10:00 AM, 10 16, 2017

Halloween Special: The Pitfalls of Rewards

What leaves you in a clammy skinned sweat at night? If it's the horror of your employee rewards being grim, then don't fear! We give you 5 things you need to avoid like the plague if you want a successful reward strategy!

Giving only money as a reward

This is a haunting fact - many employers have a belief that compensation is the first consideration when designing an employee reward system But how can extra money ever truly stand out? Of course, we like money, but money is not everything. In fact, when only money is offered as a reward, employees start working for financial gains only without any motive for personal growth – known as an intrinsic reward. It would be much better to replace these monetary rewards with holidays, extra leave days, or a gift card that would allow them to exchange their nominal values for experiences, meals out or treats they will really remember.

Unnecessary praise

We are told to always praise, but it can be hard to strike the right balance between the ‘go-getting’ language that really does inspire, and the monotonous words which can make employees feel unappreciated instead. They say that money talks – and actions speak louder than words. Whilst it is ideal to reward and praise when it warrants it – take away the genuine feeling and it feels hollow. In the same vein, take away any hope of being recognised beyond verbal thanks and morale soon tanks!

Increasing competition

Though experts believe that workplace competition is good to boost the employees' motivation, it can be a double-edged sword. If the competition is increased to such an extent that employee only thinks of benefits and rewards and you focus on output – more calls, more widgets, more sales - then this can be dangerous for the firm's growth long term. You have to ensure that employees should not be rewarded at the expense of their colleagues who are offering a better service, and it shouldn’t be a one-horse race either.

Rewarding only a few employees

We all think there are favourites at work – the untouchables! If a business starts a system of rewarding only some employees - for example, rewarding telephone calls and sales when someone’s skills lay in quieter, analytical work, this can adversely affect a firm's internal organisation. It is not at all advisable to select only a few employees for rewarding. There are hard-working employees in every team, thus it is much better to have a reward system which is reliable and fair.

Giving below standard benefits and rewards

Some firms believe that it is not at all necessary to invest in any kind of rewards for employees. However, the companies which give only substandard rewards end up losing their employees at one time or another, especially as companies are now advertising their benefits heavily, promoting staff happiness and ensuring wellbeing is top of their agenda. If you don’t fork out now – you may well fork out later!

Remember, a bad or unorganised reward system can actually result in giving away your good employees. If you'd like to reward and recognise, incentivise or thank, a Gift Card or eCode is the ideal way to do so. SVM Global is the leading provider of gift cards for business, offering businesses of all sizes the ability to purchase gift cards and digital eCodes in bulk. Choose from 100's of retailers, and order speaking to a friendly advisor. To find out more, browse our portfolio here!

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