Loyal and hardworking employees are the backbone of every business, especially in uncertain and down economic times. The Hay Group conducted a study, titled Changing Face of Reward, that gives evidence of effective reward programs that are prevalent strategies for boards’ and senior executives during a recovering economy.
This is a first study pertaining to reward incentives in ten years, reports Consultant-News.com.
An important finding of the study showed that employee retention and recruitment of essential employees will continue to be a steadfast strategy for success, especially as businesses move out of the recession. In line with this, leaders in business realize the need to remain focused on motivation and rewards for their high performance employees.
The study suggests that business owners are focusing the financial rewards into three key groups:
1. Workers who demonstrate high potential.
2. Workers who are high performers.
3. Worker who fulfill specific and critical jobs.
While this strategy will ensure employee satisfaction and loyalty, businesses need to adhere to strict budgets. The increased regulatory environment has a number of business owners concerned about the additional expense in their efforts to hang on to valuable employees.
Points-based rewards programs are cost-effective strategies for employee recognition programs that will help promote employee loyalty. Entrepreneurs should inquire of professionals in the incentive industry to learn of these types of programs.