Rewarding for Employee Retention and Engagement
The relationships between companies and employees have always been based on money. If people do their job well, they get paid for it. Still, this concept seems to be outdated as money does not inspire people to work more. Staff engagement is no more about the salary; there are other extra ways of treating the staff. This essay depicts rewarding as the most productive method of stimulating workers’ retention and creating engagement.
First, it is necessary to point out two main types of rewards, particularly extrinsic and intrinsic (Agarwal, 2017). The first one includes financial inspiration; the idea of making more money has always been popular and attractive among workers. It is usually represented in bonuses, benefits, and extra grants. This tangible kind of reward has always played a big role in retention and engagement mechanisms as it stresses the employee’s value for the company.
However, the last few years show that extrinsic rewards have become less important workers are more motivated with intrinsic methods. These ways of stimulation include the spirit of competitiveness, the feeling of progress, and the desire to be recognized. For instance, when being involved in a competitive environment, the worker’s performance level is always higher because the main stimulator is above the others (Rashmi, 2016). The vibe of self-pride and fulfillment is the point that is crucial when it comes to the inspiration and retention of an employee. Speaking of the progress feeling, it is important to state that a worker, in this case, has a strong idea that he or she is on their way to achieving great results and getting more knowledge and experience (Luthans, 2016). There are always non-visible signs of this movement, such as exploring new aspects of the job or discovering something new for their general awareness. There is no doubt that it encourages staff members to enhance their skills. Finally, when it comes to recognition, employees are always driven by the idea of their exclusiveness in the face of their colleagues, which is also a good retention instrument. Besides, it is essential for every worker to feel that they are important to the company and that managers appreciate their efforts (Danish, 2020).
In 2015, Apple announced the reward for its workers presented in the form of free shares from $1000 to $2000 each. Moreover, Steve Jobs’s leadership is marked by the spirit of competition between workers who created different products (Podolny, 2020). They were driven by the idea of getting leadership among their colleagues from different sectors. That is why 2015 was the year of breakthroughs as Apple released a huge range of products in each of its categories, from the new version of the iPod Touch and the revolutionary release of the Apple Watch to the new versions of the iPad and iPhone, which got world fame and became unequivocal leaders of the mobile technologies market. It is impossible to doubt that extrinsic and intrinsic stimulation played a great role in the company’s success. There is no other explanation why the company could produce and release high-quality products throughout the year.
In conclusion, it is necessary to note that employee retention and engagement mechanisms are crucial for the successful existence of the company. They stimulate workers, who are ready to do their best for the brand’s prosperity, to achieve greater results and get more profit from it. Rewarding, tangible or intangible, in this case, is the most influential way to inspire staff members as they can see, touch, or feel the product of their work represented in either financial bonuses or spiritual boost.
Agarwal, R. (2017). Employee engagement & retention: A review of the literature. International Journal of BRIC Business Research, 6(1), 1-6.
Danish, A. S. (2020). The impact of employee engagement on employee retention: The role of psychological capital, control at work, general well-being and job satisfaction. Human Resource Research, 4(1), 1-17. Web.
Luthans, K. L. (2016). A positive approach to management education: The relationship between academic psyche and student engagement. Journal of Management Development, 1098-1118. Web.
Podolny, J. M. (2020). How Apple is organized for innovation. Harvard Business Review, 1-25.
Rashmi, C., (2016) Employee retention and commitment. International Journal of Engineering Technology, Management and Applied Sciences, 4, 77-81.