Sodexo’s Iain McMath discusses how businesses can get the best value from rewarding this festive season
Reward and recognition practices are a powerful way of motivating employees, and the festive season offers the perfect opportunity for employers to demonstrate their gratitude for the previous year’s work. However, recent research found that 87% [1] of organisations without a formal recognition scheme in place don’t reward their employees at Christmas. CEO of Sodexo Benefits and Rewards Services, Iain McMath, shares his opinion on rewarding at this key time of year.
What can businesses gain from rewarding at Christmas?
Dedicating a small amount of resource to thank employees and show appreciation for their work brings enormous benefits to a business. Not only does this motivate individuals and boost team morale, it is also a chance for senior management to connect with all levels of their workforce. As there is a continual move towards flexible working and part time contracts, the opportunity to reach out to all staff equally and draw people together is one that can only benefit a business.
How can organisations get the most value from reward?
The benefits of rewarding staff are well documented. Greater engagement, increased motivation and higher retention are just a few of the benefits that employers can gain from a relatively small investment. However, in order to maximise these benefits, it is vital to ensure that rewards are both relevant and desirable to each individual, which can be difficult when modern workforces are so diverse in age, gender and interests. Implementing a generic suite of reward options is no longer seen as effective – instead, recent years have seen an increasing demand for rewards to be more bespoke and better communicated, whilst having a clear link to the organisation’s core values and goals.
In order to get the best value from rewarding, it’s crucial to engage with employees and keep pace with what they value on top of their regular salary. It’s important to find ways to tailor these benefits so staff feel recognised for their individual contribution, as well as keeping track of their take-up so you know what’s working well – and what isn’t.
How can employers overcome common challenges when practising reward and recognition?
With an increasingly competitive job market, employers need to consider innovative reward packages that will attract and retain the most talented staff. Companies should try to be creative, so that rewards outside of regular pay offer real added value.
According to Sodexo’s research, 45% of organisations who have a reward scheme in place find communication the biggest challenge [2]. It’s vital to consider your employee demographics and the generations within your business. For example, whilst some members of staff may expect digital communication, others may respond better to a presentation or written card.
Do cash bonuses work?
This depends largely on the desired result – first and foremost businesses must recognise that employees seek variety in their rewards too, as their motivations for coming to work become more complex. Reward and recognition is often used to encourage desired business behaviours and so more personal rewards are more likely to be associated with particular actions, rather than getting lost amongst the bank balance, or merged with money spent on everyday essentials such as food or bills.
Sodexo’s research found that 75% of organisations now use gift cards and vouchers as an element of their reward strategy, allowing each employee to choose a gift that’s appropriate and personal to them. [3]
Is Christmas the most important time to reward employees?
The festive season is the perfect opportunity to reward employees and loyal customers; thanking staff for their efforts over the year can make them feel valued and increase motivation ahead of the New Year, combating the traditional ‘January blues’. However, reward and recognition practices should not be limited to Christmas time. Instead, they should form an intrinsic part of organisations’ culture throughout the year, playing an essential role in boosting morale, improving engagement and ultimately increasing your bottom line.
