1 year ago
Types of Extrinsic Rewards at the Workplace Uncategorized
Rewards are an important part of a job. They boost employee morale and motivate them to work with more dedication. They can make a big difference at the workplace and can make employees feel recognized and appreciated. The importance of rewards can be emphasized by a research stated in How Full Is Your Bucket. This book mentions the results of a Gallup study that found that the leading cause of employees quitting their jobs in America is because they do not feel appreciated.
Therefore, rewards are key to driving employee productivity and can help control employee turnover as well. Extrinsic rewards are those that are received by an employee from an external source. There are three kinds of extrinsic rewards.
Financial Rewards – In Cash
Cold hard cash is one of the most common and effective employee rewards. Even a minor increase in salary or a bonus can work wonders on employee productivity and morale. A financial reward gives employees a sense of recognition and appreciation and boosts their motivation immensely.
Material Rewards – In Kind
Material rewards are also effective morale boosters and productivity drivers. They give employees a sense of accomplishment and boost their self-esteem. Material rewards can be anything from a company car or a paid vacation, to a restaurant voucher or concert tickets. The kind of rewards depends on the organization’s budget and the employees’ performance as well.
Social Rewards – Intangible
It is in human nature to expect approval and praise for a job well done. Regardless of age, praise is a true source of delight and joy for people. Social rewards can enhance a person’s self esteem and make them feel better about themselves.
However, the timing for social rewards is crucial. Recognition and feedback must be given immediately to have the most affect. A delayed feedback will not be received with as much fervor and will have little effect on morale and performance.
You can incorporate all these types of rewards in your reward program to make your employees feel appreciated and recognized.