5 Main Principles of the Reward System
Posted: Sat Jan 18, 2025 8:56 am
Early last decade, human resources practitioner Josh Bersin was researching employee rewards and discovered something surprising: companies that regularly express gratitude to their employees are significantly more productive than those that don't.
He found that the U.S. market for rewards programs is worth $46 billion, but most of those programs focus on retention. But his analysis found that retention-only efforts actually have little impact on a company’s operating performance. Bersin questioned whether employees would stick around for the long-term bonus that comes with years of service.
Principles of the reward system
Source: shutterstock.com
A research study by a reward systems expert has identified five key principles to consider when designing such systems:
Reward people for specific results and actions
It is important to reward people amazon data package for specific results and actions, rather than just "employee of the month." For example, reward employees for exceptional customer service in difficult situations. This approach helps to create a culture of "doing the right thing" and motivates them to achieve the company's goals.
Implement equal rewards, not top-down ones
Peer recognition is more important than many people think. Recognition from peers working together has a strong impact on employee motivation. This is because peers see each other’s daily efforts and successes. Therefore, their gratitude and recognition are more valuable than recognition from senior management, which can be perceived as a political decision.
Share stories of employee recognition
The principle is the importance of sharing stories about employee rewards. The storytelling approach is a powerful tool for promoting a rewards program. Telling stories about significant achievements and recognition of colleagues can create a positive environment and set an example for others. You can share them on the corporate blog or organize special events.
Make the reward system transparent and simple
This principle is to create a transparent and simple reward system. Modern IT programs allow employees to use a "budget" in the form of points or likes to reward colleagues for their achievements. This makes individuals visible and brings others closer to success.
Adapt programs to the company's values and goals
Last but not least, the principle of aligning reward programs with the company’s values and goals is important. Rewards and recognition should be tied to the company’s strategy, such as customer service, innovation, collaboration, or cost reduction. This helps support the achievement of the organization’s goals and strengthens its overall ethos.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
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He found that the U.S. market for rewards programs is worth $46 billion, but most of those programs focus on retention. But his analysis found that retention-only efforts actually have little impact on a company’s operating performance. Bersin questioned whether employees would stick around for the long-term bonus that comes with years of service.
Principles of the reward system
Source: shutterstock.com
A research study by a reward systems expert has identified five key principles to consider when designing such systems:
Reward people for specific results and actions
It is important to reward people amazon data package for specific results and actions, rather than just "employee of the month." For example, reward employees for exceptional customer service in difficult situations. This approach helps to create a culture of "doing the right thing" and motivates them to achieve the company's goals.
Implement equal rewards, not top-down ones
Peer recognition is more important than many people think. Recognition from peers working together has a strong impact on employee motivation. This is because peers see each other’s daily efforts and successes. Therefore, their gratitude and recognition are more valuable than recognition from senior management, which can be perceived as a political decision.
Share stories of employee recognition
The principle is the importance of sharing stories about employee rewards. The storytelling approach is a powerful tool for promoting a rewards program. Telling stories about significant achievements and recognition of colleagues can create a positive environment and set an example for others. You can share them on the corporate blog or organize special events.
Make the reward system transparent and simple
This principle is to create a transparent and simple reward system. Modern IT programs allow employees to use a "budget" in the form of points or likes to reward colleagues for their achievements. This makes individuals visible and brings others closer to success.
Adapt programs to the company's values and goals
Last but not least, the principle of aligning reward programs with the company’s values and goals is important. Rewards and recognition should be tied to the company’s strategy, such as customer service, innovation, collaboration, or cost reduction. This helps support the achievement of the organization’s goals and strengthens its overall ethos.
Increase Your Profits by 10X: 5 Key Metrics You Must Track
Alexander Kuleshov
Alexander Kuleshov
General Director of Sales Generator LLC
Read more posts on my personal blog:
After working with over 300 online projects , I can guarantee: monitor these metrics weekly and your company will not only survive, but also increase its profits by 10 times!
In the context of sanctions and crisis, knowing the ROI of your advertising decides whether your business will be successful. Tracking these 5 critical indicators is the key to your prosperity.
What you get for free:
5 Key Metrics to Increase Profits by 220%
The Secret ROI Formula: Instant Advertising Efficiency Calculator
Anti-crisis Solutions Matrix: Find the Perfect Strategy for Your Business in 15 Minutes
We have prepared all the documents and templates with formulas for you. And yes, it is FREE:
Download documents for free
Already downloaded
153319