The Rewards Report March 2016

The Rewards Report March 2016

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  THE REWARDS REPORT Manybusinesses reward employees for a job well done, yet with new generations continuing to enter the workforce there’s a big question mark over what rewards people want and whether rewards engage and motivate staff at all. This report explores what’s currently happening in the industry, considers what form of recognition employees want, and more importantly what rewards have the biggest impact in the workplace.
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  This research hasexplored who in the workplace is receiving rewards taking into account gender, age and location. THE REWARD LANDSCAPE: WHO’S RECEIVING REWARDS? Two thirds of employees received some form of reward in 2015 MOST POPULAR REWARDS RECEIVED LAST YEAR WERE: 1.1 Cash bonus 20% Overtime pay 19% Regular verbal thank you from manager 18% Meal / night out on the company 16% Training and development to help at work 13% Other 14% REWARDS GIVEN ARE NOT GENDER BIASED: A third of men and women both did not receive some form of reward in 2015 Men 36% Women 34% 1.2 MOST vs LEAST REWARDING AREAS OF THE COUNTRY % of employees who: DID receive some form of reward 1. 71% London 2. 70% Yorkshire 3. 66% East Midlands DID NOT receive some form of reward 1. 43% Scotland and East Anglia 2. 42% Wales 3. 41% West Midlands THE REWARD LANDSCAPE £
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  TOP 3 REWARDSPER AGE GROUP 1.3 Cash bonus 33% Meal / night out on the company 25% Voucher to spend on themselves 21% 25-34 18-24 Did not receive a reward 42% Verbal thank you from manager 18% Cash bonus 14% Training to help at work 13% Cash bonus 21% Overtime pay 21% Verbal thank you from manager 17% Meal / night out on the company 17% Training to help at work 13% 35-44 Overtime Pay 22% Verbal thank you from manager 20% Cash bonus 18% 45-55 55+ Did not receive a reward 48% Verbal thank you from manager 18% Overtime Pay 16% Cash bonus 15% Most rewarded age group in 2015: 25-34 and 35-44 year olds 42% OF 18-24 YEAR OLDS DID NOT RECEIVE ANY FORM OF REWARD THE REWARD LANDSCAPE
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  DO REWARDS MOTIVATE& ENGAGE? The research confirms rewards for a job well done has a positive impact on staff motivation; 82% of employees who felt motivated in 2015 received a reward. Most of highly engaged employees also confirmed to receive some form of recognition last year. However, the research also shows that rewarding disengaged employees will not boost their engagement. Why? Rewards alone will not make an employee engaged. You need to engage your employees first, then reward them regularly with a thank you to maintain motivation and engagement levels. DO REWARDS MOTIVATE & ENGAGE? REWARDS SHOULD BE USED TO MAINTAIN MOTIVATION & ENGAGEMENT LEVELS DID REWARDS MOTIVATE STAFF IN 2015? 2.1
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  DO REWARDS MOTIVATE& ENGAGE? EMPLOYEES THAT WERE REWARDED IN 2015 SAID THEY FELT: VALUED MOTIVATED NOTHING 26% 16% 38% 49% of this group are highly engaged 45% of this group are highly engaged 14% of this group are highly engaged This clearly shows that rewards work effectively on engaged employees. However, disengaged employees feel ‘nothing’ when they are rewarded. 2.3 Rewarding disengaged people will not make them engaged DID REWARDS ENGAGE STAFF IN 2015? 2.2 73% Highly engaged 67% Moderately engaged 47% Low engagement 43% No engagement The results are not rocket science – the more engaged an employee is, the more rewards they receive. Rewards received in terms of engagement (% of employees who did receive some form of reward in 2015)
