Employee Reaction to Reward

Employee Reaction to Reward

The reward is the attractive and motivational property of a stimulus that induces appetitive behavior – also known as approach behavior – and consummatory behavior. There are individual differences in response to reward type. Some employees will be more motivated by social rewards (e.g. praise and recognition) than cash rewards. It is therefore important to understand the motivational factors of each individual employee and distribute rewards based on employee preference and their resulting degree of motivation.

Reward Strategy defines the intention of the organization how its reward policies and processes should be developed to business requirements. All of the tools available to the employer that may be used to attract, motivate and retain employees. Research on individual differences can shed light on employee preferences for reward types. The majority of employees prefer cash rewards; however, many employees will perform better in pursuit of non-cash rewards of similar value. Thus, balancing cash rewards with non-cash rewards can be an effective workplace reward system strategy. Total rewards include everything the employee perceives to be of value resulting from the employment relationship.

The reward is one of the key levers available to an organization to influence the behavior, motivation and the commitment of its staff. In fact, the overall approach to reward sends strong messages to all employees about what is important to the business. Effective employee reward systems can motivate employees, increase their work performance and encourage them to align their performance with the company’s objectives. It is therefore critical that managers understand what constitutes an excellent employee rewards program, how to implement it and when to make necessary changes. Doing so can have a major impact on the company’s climate, culture and bottom line.

Reward management is concerned with the formulation and implementation of strategies and policies that aim to reward people fairly, equitably and consistently in accordance with their value to the organization.


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