There is little doubt that the first two decades of the 21st century has turned the global labour market on its head.
The main culprits being globalisation, the 2008 Global Financial Crisis, the introduction of technological change, and the fact that we live in an era of mergers, acquisitions and corporate restructuring.
This has led to significant job loss despite economic growth and good corporate profits.
This period of rapid change has also gone to the heart of employment regulation itself with more people switching over to the Uber-inspired Gig Economy, particularly in the United States of America.
This period has also lead to uncertainty across the workforce as the pace of mergers and acquisitions gathers momentum with people being worried about their jobs, particularly if they work for a company that is either acquiring another company or being acquired by one.
You could be forgiven for thinking that we are riding the change, like in a raft riding the rapids of a wild river and that we will get to this workplace rewards stuff once we are in calmer waters.
Right?
Wrong…
There is no inconvenient time for workplace rewards.
Indeed, it could be argued that times of great change and uncertainty are when you need workplace rewards the most.
The bottom line is that you still expect your employees to respond to pressure and to do great work, but it’s wrong to do that without providing some rewards or incentives.
You can still motivate your employees and make your workplace a place that people will want to come to each day. Even if you are restructuring your business, the last thing you want, from a people point of view, is productivity in key positions to slip due to staff turnover.
ltimately, good workplace rewards increase both employee engagement and motivation, and the results go straight to the bottom line. If you invest money in it, you will get a return on investment (ROI).
So how do you make your workplace the type of place that people will want to come to each day and what should your workplace rewards program look like in today’s era of disruption?
Two pertinent questions; so let’s take a look at them from a theoretical basis, as well as dive into a relevant case study to help us answer these questions.
According to the futurist Jacob Morgan, these types of organisations are experiential organisations.
He describes them in this way;
“An Experiential Organization is one that has been redesigned to truly know its people and has mastered the art and science of creating a place where people want, not need, to show up. The Experiential Organization does this by … focusing on the physical, technological and cultural environments.”
What is clear from this is that the experiential organisation, and particularly their “people officers” must have a clear understanding of the fact that appreciation and recognition are key to building a positive workplace culture in which a workplace rewards program will play a fundamental part.
Another key factor is that we now have a multi-generational workforce – consider the following points;
- Baby Boomers, Generation X, and Generation Y, or the so-called Millennials are all in the same workforce together.
- Baby Boomers were born between 1946 and 1964; Generation X (Gen X) were born between 1965 and 1980. Generation Y, AKA the millennials were born between 1981 and 1997, and Generation Z (born after the year 2000) will start to enter the workforce in the next few years.
- Each Generation has different characteristics and features, so your workplace rewards program will need to be designed to take the competing interests of these groups of employees into account.
You need to then look at the types of rewards that you are going to offer employees.
There are two types of rewards that are on offer in a workplace rewards program;
1. Extrinsic rewards. They are, according to a 2016 article in the India Times defined as:
“A tangible and visible reward given to an individual or an employee for achieving something. They usually have monetary value, such as a salary hike, bonus, award, or public recognition.“
They can also be things, such as gift cards and merchandise, but these are rewards that are recognisable and send a clear message to all in the workplace that a particular employee or group of employees are being rewarded for what they have done.
2. Intrinsic rewards. By contrast, an intrinsic reward is something that is uniquely internal, and what is considered a reward to some people may not be a reward to others.
From the organisational viewpoint, intrinsic rewards can go to the heart of the company’s mission or purpose. The rewarding experience people get from that is when they believe in the company’s mission.
In a 2009 Article in the Ivey Business Journal titled The Four Intrinsic Rewards that Drive Employee Engagement Kenneth Thomas argued that employees are, to an extent self-managing and that there are four key steps to the self-management process.
They are:
- Committing to a meaningful purpose.
- Choosing the best way of fulfilling that purpose.
- Making sure that one is performing work activities competently, and
- Making sure that one is making progress to achieving the purpose.
What follows from this is that if an employee commits to these in a positive way then the positive emotional charge that they receive from that commitment is, of itself, a reward.
There is little doubt that, in terms of a workplace rewards scheme for all or part of an organisation, that a scheme based on extrinsic rather than intrinsic rewards is preferred as the beneficiaries’ activities that led to the employee receiving the reward can be objectively measured and it can be recognised across the organisation.
It is important for HR, the “people officers” of an organisation, to understand the individuals receiving the reward and personalise them to the greatest extent possible for the maximum possible impact.
Returning to the concept of the experiential organisation;
So what organisations meet the definition of those where employees want to come every day?
One that comes readily to mind is Zappo’s.
The Zappos Company, is an online shoe and clothing shop based in Las Vegas, Nevada. They were acquired by Amazon in 2009, one of Amazon’s largest acquisitions at the time.
Their approach to hiring is unconventional in that their chief hiring criteria is whether the candidate will fit into the company culture.
Similarly, their workplace rewards programme is unconventional in that it’s decided by peers rather than management.
The key benefits available to employees or “Zapponians” as they are called are:
- Zollar Program; Employees can earn Zollars or “Zappos dollars” for participating in training by answering questions or volunteering to help out. This play money can be used to redeem Zappos branded schwag, such as a gym bag, desk fan, or water bottle, which is only sold through the company’s internal Zollar Store.
- Master of WOW Parking; Another way to recognize a Zapponian is to award them the “Master of WOW Parking.” This gives the employee the right to a covered parking spot for a week.
- Coworker Bonus Program; Employees can reward each other with a $50 coworker bonus.
- Hero Award; The Zappos HERO Award works in conjunction with the Coworker Bonus Program. A Zappos HERO is an employee who embraces the company core values to the fullest.
A well-structured workplace rewards program can do wonders for improving employee engagement and morale and can aid in decreasing staff turnover as employees can see that they are being recognised for their hard work.
In today’s uncertain times this is more important than ever before.
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