Logging on to rewards, recognition

The most common complaint about technology is that it creates more work than it saves. But HR professionals can offer extensive programs, with low administrative costs and minimal effort, as a result of online programs and services.

Motivation, morale and retention are on the agenda of every HR professional. Rewarding employees can help address these important issues. In particular, multi-tiered reward programs that help retain valuable employees are increasingly imperative to success.

So why don’t all organizations have employee rewards programs? There is a perception that the programs are expensive and time consuming. Program development, administration, measurement and execution of employee programs require time, money and labour. Mired in trying to fix the problem of employee dissatisfaction, organizations are often unable to look ahead to new programs that improve retention.

In the last decade, many organizations have adopted the practices that have been successful in Japan. Japan’s economy rose within the international community as a result of a productive and dedicated workforce. Although there were cultural influences at work that helped, at the core was a commitment and sensitivity to the needs of employees. Many companies learned from this model and used recognition and appreciation to adapt to the changing labour market.

The employee recognition and appreciation approach is far less costly, and the results are generally much better, than simply raising salaries. Many corporations put emphasis on retaining rather than training new employees. In addition, the breadth of programs became greater, reflecting the diverse nature of large and complex organizations. Rather than providing basic recognition programs for years of service, an entire array of employee reward programs were set up such as safety, quality control, budget achievement, sales bonuses, spirit awards, attendance and training.

Does this mean companies now have larger HR departments to draw from? On the contrary, many have maintained administration levels while increasing program breadth by using technology. More programs are being conducted today then ever before — all of which are designed to reinforce and reward employee behaviour. But how can companies offer more programs without adding staff?

The solution has been online technology, and its specific adaptation and application to employee reward programs. Since almost all HR administrators have Internet access, online administration has served as the foundation. By using simple spreadsheets, information can be instantly documented and stored for easy access. In addition, the ability to do “real-time” budgeting means trending and forecast projections will be more accurate.

Regional or branch offices can now send and receive information to and from the central administrator with a simple e-mail connection and document attachments. Letterhead templates can serve as an electronic reward certificate, saving delivery costs and speeding up the communication process. It doesn’t matter where employees are located. They can be in a company office, working from home or in transit. Reward recipients can be contacted by e-mail — which once again reduces mailing and shipping costs.

Many HR and sales departments are unfamiliar with the employee rewards processes, programs and systems at their disposal. Some prefer to stick with the “tried-and-true” methods that may minimize the breadth of programs. In other cases, budgetary restrictions preclude the use of new HR practices. Some companies are simply averse to technological adaptation. Whatever the reason, a solid technological application for a successful employee reward program will ultimately dictate its success.

Keep in mind that online-based employee programs and services vary. Some companies offer catalogue-based reward programs from which employees select rewards. Others order single merchant gift certificates online. Others offer online ordering and redemption. This gives organizations the opportunity to offer generic gift certificates as a reward, allowing staff to redeem them online for original merchant gift certificates for things like hotels, restaurants, entertainment, and clothing. This type of program is of value to the administrator because it saves time from both an order and a redemption standpoint and is flexible for any application and for any department. The employees are the real winners because they can choose the gift certificate and purchase the items they really want.

With the advancement of technology, and the development of specific programs and services created for employee programs, HR now has cost-effective tools to address key issues such as motivation, morale and retention.

Bill Gray is the director of sales for Giftcertificates.ca. For more information, visit www.giftcertificates.ca.

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