If you are a manager in a company, or if you work with a group of employees, you should come up with a reward system that recognises them. It can be in any form, including monetary awards, gifts and even word of mouth. Some of the reasons why companies should award employees are:
To Boost Productivity
When employees feel appreciated, their productivity is likely to increase. They will put in extra effort knowing that someone is noticing their hard work and recognising them for it. You should ensure that the reward system you use is fair enough so that everyone feels like they have an equal opportunity to win the award.
When you show your employees that you value them and are willing to spare some resources and time to recognise their efforts, they are unlikely to leave. On the other hand, if you are expecting the employees to work but you are not giving them any form of recognition, they will jump to the next opportunity to work in another company. This can push the company behind especially if you have to keep training new people whenever your old members of staff leave.
Makes Company Competetive
You are in a better place if employees want to work for you due to your good practices like awarding employees. You will have an easier time recruiting and retaining employees because they will feel like working for you is a good decision. If you are not serious about having award systems, you may find it difficult to get employees.
Reduces Stress Levels
If you have employees, things work smoothly if your employees are not stressed. You will have a good state of mind if you do not have disgruntled employees. It also helps when your employees are not feeling sad and depressed, as they will perform better.