Cash is always appreciated but it’s not the only option when it comes to rewarding employees. In fact, sometimes it’s not even the best option.
That said, cash is often the first thing many managers and hiring manager think of when it comes to motivating employees. That’s especially true now that unemployment is at historic lows and finding talent has become more competitive than ever.
According to “Winning The War For Talent: Modern Motivational Methods for Attracting and Retaining Employees,” a recent research study published in Compensation & Benefits Review, employees want to feel like their job is more than just a paycheck. The cash can help boost morale and even lead to improved customer service, but what motivates employees even more is a sense of appreciation from their manager. The research highlighted in the article noted that the appreciation led to higher job satisfaction and less turnover.
So, how can a manager show appreciation? Here are some creative ways to do so according to the study:
Give the employee time off
Research demonstrates that employees who take time off are less stressed and more productive. Give an employee an extra day off in their schedule and see if they come back feel more refreshed and appreciative.
Have employees reward one another
This can be an entire program where employees can recognize one another and award a certain number of points each month when they want to thank one of their co-workers for a job well-done. The points can then be traded in for gift cards or time off or some other perk. As an added bonus, this peer-to-peer rewards program can build social connections among the staff.
Say thank you
According to the research, some managers actually have a hard time saying the words ‘thank you.’ If that’s you, you are missing out on one of the best ways to reward employees. The authors of the study noted that the praise should be specific and should highlight the employee’s unique contributions to the business.
Consider giving a nice gift, instead of cash
Employees who receive cash will often spend it on a mundane item like paying a bill. On the other hand, a gift — especially if it’s something related to a hobby or interest — will be much more memorable. If an employee is a soccer fan and his or her manager gives them tickets to a game, that’s going to be much more impactful than a gift card.
In addition, many employees don’t want to talk about money in the workplace so they don’t share the cash reward experience with their co-workers. But they will talk to their co-workers about a fantastic gift they received from their manager. That additional social interaction will likely lead to higher motivation from other employees who also want a nice gift.
If you do give cash, include a personal note
According to the research, including a note can make the gift of cash seem like less of an empty gesture. It should describe why the employee deserved the bonus and why they are a valuable asset to the business.
Make the recognition public
As with several other items on this list, the idea that rewarding one employee can motivate others just goes to make the recognition even more powerful. To that end, the researchers said that holding an event to hand out gifts (or cash bonuses) can be very motivating to others and the social bonding can improve morale.
Want to know how a point-of-sale system can help with employee management? Contact us today for a demonstration.