There are 4 major criteria on which employee rewards should be evaluated. Addressing compensation, benefits, recognition and appreciation through employee rewards will help address a diverse range of HR topics. Using employee rewards to address these areas will help cut down on HR issues and keep employee productivity up. The investment in the rewards program will save your organization in the long term and help support strategic organizational goals. A comprehensive reward program should recognize both employee activity performance, and specific behaviors. Activity performance is goal oriented. Once an employee reaches a performance goal, they should receive some type of reward from the company, whether it is a gift card to their favorite restaurant, or an extra afternoon off. Behavior-based rewards are slightly more difficult to execute. When an employee exhibits a certain type of behavior desired by the organization, they should also be rewarded. This can often take the form of a "spot reward." These are smaller rewards given on the spot of desired behavior. This could be a small denomination gift card given to employees whenever appropriate. Rewards should be given for both types of behavior, in all four categories to maintain consistency and a culture of appreciate within the organization. This will improve retention rates, productivity, and morale.
For more information on creating a strategic rewards system visit this Entrepreneur.com article.
