, people are being made redundant and there is no money left to reward or recognise the people who remain.

The good news for managers is that the most valuable employee rewards are often the ones that have little or no monetary value.

In order to make good decisions about employee rewards, managers first need to look at the characteristics of their workforce and spend time thinking about what is likely to be rewarding to individual employees. While there are some commonalities among employees, individuals may respond differently to various types of rewards.

Reward Versus Punishment
Realise that what is rewarding to one employee might actually be viewed as a punishment to another. This is one of the reasons that it's important to customise some types of rewards based on the employees' personality types.

For example, an employee who enjoys being personally recognsed by his or her supervisor might be pleased if the boss invites him or her to lunch. For another employee, spending his or her lunch hour with the boss might be viewed as an imposition on personal time.

Great managers know that they have to treat employees fairly and consistently, yet must also make accommodations for individual differences and preferences. When it comes to finding affordable ways to reward employees, it's a good idea to keep several ideas in your "bag of tricks" so you can pick the most appropriate incentive for each situation that arises.

Affordable Employee Reward Options
Remember that the intrinsic value of employee rewards programs lies with the recognition that employees get for being singled out for doing a great job. The following suggestions are inexpensive ways to help your employees "feel like a million bucks" when they exceed expectations.

Peer Recognition Award
Start an awards program in which co-workers can nominate each other for going above and beyond the call of duty. Give the program a catchy title and create a nomination form that employees can access easily. Don't have a set award schedule; instead give awards as frequently or as rarely as they are deserved. Such programs are designed to reward employees for exhibiting exceptional behavior, even when the boss isn't watching.

Announce winners in an open forum, such as a staff meeting, and give the recipient a certificate or plaque as well as something with a minor monetary value, such as a gift certificate to a local restaurant or a nice shirt with the company's logo. Employees receive public recognition and a lasting reminder of their achievement.

Letter of Commendation
Another excellent way that managers can reward employees for doing a great job is to write a letter of commendation that goes to the employee and is also sent to upper management within the organisation. This type of employee reward doesn't cost anything other than a few pieces of paper and an investment of time on the part of the supervisor. When utilising this strategy, it's important to show who the letter is being sent to on the employee's copy.

When you give an employee a formal letter of commendation in this manner, you are acknowledging outstanding performance in a formal way. Additionally, this type of reward sends employees the message that upper management is interested in knowing about his or her accomplishments.

Employees tend to respond very favorably to praise from executive-level managers. They certainly are not likely to feel that their supervisors try to take personal credit for their work. Instead, they will be likely to view their supervisors as allies in their career aspirations. This strategy is particularly motivational for those employees who inspire to move up in the ranks.

Express Appreciation
All too often, the employees who are consistently strong performers don't get attention from their managers unless they ask for it or something goes wrong. Managers have a tendency to expect consistent stellar performances from their best employees, and don't always take the time to thank them for continuing to excel at their jobs.

Good employees who see problem employees getting more attention than they do may come to feel taken for granted over time. Employees who feel underappreciated are likely to become dissatisfied and begin to seek alternative employment. This can be prevented if managers will simply take the time thank their consistent high performers. Saying "thank you" may seem minor to a manager, but can be a very valuable reward to employees.

Facts About Employee Rewards
By providing positive feedback to valuable employees, you are taking positive steps toward making sure that your employees know that they are appreciated and that they are an important part of your organisation. Don't let yourself focus so much on dealing with employee problems that you forget to recognise those low-maintenance employees who always do what they are supposed to do.

Employee rewards programs can help retain the most treasured employees. Human beings have a basic need to be recognized for a job well done, and managers have a responsibility to meet this need. As a manager, it's important to keep in mind that rewarding good employees is an essential function of the job.

When you implement peer recognition programs and initiate formal letters of commendation for your employees, you are creating a work environment in which people know their outstanding actions can be recognised publicly at any given point in time.

Additionally, when you make a point of simply expressing appreciation for positive performances, employees know that their consistent efforts are appreciated. All of these non-monetary rewards can have a positive effect on employee job satisfaction, productivity, and retention of key personnel.