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  Overtime pay ortraining to help at work £ Now that we know rewards do motivate and engage employees, it’s important to understand what kind of recognition has the most impact. Despite many employees saying they want a ‘cash bonus’ from their employer, the next item employees said they wanted was ‘a verbal thank you from their manager’. Appreciation for working hard also ranked highly when people were asked what they wanted from their employer in 2016; a third said they wanted to be “rewarded and recognised for their work.” THE MOST EFFECTIVE REWARDS Diverse workforces have started to change how we consider what rewards to give our staff. Because of this gift vouchers that enable employees to spend their money in a variety of retailers have become more and more popular. ‘A voucher to spend on themselves’ was ranked in the top five rewards highly engaged employees received last year, and a fifth of staff said a voucher was a reward they wanted from their employer in 2016. 3.1 Meal / night out on the company Regular verbal thank you from a manager Voucher to spend on themselves Cash bonus THE MOST EFFECTIVE REWARDS EFFECTIVE REWARDS: TOP REWARDS HIGHLY ENGAGED EMPLOYEES RECEIVED IN 2015: 25% 30% 23% 18% 17%
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  THE MOST EFFECTIVEREWARDS MANY EMPLOYEES WOULD LIKE A SIMPLE THANK YOU FROM THEIR MANAGER It’s important we consider gender when looking at rewards for our workforce too. Being appreciated for their hard-work with a thank you from a manager ranked more highly with women, than it did men. Cash bonus Overtime pay Verbal thank you from manager A meal / night out on the company A promotion Cash bonus Verbal thank you from manager Overtime pay A meal / night out on the company Thank you card from manager 45% MEN WOMEN 46% 22% 24% 16% 21% 16% 17% 13% 15% REWARDS EMPLOYEES WANT FROM THEIR EMPLOYER - PER AGE GROUP (TOP 3 PER AGE GROUP) 3.3 3.2 25-34 18-24 35-44 45-55 55+ Cash Bonus 40% Overtime pay 21% Verbal thank you from a manager 19% Cash Bonus 51% Voucher to spend on themselves 28% Meal / night out on the company 25% Cash Bonus 47% Overtime pay 24% Voucher to spend on themselves 20% Cash Bonus 48% Verbal thank you from a manager 25% Overtime pay 24% Cash Bonus 41% Verbal thank you from a manager 22% Overtime pay 18%
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  The research hasconfirmed that rewards are important in the workplace to keep teams motivated, driven, happy and engaged. However, it also shows that we cannot rely on rewards alone to engage our staff. We need to look at disengaged employees on a case-by-case basis to get them excited and involved in their role again. When people are working hard it’s important we show them appreciation for their output. Despite ‘cash bonuses’ being ranked highly in what rewards employees want to see, so was ‘a verbal thank you from a manager’. It’s easy to get caught up in monetary incentives to motivate staff, however a simple thank you actually goes a very long way – and costs nothing! Meaningful rewards have a longer lasting effect than an extra boost in a pay packet. People don’t like to talk about cash, however rewards such as a night out or a voucher will get your employees talking about their prize, pre, during and post using it. This communication to their peers will not only make the benefit of the reward last longer, but will motivate peers to do a good job too. Finally, don’t forget to celebrate awards. The communication surrounding a reward can have a detrimental impact on how it is received. A face- to-face thank you and handshake from a manager in front of peers will feel much more special to the employee than a note in a pay cheque. It also generates a buzz in the workplace and will give peers something to strive towards. ABOUT THE SURVEY This survey was conducted among 2,006 British employees during December 2015. The survey was run by an independent research agency. The research questions and report were compiled by an independent writer and published in March 2016. To request copies or to find out more about the survey please contact: [email protected] ABOUT RED LETTER DAYS FOR BUSINESS Red Letter Days for Business deliver incentive and reward schemes to assure employers will drive lasting engagement and success for their business. Call us on 0345 600 7610 Email [email protected] Tweet us @RLDforbusiness REDLETTERDAYS.CO.UK/FORBUSINESS REWARD CONCLUSION: WHO, WHEN, WHAT & HOW?