In a competitive business environment, more business owners are looking to improve the quality of their output while reducing the total costs.  In this instance, businesses need to get more from their employees. At the same time, however, employees also expect more from the business that has hired them. 

Employee recognition and reward program is a method that allows businesses to change the behaviors of employees and have them motivated to be more productive for the business. To understand how small businesses can leverage from these methods and strategies, you need to first understand the difference between reward and recognition. 

Reward Vs Recognition

Even though many people will use recognition and reward interchangeably, it is better to categorize both of them separately when trying to implement a system. Employee reward systems are usually a procedure system that allows businesses to reward their workers and motivate them on group or individual levels. 

They are normally considered separate from salaries, but can also be monetary in nature in which a company will have to account for a cost. Businesses have also begun to implement employee recognition programs as a tool to draw appeal to the best and most qualified employees. 

This not only helps businesses attract good workers towards their business but also helps increase their efficiency in a competitive job market. Nonetheless, employee recognition programs are often combined with reward programs despite having different purposes. 

A reward program helps put out a psychological reward of financial benefits. Regardless of being different in nature, the elements of designing and maintaining the recognition and reward system are similar. Therefore, it is useful to keep their differences in mind when trying to implement the system. Both of the strategies are great for motivating the staff while reducing the overall cost. 

Differentiate Reward Programs from Performance Appraisals 

When a business is creating a reward program, the HR managers and owners need to set aside the monetary incentives. It requires businesses to distant salaries from regular basis financial rewards such as bonuses and commissions. By doing so, managers can avoid a sense of entitlement on the part of the employee, and ensure that the reward encourages extraordinary achievements and excellence. 

Pay increases due to merit should not be a part of the employee reward system.  This is because they do not particularly have an impact on motivating employees and encouraging them to perform beyond their limitations for a company. This is because when implementing this reward system, the distinction between a good employee and an average one is very small. 

In many businesses, teamwork is a critical aspect and needs to be reinforced. Thus, a reward system can reflect an employee’s compatibility and coordination when working as a part of a team. On the other hand, merit increases focus more on individual job performances without looking at achievements within a group or business. 

Designing a reward program 

When creating a reward program, a business must keep in mind some of the key elements. Businesses must determine the desired behavior, value, and achievement that they want from their employees. After identifying this, businesses need to find the best reward system which will precisely reinforce the particular goal. 

 After creating a reward and recognition program, new businesses have to move into the phase of trial and error. This will require them to apply the system and judge whether the performance of the team has improved. Since rewards require businesses to spend time and money, a small business owner must to sure that the performance has indeed improved. 

Oftentimes, analyzing a reward system’s performance thoroughly requires measuring financial returns along with other impacts. These can involve reduced defects, quicker deliveries, more customer satisfaction, and more. When developing a reward program, a business owner should ensure that the system is easy to comprehend and follow. 

The specifics of the system should be integrated in the daily tasks and procedures of the employee. If an employee does not understand the reward system, they will be unable to adhere to it. You can also promote the system through different means such as meetings and memos.  

Types of Reward Systems 

There are different types of reward systems that a new business can implement. For instance, variable pay, which is you can put a small fraction of a worker’s pay under their achievement. Variable pay takes shape in many forms. These include bonus structures, one-time awards, and stock options. Many companies use variable pay methods to get the best out of their workforce. 

Final Thoughts 

Similar to variable pay, there are many different types of reward programs. A recognition program may require workers and HR representatives to make extra efforts and receive fewer intangible returns. Employees not only want monetary benefits for their work, but also recognition for their work. This is where recognition programs come into play.

Written by Callum Jackson

Source: TG Daily – How Small Businesses can Utilize Reward and Recognition Systems to their Advantage

The onset of widespread social media adoption has democratized and enhanced the functions of human resource management. Today, many factors lead to changes in compensations, employee reward systems, and employee recognition strategies. 

Reward and recognition strategies are often subject to internal and external work environments. Factors that drive change in rewards systems and employee recognition can be separated into internal and external contexts. 

Internal Factors 

To understand the internal factors, you have to know about the organizational culture. This culture consists of shared values and assumptions. These influence the way you interact with each other in the workplace. In reward systems, it is very important to take note of the organizational values when you are developing reward systems and considering employee recognition software. 

These values revolve around the desired behaviors of organizational culture and goals. In an organization, there are typically two types of cultures. The first type of culture is entitlement-oriented, while the second is contribution-oriented. 

Entitlement culture focuses more on employees as a part of their family members. It gives way to more personal rewards and heartfelt recognition. The contribution culture shifts focus on the individual and their contribution towards the business’s growth. Both of these are factors that shape the reward system and set it out to particular directions. 

Organization Type – Bureaucratic and non-Bureaucratic  

An organization will likely follow a bureaucratic system or a post-bureaucratic system. In the bureaucratic system, organizations and employees have to adhere to stringent policies and rules. Not to mention, they are also subject to vertical hierarchies. This means that their path to rewards and recognition is standard, and requires overcoming milestones. 

