Reward and Recognition
Staw, (1980) argues that reward systems ought to be a significant sphere of innovation
for employers. The increasing diversity of the workforce, she says, suggests the need for
more creative approaches to tailoring the right rewards to the right people. It would,
however, be impossible to list all of the various types of recognition and rewards that
companies actually give their workers. Nevertheless, it is clear that reward and
recognition as part of a more comprehensive effort at keeping workers or adopting good
workplace practices can contribute to increased retention. The category “Reward and
Recognition” is in some ways a catch-all phrase as it includes a diverse range of formal
and informal, financial and non-financial, incentives given to individual employees,
groups of employees or to an entire staff (Moses, 2000). They come in all shapes and
sizes: small employee of the month awards (for example, gift certificates, recognition
plaques), company-sponsored sports teams, company parties, prizes, clothing, etc. They
are often incorporated into a company’s overall Human Resource policy, but are just as
often awarded “as the need arises” and at the discretion of middle-level managers or team
supervisors (Moses, 2000).
To function properly, rewards must be well justified, everyone must have a fair chance at
getting one, and that reward must be something that the recipient employee values.
Everyone who keeps the company productive deserves a fair share of awards, interesting
new assignments, honours or other motivational treats that the company hand out. Morale
will plummet if employees see the employer as arbitrary, unfair or playing favourites
(Staw, 1980). Hom and Griffeth, (1995) cautions that used incorrectly, rewards,
recognition, praise, and bonuses can be manipulative and controlling and amount to little
more than a bribe for behavior. In many instances, these behaviorist techniques create an
effect opposite from that intended. It is true that rewards can undermine intrinsic
motivation. It is unfortunate to see companies wipe out initiative and turn their employees
into Pavlov’s dog sitting ready for the next bone thrown their way. Hom (1995)
concludes by stressing that “goal-setting and training” ought to have a greater impact on
productivity than rewards and recognition).
Providing skill recognition of personal job accomplishments is an effective retention
strategy for employees at any age (Yazinski, 2009). Studies indicate fulfilling peoples
need for acceptance by acknowledging individual work accomplishments prolongs
employment of employees (Redington, 2007). A Study by Yazinski (2009) show trends
of an increased number of job applicants seeking out companies that encourage employee
input, growth, education, and teamwork, beyond the traditional compensation/benefit
packages offered by employers. The Gale Group (2006) states organizational benefits of
personal recognition are priceless, yet statistics supports that the impact of verbal praise
has the ability to enhance company loyalty, motivation, and perseverance at no extra
charge. Individual skill recognition is restricted by age, and motivates positive behavior,
ethics, teamwork, confidence, and growth in all employees (Redington, 2007). Thus, both
skill recognition (ranging from verbal praise to incentives/rewards) and learning
opportunities (growth/development) enhance individual performance, effectiveness, and
retention (Agrela, et al., 2008).
Training, Development and Career Planning
The best talent is focused on advancing their careers. For employees to prosper and grow,
they need to be encouraged to reach their full potential. With Success. Factors Succession
& Development, you can increase employee engagement, foster professional growth and
development, and maximize career opportunities for top talent, making your company the
employer of choice (Breaugh and Mary, 2000). A business that provides education and
training will be more competitive and productive and will win the loyalty of its workforce
(Charles, 2009). That training and development are so enthusiastically embraced as key
factors to good retention is no doubt due to the fact that well-developed training programs
are becoming ever more essential to the ongoing survival of most modern companies,
whether or not retention is an important issue to that company. To the extent that
operational paradigms such as “The Learning Organization” or the “Knowledge-Based
Organization” continue to take hold in the contemporary business world, training is only
likely to become more important.
Training is a crucial investment and not a cost in theoretical and practical knowledge of
skills to excel. Offering training to upgrade skills in the work and clarity of expectations
is key (Mizell, L. 2005).The fact that providing it also turns out to be a benefit that is
highly valued by those who receive it makes for a very powerful approach to doing
business. Because training and development are so fundamental to the operation of a
business, it goes against intuition to suggest that training and development are to be
thought of primarily as “retention” tools. We have encountered few examples in which
the development of skills at work was ever consciously introduced as a way of retaining
people. Nevertheless, countless studies tend to confirm the fact that a good part of the
satisfaction or dissatisfaction of workers is associated with issues related to their
professional development (Siebert & Zubanov, 2009). Meyer et al (2003) suggest that
employee learning which encompasses training and development but is also related to
socialization within the workplace contributes to retention by: building employee
commitment through a show of support; providing employees with the means to deal
with stress related to job demands and change; serving s an incentive to stay, and
creating a culture of caring. Thus, training and development are seen as ways of building
employee commitment in that they allow employees to “see a future” where they work,
and provide them with the support necessary to face the on- going challenges related to
their work (Meyer et al 2003). Many employers will of course voice the familiar concern
that there is a risk that once trained; workers may be tempted to leave the company for
other opportunities. This is no doubt a valid concern amongst many employers,
particularly those in the brewery industry where even semi-skilled workers often operate
in a high-demand labour market. As such, companies are only willing to provide training
at the minimum level or to provide more extensive training on proprietary equipment and
processes. The picture may be somewhat different for more highly-skilled skilled
segments of the workforce, where employers appear to be more willing to make greater
investments (Starosta, 2006).
There is a good fit between training and a number of other retention-related practices,
such as career development and planning, skill-based pay, and others. Taken together
such practices can usefully complement one another. Training can be a particularly strong
retention tool when it is combined with measures designed to allow people to develop
and progress within a company (Butteriss, 1999; Meyer et al, 2003). It is important for
employers to put in place effective internal promotion programmes that will allow even
their unskilled and semi-skilled workforce to move towards positions of greater
responsibility and remuneration within the company. Training is always unique to the
circumstances of each company, and there is no method or formula that dictates how
much and what kind of training is given. No evidence has been found to suggest that
specific forms of training or training content were necessarily more conducive to good
retention, nor is any type of training necessarily conducive to retention. However, it does
seem plausible that training, when combined with well-communicated plans for
advancement and ongoing professional development within the company, can help
companies to keep their valued employees (Walker, 2001).
The purpose of career planning as part of an employee development program is not only
to help employees feel like their employers are investing in them, but also help people
manage the many aspects of their lives and deal with the fact that there is not a clear
promotion track. Employers can no longer promise job security, but they can help people
maintain the skills they need to remain viable in the job market (Moses, 1999). Eyster, et
al. (2008) state that job flexibility along with embracing career and life options, is a
critical incentive for all employees. Research shows growing trends of employers
providing greater job flexibility that includes flexible career options (i.e. training,
mentoring, workstation accommodations, job mobility, and reduced work hours) and life
options (i.e. counseling services, health and wellness programs) (Boomer Authority,
2009; Eyster, et al., 2008). The challenge to organizations is that they must accept that
this process may lead some employees to leave the company and pursue outside
opportunities (O’Herron & Simonsen, 1995).
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