Money doesn’t buy happiness, they say. Even if this may sound strange to some people, this is also the case for employee happiness. We know that happiness has an essential role in shaping the company’s productivity, performance, and job market outcome. Likewise, employee loyalty is necessary as well, and it is easy to lose. Therefore, underestimating the power of both could be counterproductive for your company.
Why is reward so important?
First, we need to consider how much the fact of being employed (or self-employed) is important for everybody. In fact, employment has a huge impact on our entire lives. Even if we tend to divide work and private life, being employed (and thus, not unemployed) affects our social status, our interpersonal relationships, our life-goals and our daily structure. The type of employment does not matter, in this case.
BEING REWARDED IS THE KEY TO HAPPINESS AND LOYALTY IN THE WORKPLACE
Since employment is so essential in our lives, we cannot deny that it has an important impact on our happiness, as well. And the best way to be happy about the job and about the company itself is to be rewarded.
The reward that an employer can give to the employees can usually be assigned to four different areas: benefits, compensation, recognition, and appreciation. The first two are the most common and “easy”, because they are based on a material reward, such as a promotion, a commission or a raise.
But recognition and appreciation are much more relevant for the happiness and loyalty factors.
They are, in fact, low-cost but they can give an high-return in the long-term performance of both the employee and the company.
RECOGNITION AND APPRECIATION MATTER
Recognition consists in the acknowledgment of the accomplishments achieved by the person. So, for example, when the employee reaches the sales-target, and they get their commissions, it is essential to recognize their effort and dedication as well. This can be done in a million ways, depending on your company. If you have a newsletter, you can use it to underline the success of the employee, or you can reward them with a day off to spend with their families or to relax. The reward can be something specific to the person, according to their interests and hobbies.
Appreciation, instead, means simply the expression of gratitude.
Words matter so much, and a “thank you” is much more effective than anything else.
It is important to make the employee feel appreciated for believing in the company and for dedicating their talent. In this way, they will be loyal to the company and to its culture.
CULTURE, NOT MONEY
Several studies report that, with higher salaries employees tend to take more notice and put more importance to company culture and values. Priorities change together with the salary, and this must be considered.
When the corporate culture is clear to every employee, and when every business decision is acknowledged by taking the values in consideration, then it is easier to gain the trust of the employees and to have them loyal to the company.
Culture simply makes people feel like they are part of a family, of a real and bigger project.
It can be the motivation to coordinate their efforts and behavior towards a proper vision, which will be beneficial for your company. Having a strong, unifying corporate culture can make the difference for employees’ happiness and productivity.
At every stage, nurturing the company culture and values is always profitable. The happier the employees feel the more loyal to the company they are. Consider this huge advantage and make your employees happy, you won’t regret it!