Hi there!

Welcome to another Productivity Wednesday.

We will be continuing with the conversation on ‘reward in workplace’. We previously discussed the concept of giving rewards in the workplace and the general principle behind it. This week, I would like to share with you the advantages and disadvantages that may arise from giving reward in the workplace.

Employee reward has been proven to improve organisational values, enhance team efforts, increase customer satisfaction, and motivate certain behaviours amongst members of staff. Some of the advantages of reward in the workplace are.

  • Increased Productivity: believe me when I tell you that rewarding people for the good work they are doing, only makes them want to be better. Sometimes, it is not the reward that is motivating most of the time but the fact that their hard work is being acknowledged.
  • Loyal Employees: when employees feel they are appreciated and recognized for what they do, they develop a sense of loyalty towards their employer or company and may even recommend open positions to their contact
  • Creates a culture of friendly competition within the workplace: a strong team will love being able to challenge each other while having the ability to receive rewards for their efforts. Competition is motivating, and leaders may notice the hard work their team puts in to come out on top.
  • Accountability: in cases of team-based rewards, where a team must reach specific targets to get a reward, this creates a heightened sense of accountability. Teammates hold each other accountable so they can succeed together, and individuals hold themselves accountable, so they don’t let their team down. Accountability in the workplace typically equates to fewer errors, which is a major benefit for businesses.

Disadvantages of reward in workplace

It is a common knowledge that no matter how good a thing is, it has its disadvantages. Just like having too many sweet things can hurt your tummy, giving rewards in workplace, if proper care is not taken could backfire thereby defeating the purpose of the reward.

  • Employee Resentment: Employees who do their best and still don’t qualify for incentives may become resentful of the star performers. Some workers find the rewards a disincentive. When they see they can’t compete, they give up, and their performance suffers.
  • Increased Competition: this can easily swing both ways if not properly monitored. Creating a healthy competitive environment is the goal and not toxic competitive spirits. In the bid to get rewarded, teammates may begin to engage in competitive rivalry that could cost the company financially or result in loss of clients.
  • Creating Expectation: giving employers gift may result to them developing an expectative spirit, especially when the reward is given at a particular time of the year. When employers tend to expect gifts, the potential motivation behind the reward is lost as employers begin to feel it is a regular part of their compensation package and not additional bonus offered as a form of motivation.
  • Motivation Issues: if rewards given are performance-based, employees who did not receive a gift may feel less motivated to work, as their work quality was judged to not be good enough; this effect can be made worse if an employee previously thought that he was doing a good job. Likewise, if the gifts are given only at certain times of the year, the employees may feel that the only time that their performance matters is just before the gifts are given.

In conclusion, it is important that we recognise our performing employees by putting a reward system in place, however it is more important we do not overdo it and ensure proper management to avoid it from going left. Establishing a reward system is only effective if it is properly managed.

Until I come your way again, stay safe, work smart and not just hard.



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