Though the economy is finally starting to stabilize, many small to medium sized businesses are still struggling to implement employee recognition solutions at the office. Budgets remain on lock-down across the country, making it difficult for companies to reward employees with the pay raises they expect and deserve.
Smaller companies need a productive workforce to remain competitive in the market, and that’s why employee motivation is so important. When they’re not rewarded for their hard work, employees can grow bored and unsatisfied – and they may even start looking for work elsewhere.
Luckily for cash-strapped businesses, there’s more than one way to recognize an employee. Though pay raises have long been the standard way to compensate workers for going above and beyond the call of duty, studies have shown that subscription-based recognition and rewards programs can be an equally effective way to increase employee motivation. As it turns out, money isn’t the only factor that determines performance – at least as far as your star employees are concerned.
According to Daniel H. Pink, the author of the New York Times bestseller “Drive: The Surprising Truth About What Motivates Us,” the biggest factors in determining employee motivation are autonomy, mastery and purpose. Employees are the most productive when they’re given work that challenges them and when they’re recognized for mastering it. Gift cards and other merit-based bonuses fulfill the desire for recognition, but at a fraction of the cost of a 5% increase in salary.
The research doesn’t lie, and that’s why so many small to medium sized businesses are turning to employee recognition programs. These employee motivation services offer customizable web-based software that can track and analyze employee performance and then dole out rewards accordingly. In doing so, they provide an efficient and cost-effective alternative for your human resources department, which would otherwise be burdened with the task.
In this economy or any other, employee recognition is the one thing that small to medium sized businesses can’t afford to cut. To that end, web-based employee recognition software offers an affordable way to keep your company’s workers motivated, recognized and engaged. So if your business is having trouble maintaining productivity, consider signing up for a trial with an online service the next time you get a chance. It might just be the best productivity-boosting experiment you run all year.
Jason Johnson is the CEO of Kudough, the country’s fastest growing web-based employee recognition solution. We’re committed to making employee rewards effective and affordable for organizations of all sizes. Visit our website www.kudough.com or email us at info@kudough.com to learn how easy recognizing your employees can be.
Employee Recognition Programs are a Recession-Friendly Alternative to Raises
