Why Should You Consider Giving Employee Awards?

By Frank Coutinho | Jul 20, 2018
Photo by: Pexels

If you do not have in place an employee award recognition program at your company, then you are missing out on benefiting from a proven strategy that can increase your employee’s productivity, performance, workplace morale, and ultimately increase your employee’s pride in their workplace which will translate into higher profits, better results, and greater customer satisfaction. Giving your employees awards is a win-win-win relationship between you, your employees, and your customers, everyone will benefit from this experience. In this article, we will discuss some of the benefits of providing your employees with awards.

 

Increased Productivity

Employee awards have been proven to translate into a healthy competition between employees which will increase their productivity as a while because individually each employee or team of employees will strive to become the top performers in their organization and will seek to earn the recognition for their efforts. As employees compete for the coveted award, productivity increases translate to higher profits for the company because they are taking less time and less money to complete their work, and they are also completing better quality work.

 

Lowers Turnover

When employee awards are being offered, employees will know that their work is valued and appreciated which will lead to them becoming more loyal to their employers and colleagues. This loyalty will translate itself into lower employee turnover, and a higher employee retention rate. If a company has a lower turnover rate, then it will require less time and money to hire and train new employees.

 

Cost-Effective Strategy

Researchers and psychologists have found that people generally respond even more to receiving recognition than receiving financial rewards or cash incentives. Of course, if you increase your employee’s wages or compensation package this can be a considerable cost to your company and can impact your bottom line. However, employee awards do not need to very large in order for them to be successful, and with a relatively inexpensive plaque, trophy, award, certification, or medal you can get a good return on your investment. Ultimately, providing employee awards is cheaper than other forms of recognition like an increased salaries or benefits packages.

 

Can Change Employee Behaviours

Employee trophies and recognition programs have been proven to change negative or unproductive employee behaviors in the work environment too. By rewarding employees for things like being an 'outstanding employee' motivates employees who do not receive the award to try to do so in the future, that way, the company’s entire workforce can start moving in the right direction cohesively as a team.

 

Improved Employee Morale

Employee award ceremonies create an opportunity for the company’s workforce to become more unified as a team in a positive social setting. Your employee recognition program should be designed around this event and can be an annual, semi-annual, or monthly event. One of the best parts of these events is that rewarding employees goes a long way toward happy employees that are more energetic and productive and affect their fellow colleagues positively in the workplace.

 

In conclusion, there are many different ways for you to hand out awards to your employees, and in almost all cases it is much more effective than monetary compensation. An employee can be very inexpensive but will bring a large return because it will increase employee retention and foster happier and more cohesive employees that will increase the productivity, profits and customer satisfaction in your company.

If you appreciated reading this news story and want to support local journalism, consider subscribing today.
Call (207) 594-4401 or join online at waldo.villagesoup.com/join.
Donate directly to keeping quality journalism alive at waldo.villagesoup.com/donate.
Comments (1)
Posted by: Kevin Riley | Jul 23, 2018 13:28

I work for a large firm that contracts IT services to DOD.

Their idea of a bonus or reward is the occasional $25 gift card.

And that is for the top performers. I'm glad I'm close to retirement.



If you wish to comment, please login.