In this type of business, workers have to face rational decisions where rules are followed. On the other hand, organizations that adhere to a post-bureaucratic system have much different company dynamics. In this system, there are fewer hierarchies within employees, and this leads to more transparency between managers are workers. 

In a bureaucratic organization, managers have to set up recognition strategies that are based on compliance and control. This means that the reward system will be focused on adherence to company rules, procedures, and policies. Alternatively, a post-bureaucratic culture endorses reward systems that recognize the individual capabilities of workers, and recognition is much more fluid. 

In the bureaucratic organization, multi-grading structures and pay spans take place. This means that employee salaries may increase due to the longevity of their service. In post-bureaucratic organization, there is a much broader graded structure; employees earn rewards according to particular achievements.  

In addition to that, the post-bureaucratic system also applies compensational benefits that reflect the needs of the individual employee. Hence, in this organizational culture, the types of rewards can also vary accordingly. Overall, the bureaucratic system is much more standardized, while the non-bureaucratic system is more open-ended and involves the aspect of networking. 

Business Sector 

The industry sector in which a business operates is also a key driving factor that shapes employee recognition and reward system. Each different business sector has its own set of values and ethos which reflect deeply in the employee recognition program. Furthermore, each sector also has its own rules and based on those rules, HR representatives and managers have to implement reward strategy practices. 

Work Environment 

Work environment is a factor that plays an over-arching role to enhance the performance of an organization. Some areas of a business require good cooperation and teamwork, while other areas may require individual achievements. You have to focus on piece-rate systems, along with multi-skilling strategies when implementing a reward system in that company. 

When implementing a new employee recognition system, you are more focused on attracting high-quality workforce. These are usually workers that have the knowledge of technologies which impact grades and pay structures. 

Occupations 

People’s occupation is another important factor that can determine grades, pay structures, incentives and rewards. There are different types of employees in a business. Some work in sales, while others may work in support or production. For instance, a sales representative focuses more on commissions and incentives, while others are more focused on getting salaries and climbing up the hierarchal corporate ladder. 

Business strategy 

This factor refers to a business’s intention, and goals. It keeps a tab on what the organization plans to do in order to fulfill their core value. If the organization is focused on attracting high-quality people, then they may use a competitive reward system that leads the market. Similarly, other values will lead to different strategies that positively reinforce workers to work towards that value. 

Final Thoughts

As you can see, these are core factors upon which employee recognition and reward systems experience change. As the workplace is moving towards digital applications, factors such as business types and strategies have also changed, which manifests a completely different reward and recognition system. 

Written by Lara Harper

Source: TG Daily – Factors Driving Change in Employee Recognition and Reward System

Philadelphia is a huge, densely populated city with a large population of people who commute over vast distances. In Philadelphia, motor vehicle accidents are the leading cause of injury-related death. In 2015, 936 people died in motor vehicle accidents in Philadelphia. These accidents happen due to many factors, such as speeding, failure to yield, or drunk driving. Some of the most common types of accidents that happen in Philadelphia are single-car crashes and head-on collisions.

Motor vehicles can be devastating. It brings severe injuries and can become a life-changing event. In addition, the financial and emotional burden of a motor vehicle accident can also drastically affect an individual. Therefore, if you have been injured in a motorcycle accident, especially when due to another person’s negligence, then it is essential to hire Philadelphia, PA personal injury attorneys to protect your rights and get the deserving compensation.

Let us now see the most common types of motor vehicle accidents reported in Philadelphia.

1. Motorcycle accidents

Motorcycle accidents in Philadelphia increased by 16% in 2021, making it the fourth-largest increase in the country. With over 700 motorcycle accidents, Philadelphia is ranked second in the nation for the number of crashes with fatalities. The increase is due to a combination of factors, including more motorcycles on the roads, higher rates of alcohol use, and a lack of understanding among drivers about how to handle sudden situations involving motorcycles.

2. Car Accidents

In 2021, the number of car accidents in Philadelphia was projected to reach a record high. More than 1 million people are expected to be injured. With such a staggering amount of people at risk, the Department of Health and Human Services suggests that all drivers should take extra precautions to avoid such fatal accidents.

3. Bus accidents

Many bus accidents in Philadelphia are caused by drivers who lack experience. This is because many of the buses in Philadelphia are operated by independent contractors who only work part-time. These drivers aren’t required to undergo any special training or licensing, and they often drive the same route daily.

4. Commercial vehicle accidents

In the year 2021, the number of commercial vehicle accidents in Philadelphia was on the rise. This is a national trend and not just confined to Philadelphia. Many factors can be attributed to these increased numbers, such as driving under the influence, distracted driving, and the increasing popularity of autonomous vehicles.

Written by Barbara McGee

Source: TG Daily – What are the Most Common Types of Motor Vehicle Accidents Reported in Philadelphia?