Alternative Reward System
Alternative Reward System
Employees carry forth the vision of the company – they create new opportunities, help you and work with
you to overcome challenges, manage the day to day operations to help you achieve consistent growth over
time. Without satisfied employees, your productivity can erode away and the progressive upward trend of
your company can collapse.
To keep the positive morale flowing in the office, you need to reward your employees regularly, or at least
when they’ve done something exemplary. It reinforces positive behaviour for the individual and also sets an
example for the whole organization and demonstrates your appreciation for the team.
When we talk about reward, I do have to say this upfront though, if you’re going to use rewards to motivate
your team, then you need to do it wisely. Rewards shouldn’t just be used as a tool to manipulate behaviour;
instead, they must be used as a form of recognition, and to signify to employees that you genuinely value
their contributions.
Let’s face it, resources are always limited. As your company grows, the one truth all managers face is how
to reward employees and keep them happy other than giving them a raise and promotion. The problem is
that rewarding your employees through monetary means such as raises or bonuses—are not always
economically feasible, especially for new and developing businesses. Also, beyond a point, monetary
rewards don’t always have an impact on motivation. Even if you can afford to give a raise or a bonus as a
reward for a job well done, it may be worth your while to consider at least one of these alternative rewarding
strategies.
Here are some ways in which you can acknowledge your employees without monetary compensation.
1. Offer Flexibility as a reward:
We have discussed in a number of blog posts about how to adopt flexible work options, which is ideal in
today’s scenario where people are ridden with terrible work commutes and sandwiched with responsibilities
of caring for elderly parents and / or children and so on. While there are still several gaps in expectations
and execution of this idea, the benefits far outweigh the challenges. For the most valuable members of your
team, consider offering alternative work schedules.
One way you could do this is, if your team meets its monthly sales targets early, leaving a few days to spare,
allow them to go home early the last few days. If your marketing team finishes work on a big campaign with
no hiccups, let them come in late a day or two, in the following week. Or at least don’t pull them up if they
happen to come late.
You can also let your most valuable employees work from home occasionally, or offer other types of
flexible scheduling. Just make sure to tie the benefits to a real-world accomplishment so it proves your
appreciation.
These amenities will likely cost less than distributing raises on an individual basis, and they’ll do their job of
making your employees feel rewarded and satisfied with their work.
The excellent part is most employee benefits are a tax-deductible expense for businesses, meaning they’re
going to cost you less in the long-term even if they require a bit of money upfront. Rewarding your
employees across the board with greater benefits can also function as a sign of goodwill – that you
appreciate all your employees.
It also builds the reputation of being a considerate employer, and importantly that the company is doing well
enough to afford the extra benefits.
You could get creative with ideas galore. From handmade greetings, to acknowledge frames, to dinner with
a celebrity or sponsored vacation; if you put your mind to it, the list can be very long. The concept is, to
simply do something fun and recognise the colleague for their good work.
As an extension, it’s important to create an environment where people congratulate and appreciate each
other. Tell managers to offer praise whenever it’s appropriate, and foster good relations between your
employees. Eventually, you’ll cultivate an environment of positivity, and the rewards will show for
themselves.
While millennial do bear the job hopper label, they are more likely to stay when opportunities for
development are offered. So as a reward it would be highly effective if social volunteering is offered as a
reward or perk. It is worth noting though that this might work for few and wouldn’t for others, so it is
important to pick whom to offer it to.
To quote my own experience, when I was employed at Lintas I got one month paid leave go an volunteer for
the Siddhi Goma Tribe in Bhavnagar. This option was given to all 175 employees at the time, however, 13
of us took it up. While it was a month off from work, of course, we had to submit a small one-page docket to
summarise our work and experience there. This was very invaluable learning for me.
Other ways to implement this is allowing them time off from work or working hours or providing paid
leaves or let them promote the NGO or cause they support in office or even simply creating a coffee session
to allow everyone to discuss how they are contributing to social good.
This is in no way new. Many companies give housing quarters to their employees. They offer medical
treatment or reimburse expenses not just for its employees but the family and sometimes extended family
(in-laws) as well. Going a step further, some companies have schools for the children of its employees or
recreational facilities and other benefits at no or lower costs.
More recent phenomenon’s include having ‘bring your family to work day’, or annual day celebrations, or
Diwali and New Year parties where the family can participate. There are so many examples other than just
inviting family members to award functions or for family day at work. One organization gathered the details
of all employees’ mothers and sent those flowers on Mother’s Day with a note ‘thank you for, he/she is a
valuable asset to our company’. Such initiatives improve the confidence and respect for the organization and
families are more accommodating to the employee, be it extended workings hours, increased business trips
or any other inconveniences.
Celebrate ‘world’ days – recently one of our clients celebrated ‘world gratitude day’ where all employees
gave and received gratitude from each other voluntarily. Companies could handpick 12 days of the year to
celebrate, and there are enough ‘world days’ to have a new set of 12 annually.
The more appreciated your employees feel, the more committed they’ll be to your company, the harder
they’ll work, and the more benefits your entire team will be able to collectively enjoy. Recognition,
appreciation, and rewards for important contributions and outstanding performance are other key factors that
keep employees motivated and ready to go the extra mile for the organization.
While different factors may motivate different employees, recognition is something they all strive for. The
reward system should be transparent, impartial and credible so that it enhances trust among the employees.
An ineffective reward system, on the other hand, can further push away the employees and make them feel
cheated and uncared for. Lastly, companies must try to avoid monotony and try to keep an element of
surprise in the rewards they offer.