The tradition of offering financial incentives for employees has come under question, with many believing that this strategy is now outdated. So what are employees really looking for, and will companies need to adapt to meet the needs of a diverse workplace?
Research carried out by Direct 365, a leading provider in facilities management services and business products, revealed that nearly 60% of UK workers do not look at job perks and benefits when looking for a role. This may appear to be a clear cut conclusion that rewards are redundant however, the disparity lies within the generation of your workforce. 70% of Generation X participants take benefits into consideration compared to just 40% of Millennials. The clash of wants from potential and current employees poses a challenge that cannot be solved through one simple formula.
Why implement a rewards system?
It may seem easier to remove company benefit schemes if employees are not satisfied, not interested or there are many conflicting demands. However, businesses could lose out on even more if they were to not implement a benefits package. Sage, a market leader for accounting, payroll and payment systems detailed how an employee recognition scheme can in fact benefit a business just as much, if not more so than their employees.
Businesses that offer company recognition schemes have not only owed employee attraction and retention to it, but nearly half of managers surveyed said that there was no additional cost to the business either.
It is evident that organisations should have a benefits system in place, if they do not already. The question that still remains however is how to satisfy the conflicting rewards staff look for from their employers.
How to reward your employees
Company perks are great to hook candidates but you need to think about your existing staff too.
Once your staff are employed, the benefits are not as important and it's their rewards for hitting targets that should be addressed.
Monetary and materialistic rewards are not enough for long term motivation of employees, nor does it aid retention according Alfie Kohn at Harvard Business Review. The Institute of Leadership & Management also found that people look for new roles due to lack of progression; feeling underappreciated and issues with management. But HR magazine states the main reason for people leaving roles is money. This conflict of wants means that businesses cannot provide a single solution. Benefits can only provide so much, but it's the human approach that appears to be lacking and is what employees are searching for.
The pick n mix reward system
A customisable approach to a benefit scheme can help businesses. Offer a mix of physical incentives and emotional sentiments that can be adjusted for different tasks drivers and employee needs.
- Recognise and award long-term loyalty
- Regular acknowledgement and praise for an employee's hard work and ethic
- Set clear career plans and mentoring
- Create a training and development programme
- Flexible working
- Income protection
- Childcare support
- Clear targets to hit for salary increase
- Quarterly days out for teams
Are you sold by a non financial incentive?
Whether you think that your reward system needs reviewing or you're happy with the way you praise your employees hard work, our consultants can help you to increase your attraction and retention rates, making you an employer of choice and one that drives stronger profit, productivity and workforce. Contact your local branch today for more information.