Benefits of Reward Management System to the organization

 

When refer the rewards of the organization there can be identify short term benefits and long-term benefits.

Short term Benefits of the Reward System

·       Increase productivity

Rewards increase the motivation level of the employees and they do their job effectively and efficiently. This will lead to an increase in the productivity of the organizational final output. Otherwise, most of the rewards are based on the performance of the employees so productivity automatically increased.

·       Increase the level of job satisfaction of the employees

Recognizing an employee's efforts demonstrates that the work they're doing is effective to the business. It sends the message that their diligence is worth rewarding and thus must be important. This, in turn, makes the individual feel that they're making a difference. When considering this organization offers the right reward to correct employee supported their performance.

·       Make employee Happiness

Cheerful and fulfilled employees are often motivated to perform better due to the positive feeling they need towards the corporate.  If an employer treats its staff with respect and gratitude, then those staff members will want to try an honest job reciprocally. This positivity also can be felt across the business, creating a cheerful working environment that folks will want to be a neighborhood of.

·       Develop the team culture of the organization among employees

Rewards that incorporate peer-to-peer recommendations are great for solidarity, as they encourage staff to ascertain the positive attributes in each other. Teams are well-placed to try to this, as they work alongside one another a day. Plus, allowing colleagues to nominate each other for rewards is empowering, because it demonstrates that they value each other’s opinion. This attitude is extremely good to the organization and consistent with the case.

Long term Benefits of the Reward System

·       Reduce retention rate

A high staff turnover results in poor morale which will make others want to seem elsewhere. The time required to find and train new staff affects utilization and therefore the fiscal costs are high, so retaining staff has got to be a priority. The supply of rewards gives employees a tangible reason to remain. Some organizations offer lifestyle benefits also. Those are healthcare, employee assistance, Family support, dental care. Because of these supports, more problems of the employee's solved and it will lead to low level of retention.  Here another benefit is the cost of employee retention and hiring, recruiting is reduced because of the results of these benefits. It is very important to the organization. This is a huge money saving to the organization.

 

·       Develop loyalty employees to the organization

Your employees are engaged together with your business, they're going to be ready to promote and sell your brand much better than someone who doesn't believe or care about it. Rewarding diligence generates loyalty and helps your team to feel an emotional bond together with your organization. This is often a serious future benefit to the organization.

·       Develop good Company culture within the organization

Company culture is a major part of the brand of the company so culture is very important. Once the company offer the best rewards to the employees they become satisfied employees and it will lead to creating a good environment and good culture within the organization. This good company culture makes free mindset of the employees to work and this will lead to increase customers also.

·       Make talented and valuable employees to the organization

This company has a reward system which is mainly based on the performance of the employees. Superior performance deserves a superior reward. So, it is a reason to prepare talented employees for the organization.    


Reference 

Brown, L. (2021). Defined: Employee Rewards and Recognition | BerniePortal. [online] blog.bernieportal.com. Available at: https://blog.bernieportal.com/the-difference-between-reward-and-recognition.

 

 

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