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Employee motivation plays a vital role when it comes to achieving the goals and objectives of an organization. In fact, it is a major requirement especially for corporate types who work in a team-based environment. Recognizing and rewarding excellence motivates the employees and this leads to improved work quality, a higher productivity level and financial gains across different departments.

A well-managed reward and motivation system will definitely help you to acknowledge the efforts of your employees and thus demonstrate their importance to the organization. Here is a look into the importance of rewarding and motivating employees.

Employee Retention

According to a study cited in 2009 by SHRM (Society for Human Resource Management), the cost incurred when a company is replacing an employee ranges between 90% and 200% of the annual salary of that employee. Additionally, the process of training a new employee is time consuming and equally costly. This demonstrates the importance of employee retention. A functional and appropriate motivation and rewarding system focuses on mutual respect. This kind of reward system increases employee retention and morale to work even harder.


When workers are intrinsically motivated, and even better motivated from within, they develop a sense of satisfaction in whatever they do. This in turn ignites the passion to work harder and better. Rewarding and motivating your employees can give them a sense of purpose and empower them to tackle even more challenging projects. Other than increasing productivity, motivated employees often strive to improve the quality of output. The improvement of quality and increase in the quantity of output leads to better returns.


Business link explains that motivated employees feel free to incorporate creativity and innovation in their jobs. Innovation helps the business to make strides in the right direction while creativity makes the corporation stand out. New products, great advertisement ideas and effective marketing strategies are often a product of creative and innovative employees.


Rewarding the efforts of employees and motivating them creates an enabling environment at the workplace. With a motivated workforce and a strategic plan, you can easily absorb new employees into your team and also help the weak ones to become strong and offer greater returns. This kind of relationship unites all the units in your team and in turn opens up communication lines for the sharing of ideas and information. Furthermore, a united and motivated labor-force takes the goals of the organization as its own, puts extra effort and functions like a well-oiled powerful machine with the intention of achieving the set goals.



Rewarding and motivating your employees can create loyalty among the workers. Loyal workers use the resources of the company properly and appropriately and go out of their way to maintain the machines properly. This reduces the amount of money a company uses to replace wasted or misused resources. In addition to that, loyal workers can work properly and offer productivity under minimum supervision.

As demonstrated by the above extolled factors, recognizing, applauding and rewarding the excellent efforts of your employees is vital to the growth of your company. So, to steer your business to greatness, start by rewarding and motivating your employees.

Article inspired by: Apply Direct