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In this competitive world of business, the management of a company has to motivate and reward its staff in order to be successful in business. Staff rewarding through monetary incentive is greatly practice in major companies. The goal of this scheme is mainly to motivate and reward the company's worker to strive harder. According to Concise Oxford Dictionary, reward is "a thing given in recognition of service, effort or achievement." From research done, reward is said to motivate the worker inspiration to perform a higher level. The organisation rewards its staff by motivation, persuasion, laying a strong foundation of the company for the employees and offer attractive remuneration to good quality workers. Therefore, rewarding the staff through monetary incentive plays a crucial role in the management of an effective organisation.
In this business world, money is part of an effective motivation to spur the workers to strive harder in their work. For example, if reward is not given to the employees, they may spend more time creating unproductive things that do not benefit the company. Therefore, it may lead the company to a downfall and most likely employees will find reasons or excuses not to work diligently. For example, employees will forge a medical certificate to avoid going to work. This is because they do not enthusiastic coming to work. In order to motivate the employees, employer should reward them for their good performance and behavior. So, when a company gives incentives to the employees, they feel appreciated and willing to work harder so as to contribute more to the company. Furthermore, employees are human beings with a lot of individual needs. In the service industry, employees who are highly motivated will provide better quality customer service and give positive image to the business. Providing good customer service and having a positive attitude are good reasons to award employees. Motivated employees are more likely to be loyal to the company. Their ever growing will become valuable asset to the company. They will also accept their responsibility as a worker and in future, they will find ways to perform their job better. According to the State of Virginia Department of Human Resource Management, "giving reward will also create improved day-to-day interactions between employees and employer."
Other than that, giving rewards can also be an asset for persuading employees to work for long hours. This is because employees may not want to work longer hours than their contracted time but they can be persuaded to do so by giving bonus for their exceptional contributions to the company. For example, they may become bored with it and the performance standard will drop if the reward is not given to the employees. It will also reduce the expenses of the company. The company does not need to spend money on recruiting staff and training new staff. Giving rewards have also a lot to do with reinforcement theory. Basically, if the employees did exceptional contributions to the company, they will be given rewards from their employer. Therefore, employees will give exceptional contribution to the company in the future, believing that he or she will receive incentives. Rewards can also lead employees to have a goal in their work. Every company's vision and mission are often similar which is to maximize their profit. For example, company often has a standard amount of profit to achieve within a month. According to Novato, employer should tell the employees what they need to do to get the rewards. By rewarding their employees, their goal will be one-step closer. For those employees rewarded, they should put in their best effort to achieve the objectives of the company. Therefore, they will create their own goals and action plans to achieve their accomplishments.
In addition, companies that practice staff rewarding show their capabilities and potential to lay a strong foundation in its business. For that, the employees will be motivated to work for the company because of its strong foundation in the business market. On the other hand, companies which do not practice staff reward may show its inability to withstand challenges from other competitors. It may have to resort to retrenchment of the employees because the company faces losses or problems. Therefore, employees will feel insecure and may apply to other stable company. According to Robert Half's survey, "salary, benefits and company stability were the top three most important factors when evaluating a job offer."
Besides, giving rewards will attract good quality employees to join the company. Every employee wants to feel that they have talents and good qualities for the job. From employee's perspective, they feel they can perform their task assigned to his or her job is special when there are rewards given by the company. Thus, they will join the company that often give rewards to the employees. For instance, if the company give little rewards to the employees, good quality employees may not join the company in order to maximize the profit. According to Mitra, "a 14 percent raise is likely to get Joe fired up but a 7 percent raise probably would not get him doubly fired up."
In conclusion, rewarding staffs by giving them incentives for their contribution is indeed effective. In short, companies should practice staff rewarding in order to gain loyalty and high performance from their employees. Overall, if rewards can enhance employee's working ability and capability in an effective way, companies should use the best management strategy to reward their staff.
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