Why organizations reward employees?

Reward is a compensation an employee receives as an appreciation for the performance he or she offered in an organization. Every organization or business aims at reaching targeted goals within a specified period of time, the achievement of these goals depends on altitude of the workers. Reward is a very important instrument to be considered by leaders or managers to develop positive altitude within employees toward pursuing the organization goals. 

The following are the reasons for why organizations consider rewarding their employees;

1. To retain employees

Every firm would not like to lost their best employees who contribute in achieving organizational goals. Rewarding makes employees feel valued and prevent them from leaving a job (turnover).

2. To reduce absenteeism

Unmotivated employees may not attend properly at the workplace or come late at work simply because they are not interested in a job. Provision of rewards can motivate the employees to work and reduce absenteeism in an organization.

3. To improve performance

The output or productivity in an organization depends much on how employees perform their jobs. If the job is performed at high level, the output and profit will increase but if performed at lower level the output will decrease. Rewards play a big role in boosting the working morale and improving the job performance especially when employees are assigned hard tasks or tasks which they're not interested in.

4. To facilitate organizational changes

Changes and adoption of new process (for instance the use of new technology) improve efficiency in an organization. Some unmotivated employees may resist to align with these organizational changes because they lack desire to learn new methods or new technology. Through rewards, an organization can persuade employees to align with changes and motivate them to learn new technology introduced in an organization.

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