Optimize Rewards and Recognition
Don't revamp – refine! Make minor tweaks for a major employee engagement impact.
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- Organizations want to diversify their employee engagement and retention strategies. Most acknowledge the importance of an effective rewards and recognition program, yet most programs are ineffective.
- Traditional rewards are becoming more costly and less motivating, but organizations continue to use them because many managers haven't been convinced otherwise.
- An effective program provides rewards and recognition in a way the recipient wants to receive it, not the way the sender wants to send it. Individualizing rewards and recognition while administering them to a large group of employees is difficult, takes time, and can be costly.
- As an HR professional, you are not expected to be an expert in what motivates and engages every single person, and neither are managers. However, there are some rules of thumb that you can follow and some levers that can be pulled that will have a major impact on employee engagement.
- Increased satisfaction with an organization's rewards and recognition program directly and positively impacts employee engagement.
- The psychology of motivation is changing – monetary rewards are becoming outdated, ineffective, and expensive. Today, recognition is the priority when it comes to effectively motivating your employees.
- Over 65% of employees want their organization's rewards and recognition programs to be more aligned with organizational goals and values, and over 60% want to be rewarded in a more timely fashion.
- Nearly 70% of employees want rewards to be more individualized to the person receiving them because most rewards given today are off-the-shelf.
- Revamping a rewards and recognition program is onerous. Almost all organizations have some sort of program already in place, so leverage these current programs by making some minor tweaks.
Impact and Result
- Increases return to shareholders
- Boosts employee performance
- Improves retention and motivates staff
- McLean & Company conducted in-depth interviews with HR professionals, subject matter experts, employees and managers to learn about rewards and recognition programs at different organizations.
- McLean & Company fielded a survey directed at managers and employees to better understand their preferences on a variety of factors that influence a successful rewards and recognition program. The survey attracted over 100 respondents.
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Get to Action
Tweak your organization's current rewards and recognition program
Improve employee engagement and drive business results.
Individualize rewards and ask for employee feedback
Provide meaningful and appropriate rewards and recognition.
Craft a Compensation Philosophy
Create a Job Worth Hierarchy Based on Internal Worth
Design a Base Pay Structure
Conduct an Annual Salary Assessment
Create a Culture of Recognition to Drive Engagement, Improve Retention, and Increase Profitability
Use Flexible Work Arrangements and Time Off to Attract and Retain Top Talent
Develop a Strong EVP to Attract Top Talent
Write Effective Job Descriptions
Optimize the Employee Wellbeing Program
Create a Variable Compensation Plan
Train Managers on Compensation Philosophy & Effective Pay Communication
Evolve Pay for Performance