In
general, organizations signal what activities they want to encourage by rewarding
employees monetarily who demonstrate those activities. Monetary rewards can come in the
form of increased base pay or bonuses. Individual bonuses are similar to merit pay,
but they are a one-time payment that don’t increase an employee’s base pay
permanently. Awards are one-time rewards, but they often are given in the form of a
prize such as a sales representative receiving a vacation to
Organizations
also should recognize that different people value different rewards. Some workers
may prefer non-monetary options.
Paid time off has become especially valuable to
employees whose spouses also work. Married or single, employees can use paid time
off to tend to personal affairs. Time off also allows employees to rejuvenate,
returning to work refreshed and more productive.
Recognition not only acknowledges good
performance, but it also confers status to employees. Some workers prefer the
“social capital” of special attention for their good work more than money.
Recognition programs also tend to be inexpensive for organizations to implement.
Organizations
also can reward good performance by investing in employee
development. The organizations pay for the employee to develop knowledge and
skills that not only help him or her perform the current job but also prepares him or her
for future positions. organizations that rely on innovation particularly benefit from
using employee development as a reward for good performance.