Recognition has emerged as the top driver of ‘great work’ with 37% of employees voting for it in a survey by Great Place to Work. And one way a company recognises their employees is through appraisals.
Appraisals are probably the most important professional event for employees. It typically signifies the day that their efforts will be recognized by the managers and the company.
However, the process generally leads to mixed feelings with companies choosing to take a conventional approach to rewarding performers. Its implications are now evident with scores of employees resorting to quiet quitting. Companies are quickly realizing that performance appraisals are essential in enhancing motivation and productivity. That is why they are tying up appraisals with employee rewards programs.
In this blog, we will see how employee rewards can help improve the employee appraisal process.
Employee rewards program – Its significance
For a long time, companies have been running employee rewards and recognition programs on auto-run mode. That is, it followed a templated approach of inviting nominations from managers, picking the top performers, and giving them generic company merchandise along with a certificate. However, this has changed over time with companies personalizing rewards programs to better suit the preferences and expectations of their workforce. It has handed companies with revolutionary changes as discussed below:
- Employee rewards programs work as great motivators. It encourages employees to work harder in pursuit of recognition by the management.
- It improves productivity and efficiency of output, which is primarily because employees are more focused and satisfied with their jobs.
- Employee recognition creates a culture of collaboration and emanates positivity at the workplace with everyone feeling appreciated for their work.
- It enables companies to retain and attract top talent, which not only helps with operational excellence but reduces recruitment costs.
Using employee rewards program for performance appraisal
Employee rewards programs allow you to reinforce positive behavior by recognizing and appreciating performers. It not only motivates them but also helps in improving the productivity of everyone else. But to maximize its benefits, companies must be thoughtful of how they integrate rewards with appraisal performance. Below is a detailed explanation to guide you through the process.
Align rewards with performance goals
To ensure that your employee rewards program results in the desired outcome, you must define performance goals during appraisals. You must communicate it clearly so that employees can build a clear action plan. Additionally, your rewards must work like milestones for employees working towards achieving specific goals. For this, you can have an impromptu appreciation session.
Recognize achievements with rewards
An important part of the employee rewards program, like the name itself suggests, are the rewards. Companies must be mindful of how they use them to acknowledge employees who have achieved the goals or exceeded expectations. These rewards motivate them and work as a validation for their efforts.
Give rewards in equal measures
Instead of creating one annual employee rewards and recognition program, have multiple events to recognize wins of all kinds. For example, an employee getting appreciation from a difficult client might not impact the annual rewards program, but it is an achievement, nonetheless. For such scenarios, you can reward the employee with a gift voucher. Most organizations have quarterly rewards programs to have more focused recognition.
Be open to selecting a variety of rewards
A workplace comprises a diverse group of people, who come from different backgrounds and different expectations. Therefore, having a generic, one-size-fits-all rewards program might not work out. To ensure your rewards leave a lasting impact, you must understand the preferences of your employees and plan them accordingly. Have a diverse range of rewards like monetary incentives, paid time off, and sponsored development opportunities.
Ensure transparency in appraisal rewards
The success of your approach to linking performance appraisal with rewards programs hinges on how well you communicate the process. Employees must understand how their performance will translate into rewards. It is necessary to include both individual and team performance as qualifying metrics so that you can create a collaborative workplace culture.
Review your program regularly
Employee rewards program is not a one-time strategy. You must continuously improve the effectiveness of your program in achieving the goals set in appraisal meets. Most organizations fail to do that and end up failing the relevance of rewards programs. To avoid this, you must continuously monitor, review, and seek feedback from the team on how its effectiveness can be improved.
Enhance appraisals through an employee rewards program with Propel
Integrating employee rewards programs with performance appraisals is an intricate strategy. As an HR leader, you must tick several boxes to ensure it produces the desired results. For this, you must use a robust employee rewards platform like Zaggle Propel. It is an all-in-one rewards solution that allows employers to increase employee engagement through intuitive user experience and employee-centric recognition workflow.
Zaggle Propel is designed to allow companies to customize their recognition and rewards programs so that they align with their business goals and values. It empowers businesses to configure workflows for multiple rewards programs including peer recognition without administrative overhead. It also provides real-time visibility into employee recognition programs so that you can alter the strategies dynamically. Check out its full capabilities here.
