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The Basics of A Successful Employee Rewards Program
The Basics of A Successful Employee Rewards Program
The Basics of A Successful Employee Rewards Program
Rewards Program
Reward strategies should be based on years of research dedicated to studying the effects of
rewards on employee performance, not the managers preference or intuition. Below is
information explaining the components of successful employee rewards programs.
Schedules of Rewards
Considering when to reward an employee is critical in ensuring the reward system has the
largest possible impact on behavioral change. In many cases, the schedule of reinforcement
can actually be more influential on behavioral change than the magnitude of the
reinforcement. There are two types of reinforcement schedules:
Continuous reinforcement
Continuous reinforcement is when every target behavior is rewarded. An example of this is
paying a bonus every time an employee reaches a performance target. This type of
reinforcement schedule is very effective in quickly shaping employee behavior when
starting an unfamiliar task.
Intermittent reinforcement
Intermittent reinforcement is when the reward does not follow every target behavior
response. This type of reinforcement will result in higher frequencies of the desired
behavior. It is effective in maintaining the desired behavior after it has become a habit.
There are 4 types of intermittent reinforcement schedules and each has a different impact
on employee behavior:
Start a new task In this initial stage of work, rewards serve to promote buy
in to start a new task. Rewards increase an employees motivation to start a
new task by 15%.
Persist In this middle stage of a task, rewards serve as motivational
maintenance. They will contribute to an employee persevering in the face of
distractions, challenges and competing work tasks. Rewards increase
employees motivation to persist on a task by 27%.
Work smarter In this stage of a task, rewards serve to increase the quality of
the performance on the task. They will contribute to the employee investing
more mental effort, thinking of creative approaches to solve problems and
strategies to be more effective and efficient. Rewards increased working
smarter by 26% in employees.
In sum, rewards have significantly less of an impact on an employee starting a new task
(15% increase in performance), than they do in motivating them to persist at the task (27%
increase in performance) and to work smarter on the task (26% increase in performance).