Rewarding
is the process of rewarding employees for displaying desired behavior or for carrying out tasks that produce desired results. According to Brooks, providing incentives to employees in the form of cash or other non-cash benefits frequently spurs them on to work harder in order to further the company's objectives, which ultimately improves business performance (Brooks et al., 2016).
Money-based prizes and non-monetary rewards
are both available. Compensation provided to an employee in the form of cash, a banker's check, a raise in salary, or a commission is referred to as a monetary incentive. Another example of monetary compensation is awarding of bonuses on a basis of pay for performance, where an employee is compensated for putting in more effort into the delivery of a company's work (Altinay et al., 2008).
Non-monetary reward, on the other hand, refers to items of value that can be awarded to an employee as a compensation for his or her efforts in the company's production process. This may manifest itself in the form of tickets to a football match, a theatre or a holiday destination. Other forms of incentives include handing out of coupons that could be exchanged for meal or train tickets. Moreover, employers can give outstanding workers gifts such as new shoes or clothes as a compensation for their determination (Altinay et al., 2008).
Links between Rewarding and Business Growth
Business growth is often linked to rewarding of employees. The link is as a result of highly motivated employees. Altinay et al. (2008) suggest that both monetary and non-monetary compensation systems are a prerequisite for small business growth. This is because monetary rewarding systems, such as warding of salaries, is considered a necessary condition if the small business hopes to retain any employee. This is since monetary compensation is that basic value exchange method that the organization uses to fulfill its obligation to its employees. However, so as to retain even the high-performing workers, an organization is advised to offer secondary non-monetary rewards to them. This is because while basic employees are important in maintaining the economic state of a business, it is the high-performing employees that make the business grow since they put in that extra effort. That is why rewards are linked to business growth (Brooks et al., 2016).
Moreover, an indirect link also exists between rewarding of employees and business growth. This link is evident in the fact that growth of a business is directly attributed to proper management. Proper management, on the other hand, entails activities such as retaining and nurturing valuable employees though rewarding (Segel-Karpas et al., 2015). This resonates with the assertion that the success of a new and expanded private sector will depend on the ability to create engaged employees. These are workers who are motivated, committed and prepared to go the extra mile. Research shows the top 25 per cent of firms with the most engaged employees produced twice as much profit as those with the least engaged employees (Brooks et al., 2016). Therefore, it can be concluded that rewarding of employees positively contributes towards business growth.
Conclusion
Rewarding is compensation of employees for their input in the production of an organization. Thereby, rewarding employees should not be neglected as workers have rights to monetary rewarding. Non-monetary rewarding is a form of value transference that does not directly use money as a medium. It is important to use non-monetary compensation so as to retain high-performing employees.
Reference
Altinay, L., Altinay, E., & Gannon, J. (2008). Exploring the relationship between the human resource management practices and growth in small service firms. The Service Industries Journal, 919–937.
Brooks, S., Mogielnicki, R., Scott-Jackson, W., Snell, J., & Benchiba-Savenius, N. (2016). The human aspect of Vision 2030. MEED Business Review, 36-38.
Segel-Karpas, D., Bamberger, P. A., & Bacharach, S. B. (2015). The prevalence and distribution of aging-friendly human resource practices. The International Journal of Aging and Human Development, 120–148.
