Employee Reward Systems - Essay Example

This type of recognition can be particularly surprising and exciting for workers. Nomination-based reward systems can promote a friendly atmosphere, but unfortunately, this system may become more like a popularity contest. In other companies, such as the State of New Mexico Human Services Department, specific criteria must be fulfilled for the award to be given. These companies are organized differently, and particular tasks can qualify a worker to achieve a higher rank in the company. These reward systems are appreciated by employees that prefer to know exactly what they must do to move ahead in the company.

In general, straightforward reward systems are more highly regarded by employees because they promote structure in the workplace and a defined sense of purpose. The actual rewards can be many things, from a monetary bonus or gift certificate to a hand-written note of recognition and approval from a supervisor. Reward systems even include promotions of employees to positions with more responsibility and higher salaries. For any reward system to be effective in the workplace, employees must know what is expected of them in order to earn the reward.

Corporations that reward certain employees based on poorly defined qualities or achievements can make employees angry because they may assume the reward was given for reasons other than hard work. Basically, every employee needs to understand how the reward system operates and every employee must be eligible for the rewards. Without such a direct and open policy, reward systems may be neglected or even rejected by workers, and the entire company would suffer. When they are organized and executed correctly, reward systems can be a win-win situation for employees and employers alike.

Reward systems can increase company morale and help employees feel that they are working toward a goal, both of which contribute to a stable, healthy workplace.