In today’s workforce, five generations from traditionalists and baby boomers to millennial work side by side, making it important for the organizations to create an inclusive culture that meets the varying needs of each age group. It seems like everyone has their own opinion on how to make culture great and no doubt, crafting an organizational culture is a daunting task.
In fact, bad workplace culture can result in negative effects like high turnover and declining productivity, and it’s a problem 79 percent organizations share.
So, what do you think can be most correctly referred to as shaping the DNA of a company? Visions, values, business goals; while these are correct answers but rewards and recognition is that one important element which cannot be missed by your organization, if you want to develop a culture as ‘intangible glue’ that binds all employees together. Frequent recognition can positively impact your company culture, not to mention business output.
To share, a study by Bersin and Associates found that employee engagement, productivity, and customer service levels are 14% better in companies where recognition occurs, and companies that actively recognize their employees have 31% lower voluntary turnover rates than their peers.
Maybe you believe that rewards and recognition ideas are a dime a dozen. But the fact is not all of them create lasting impressions. You’ll have a stronger, more successful program if you focus on those ideas that stand out in employees’ minds, now and in the future. And experiences make excellent rewards. Experiential rewards (like learning a new language, going skydiving, or taking a family getaway) change the feelings of appreciation among employees, positively impact their motivation levels, and add contentment to their plans of staying at your company. That’s the power of great memorable experience. The possibilities are endless! Among many things why experiences are more valuable and impactful than any other type of rewards, here are our top 3:-
1. Experiential rewards by nature are short-lived and create healthy long-term happiness
From a meal at a fancy restaurant to a luxury vacation to a skydiving. experiences top the list of memorable rewards. This is because experiences can engage all the senses and create an emotional reaction that you can’t get from, say, a cash bonus or any other material rewards. Although these moments last for few minutes, but because they are so in-frequent, that humans tend to cherish and appreciate them more. On other end, the excitement stimulated from new gadget/clothes tends to fade away quickly into the background with the mind’s adaption of consistently having them around. In essence, an experiential reward is an event that an employee earns, whereas one gets only immediate gratification from the tangible material rewards. Interestingly, it has been found that experiences also correlate with traits associated with higher motivation such as openness and reward-seeking. Giving your employees the gift of positive experience associates their enjoyment with your company, which increases happiness much more than any gift card reward or money would.
2. We enjoy telling stories
More than anything, experiences help to create stories which are inherently shareable. The human brain is wired to compose, remember, and share stories. And so, a reward or recognition ceremony that lends itself to a story is more likely to be shared and remembered. Who would not find it interesting and comfortable to share stories about recent vacation, experience of hand-pottery or night-trekking, vs their last shopping? The stories that a unique or indulgent experience can generate might even become a part of your organization’s lore, gaining a life far beyond the actual award itself. And in fact, experiences also offer high social currency photos or videos for social accounts of millennial workforce. Study shows that millennial prefer experiences over consumer goods which means switching to experiential rewards is a step to create personal reward strategy at workplace that appeals to the generation which will be 50 percent of the workforce in a few years.
“Buying an Apple watch isn’t going to change who you are, taking a break from work to hike the Valley Of Flowers Trail from start to finish most certainly will.”
3. Experiential rewards are personal and become part of our identity
One size never fits all and therefore you need experiential rewards. We all are unique and if you want to show your employees, you really care for them, then you need to make recognition personal. Because earning means more, when it’s exclusive. Experiential rewards that resonate with their interests, hobbies, or that help them check something off their bucket list are a great way of expressing that you value the work that they individually contributed to. In fact, experiential rewards can help your people position their personal character and can become a catalyst for bonding at workplace, especially when forming new relationships. Think how easy it would be to strike off a conversation between a tech guy who likes to go on foodie tours and a finance guy who likes to go on kayaking trips, if they can share their stories of memorable experiences with their co-worker peers which their organization rewarded them. Gallup shared that employees with work besties are 27% more likely to feel that their job is important. Also, study shows that there exists a multiplier dynamic associated with sharing experiences. It can spark other neurochemicals, particularly those related to happiness and goal-seeking, which is an added benefit for any organization’s turnover.
So what should be your next step?
True appreciation means feeling valued for your ideas, your opinion, your work, and your sacrifice. Try recognizing your employees in a new way, and see the difference it makes in your workplace and culture. Build positive experiences into your team’s workday everywhere you can.
Consider offering individual experiences, or team building events and off-sites for the whole group. Experiences have a larger positive effect on sustainable growth and happiness than material rewards.
Check out Xoxoday’s Experiences Section and allow us to help you in thanking your employees.
The post Why Experiential Rewards Are The Best Motivators For Your Workforce appeared first on Enterprise Blog for xoxoday.