A motivated workforce is key to a successful organisation. Having a motivated workforce ensures increased productivity. A workplace with a culture of better rewards and recognition always has engaged, and innovative employees contributing positively to a company's bottom line. People deprived of rewards and recognition feel disconnected and demotivated at the workplace. Lack of rewards, recognition or a culture of appreciation are the most common reasons for employee demotivation.
Sensing the importance of rewards and recognition, companies have enhanced their focus to rewards and recognition culture. It has been observed that effective use of rewards and recognition have helped organisations reap the benefits to a positive work environment and increase employee satisfaction. They can also help to boost morale and encourage employees to work harder and achieve better results.
Compensation is not the most significant rewards and recognition
Compensation is one of the three most important aspects of retaining talent under rewards and recognition culture, says Lakshmanan M, CHRO, L&T Technology Services. Besides compensation, challenging work and a good manager also come under rewards and recognition culture and are vital in retaining the talent.
Align rewards and recognition with organisation values and business goals
Prakhar Tripathi Partner, Human Capital Consulting, Deloitte India, says that HR leaders are not only custodians of the rewards and recognition. It should be owned and communicated by the top management to make realise the significance of the rewards and recognition. He also suggests aligning rewards and recognition to both organisation values and business goals. He also emphasises that recognition should be available to everyone through formal and informal channels.
Rewards beyond compensation
Organisations mostly focus on compensation while designing the rewards program. For Shipra Gairola, Head- Human Resources, Shardul Amarchand Mangaldas & Co, it is equally important to focus on workplace experience. For her, growth opportunities, work-life balance, and psychological safety are other prominent aspects of the rewards and recognition culture that employees look for.