At present, many companies are facing a challenge. Due to economic progress and job growth, employers now face the predicament of losing their employees to other employers. According to Taylor (2004), “Top performers might be lured elsewhere just when they’re needed to help manage a company’s growth and when the firm can’t afford to match the offer from the other side of the fence (1). ” This is not a new issue; however, it is currently a serious problem.
It is crucial for companies to keep their clients; nonetheless, it is equally significant to maintain their employees. What would companies be without the people who work for them? Employees are as important as the clients they serve, so companies should pay attention to their needs. It is a fact that there are other companies out there which offer greater compensation, and it would not take much for people to cross to the other side. So how do employers keep their workers, especially the productive ones, from seeking greener pastures?
It is quite simple: they should encourage employee retention. They should find ways to make their workers happy and satisfied, so they would not even consider leaving the company as an option. This paper seeks to define recognition as an intrinsic reward in the work place environment, and how spot bonuses serve as a form of job retention. Every company has its own incentive program for their employers, but the incentives affect different people in different ways.
Jim McComb, a senior consultant for marketing and strategic planning at Performance Management Resources in Colorado, has this to say: “One mistake a lot of banks make is they don’t customize the rewards…Different factors motivate different people and there is no way you can structure an incentive to be all things to all people (as cited in Morrall, 1996, 3). ” This premise does not only apply in banking institutions. Rewards programs must be modified according to the needs of a certain company. Nevertheless, there is one reward that can be applied to any company.
That is recognition. Why recognition? Every employee, regardless of rank and status, needs to be recognized. If one particular person is hard-working and extremely productive, it would benefit the company greatly. Some may argue that it is an employee’s task to be productive; however, it is also the employer’s job to make sure hard work is recognized. McComb adds: “It is amazing how many people are motivated by recognition, yet few people actually get it (as cited in Morrall, 1996, 4). ” Recognition can effect a great change in one employee.
It can boost one’s self-esteem, and he or she will be encouraged to work harder resulting in more good news for the company. When an employee is happy, he or she is productive. When an employee is productive, the company will benefit. Recognition need not consist in making an employee the star of the company (Morrall, 1996, 5); that would be unnecessary. Morrall (1996) writes, “Effective recognition is a mix of periodic thank you’s in front of peers and simple everyday acts of letting employees know they, and their ideas, are valuable (5).
One form of recognition that also encourages employee retention is spot bonuses. There already exists a financial reward for employees for their stay in a company, but spot bonuses are different. They are now used as retention tools because of “their positive impact on employees can far outweigh their cost to the company (Taylor, 2004, 2). ” Moreover, Taylor (2004) believes spot bonuses are also helpful in creating “a superior workplace environment, which in turn can boost recruiting efforts.
If recognition increases an employee’s self-esteem, spot bonuses can encourage further productivity, since the financial rewards may just be around the corner. Employee recognition is an intrinsic reward in the work place because it is the employer’s job to make sure the workers feel that their contributions are valuable and valued. Spot bonuses, on the other hand, are an example of a job retention tool. It is because when employees feel that their efforts are rewarded, they would surely stay in the company. In turn, the company is also rewarded, because satisfied employees are very productive.