There is ample evidence to show employee rewards motivate employees to perform better. From our survey in more than 250 small – large companies in the India, we found how Employers try to pinch their wallet by buying employee rewards via meal coupons / products in bulk and give all their top performers the same televisions, tablet etc. But HR forget on how many TVs does one need?
Here are some of the myths that, we at BigPerx found about the present reward program of purchasing products in bulk may not be as successful as one might think.
Myth 1. One Size Fits All
Buying Rewards in bulk is preferred by organizations, as it makes it easier to procure the items. The current employee reward model tends to give employees in the same position and grade the same reward. This can be De-motivating for those employees who have worked hard to meet their Key Result Areas. Such employees will feel their efforts are not appreciated by the organization since their peers, who didn’t meet their goals, also received the same reward.
Myth 2. Employee Reward programs are easy for HR team.
HR teams always aim to figure out what motivates each individual and some even try to customize their employee reward program to the nth degree for each individual. Since it’s near impossible for HR to achieve, for implementation of rewards programs aren’t the only functions, HR negotiate for few selected vendors to buy products in bulk. But the employee do not value or use one of the bulk products they have rewarded.
Myth 3. Annual rewards improve morale.
The current offline rewards usually rely on a single bulk purchase of rewards like coupon or products at the one go. However, a strong performing employee who has been exceeding goals throughout the year, has to wait for HR evaluation at the end of the year. Employees prefer many small rewards that show appreciation over an annual programs as they have to wait for their performance appraisals. The moment an employee feels that he or she was not been recognized for their hard work, they will start looking for another job. Thus, the current employee rewards system doesn’t guarantee employees will opt for long-term association with the organization.
Myth 4. Purchasing Rewards in Bulk is a smart idea
The case of bulk purchases of products or employee rewards coupons is made to ease the burden on the HR rather than keeping employees in mind. When an employee doesn’t like the reward item they received, it’s quite likely they are not used by them. This is a loss for the organization that spends money to procure these rewards.
Myth 5: Small size companies can’t implement Employee Rewards.
The setup for Rewards system is too costly and time consuming due to the amount of effort to deal with multiple agencies. This can challenging for large companies, let alone small or midsize companies. This leads to the risk of losing employees to competition who might have a better rewards system.As a result, Employees and Employers are not very happy with the employee rewards.
In order to change the scenario and create a flexible online employee rewards system that brings a Win-Win value proposition for all stake holders, we at BigPerx
have created an Innovative Employee rewards system.
Some of the BigPerx Employee Rewards program include:
- Employer can now focus on Performance Appraisals and Productivity and let the employees choose the rewards that motivate them.
- Employer can grant Rewards throughout the year, not just once.
- Employer won’t need to spend time / effort on setting up their own rewards programs.
- Employer need not worry about logistics of delivering the rewards.
- Employer only pay if/when the employee rewards get consumed.
- Employer’s size does not matter.