A lot of people may think that the most important asset in a company is the profit it earned at the end. Of course, the total amount of money you earned can dictate how successful your marketing strategies have been. Money also keeps the business operation running smoothly for years because it can be used to purchase more supplies and resources essential for your business.
However, as an entrepreneur, it is also important for you to understand the importance of having good and hardworking employees. More than anything else, your employees should be considered as the BEST asset because they are the most important resources any company can have. Without them, it would be impossible to keep the business running efficiently and smoothly and, most of all, you will not have a chance to enjoy all the profits you have right now.
So it is only right to create a rewards system for deserving employees. There are a lot of different ways in which you can show your appreciation to your employees, one of those ways is by giving out employee recognition awards.
Reasons to Create an Employee Recognition System
Recognizing the hard work, effort, contributions, and achievements of your employees are essential in building a healthy workplace. For most employees, receiving compliments can make them feel more motivated and driven. Thus, showing your appreciation is not only good for employees but to the company as well.
In this section, we will provide a short rundown of the reasons why an employee reward system is beneficial for your company.
1. Helps Boost Productivity
When you recognize the hard work and effort of your employees, they become more driven and strive to be more productive. If your reward system is quota-based, you do not only encourage a healthy competition but also motivate your employees to reach their target goals at the end of the day.
2. Increases Employee Retention
One of the most common reasons why employees leave a company despite having a good salary is that they feel underappreciated. Many employers may think that giving them a good salary is enough to make them stay. As humans, the need to feel appreciated for our effort is important. Sometimes, we need to thank our employees for the contributions in the organization.
3. Reduces Tardiness and Absences
Although most reward systems are performance-based, the consistency of the employee’s attendance is another factor that needs to be recognized by the employer. Unscheduled absences can have a great impact on the daily operation and production of the company. That is why rewarding employees with perfect attendance can greatly reduce tardiness and absenteeism.
4. Improves Teamwork
If your employees work by department, it helps them to communicate with each other in brainstorming and discussing new ideas and solutions that are beneficial for the overall well-being of the company. When there is teamwork, employees are more likely to reach their target goals and reduce the risk of getting burnt out.
5. Boosts Morale and Self-Esteem
Incorporating an employee reward system in your workplace can help you align the goals of your company with your employees. You may see the reward system as a small thing, but for employees, it is a big deal because knowing that your employer sees your value, it greatly helps in boosting their morale and self-esteem. Employees will invest more effort in their work and at the same time, infuse it with a sense of mission.
Forms of Employee Recognition Awards
There are a lot of ways in which you can recognize and reward the efforts and quality of work of our employees. Although the quality and level of effort and hard work of each employee is different, it is a smart idea to identify the employees who deserve to be rewarded.
One of the most common forms of employee recognition awards is monetary incentives. Additional financial compensations are often given to employees with exceptional performance at the end of the month or year. Monetary awards are considered to be an effective business strategy in encouraging a friendly competition among employees to do better in performing their job.
There are times when a company opts to give out non-monetary awards to deserving employees. Non-monetary awards usually come in the form of a certificate of appreciation in different categories. Although there is no money given in the award, certificates can have a sense of sentimental value because it can constantly remind the employees how the company sees and value their hard work. Check out the different certificates of awards and recognition templates that are provided below:
Business Certificate Template
Service Award Certificate
Certificate of Achievement for Excellence in Financial Reporting
Modern Multipurpose Certificate
Simple Certificate Template
Bonus Award Letter Word Format Free Download
Employee of the Month Certificate Template
You should always keep in mind that creating a recognition and reward system is a key factor in your company’s success. Motivate your employees and celebrate with them for a job well done. You do not have to invest in monetary awards to show your appreciation to your employees. A simple certificate of recognition is enough to let them know how you value them in your company.