With 75% of South African employers reporting difficulty in finding the talent they need, organisations are looking at more innovative ways of attracting people, motivating employees, improving performance, and driving specific behaviours. One of the most effective ways of achieving this is through rewards and recognition programmes. When done right, these programmes can also improve employee engagement, reduce staff turnover, and improve morale. It can also serve as a powerful tool to attract top talent.
In industries such as construction and healthcare, rewards and recognition programmes are also used to reduce accidents and promote safety practices, contributing to a safer and healthier work environment. Fundamentally, rewards and recognition programmes create a direct link between employee actions and company objectives, leading to improved performance and greater business success. For consumer-facing businesses, rewards and recognition programmes can help attract customers, increase purchase frequency and average basket values, and enhance the customer experience. There are several things decision-makers need to consider when designing these programmes.
Internally, Gallup has found that those businesses with well-designed rewards and recognition programmes can improve employee engagement by 30%. In turn, this drives higher productivity and better individual performance. Furthermore, Gallup’s data suggests that engaged employees are 59% less likely to leave their jobs, reducing the costs associated with recruitment and training. These statistics are backed up by the South African Labour Market & Employment (LME). Its research shows that effective rewards and recognition programmes can reduce employee turnover by up to 15%.
Going beyond retention, the South African Reward Association (SARA) has found that companies implementing rewards and recognition programmes reported up to a 20% increase in employee productivity. These programmes are designed to align employees’ goals with company objectives, leading to more focused and efficient work.
Something for everyone
These programmes are widely used across industry sectors. In sales and retail businesses, rewards and recognition programmes can motivate employees to meet sales targets and improve customer service. For financial services providers, such programmes can help drive cross-sell opportunities, deepen customer engagement, and improve service delivery. Healthcare providers can improve patient outcomes and promote adherence to treatment protocols.
Of course, each industry has different objectives. However, the golden thread is that rewards and recognition programmes can help align employee actions with business goals. For instance, in the South African construction industry, safety-focused incentive programmes have reduced workplace accidents by 25%.
Elements of a successful programme
There are three key elements that companies must consider when designing their rewards and recognition programmes.
- Firstly, they need to clearly measure its success or objectives. A programme must have well-defined goals. This can range from improving performance to boosting sales or promoting safety. Employees need to understand the objectives clearly to be motivated to meet them.
- Secondly, programmes must have incentives that are meaningful to the participants. Whether it is financial rewards, recognition, or other benefits, the rewards must motivate people to take action.
- Finally, effective communication is a must for any good incentive programme. Employees must understand how the programme works, what they can earn, and how their progress will be tracked. Without clear communication, even the best-designed programmes will fail to engage employees effectively.
For businesses, providing employees with rewards, these programmes are strategic tools that align employee actions with business goals, motivate performance, and drive retention.
By implementing a well-structured rewards and recognition programme with clear objectives, meaningful rewards, and the right technological infrastructure, companies can unlock higher levels of engagement, improve productivity, and achieve long-term business success.