Motivated and satisfied employees are a very valuable asset to any organization. Rewards can create the much needed impact, especially for companies facing issues related to employee job performance and satisfaction. Studies show that rewards influence an enhanced level of job satisfaction. There are numerous changes in the business world today and every organization has to depend greatly on positive employee performance which is directly related to satisfaction. Reward programs have their merits in developing a highly satisfied workforce, making rewards a key tool to ensure employee satisfaction.
When it comes to rewards, different employee has different perceptions, some consider cash to be sufficient, while others look for luxury enticements such as holidays, cars or apartments and there are also a few who look for non-material incentives. It is one of the most difficult jobs for any company to design an effective reward system for their employees. It is not easy to achieve employee satisfaction with rewards. Today managers have to understand the expectations, desires and requirements of its employees better. The bottom line is that company’s reward system should be such that it attracts new workforce into the firm as well as motivates existing employees to perform better.