Rewards and Recognition in BPO

Motivating Employees for High-Performance

High turnover is frequently observed in business process outsourcing (BPO) companies most of the time because many employees lose motivation because of monotonous tasks given to them. There is nothing as powerful as having a reward and recognition system in place, they motivate the employees and make them work harder. The above statements on the importance of reward and recognition in BPO segment may be examined in the light of Herzberg’s two- factor theory. From the Herzberg theory, he pointed out that employee satisfaction can be divided into two types of needs; the hygiene needs and motivation needs.

Hygiene Factors

Hyguene factors are considered as the factors that are required for workplace motivation. These factors can bring short-term satisfaction, but when they are absent, they lead to dissatisfaction. These hygiene factors include salary, interpersonal relations, company policies and administrations, supervision, and working conditions.

Motivation Factors

As per Herzberg, the motivation factors lead to employee satisfaction because they satisfy the needs for growth. Factors such as recognition, responsibility, and work advancement come under motivation factors.

In the context of BPO, even though hygiene factors prevent dissatisfaction, in order to motivate employees in the long run, BPO companies should focus on implementing recognition strategies that help for personal growth, which Herzberg associates with rewards (Herzberg, 1966).

Impact of Reward on Morale and Performance

Initiate effective reward system benefits not only to the customer but finally to the organizational performance. It makes employees valued and motivated them to work harder, and finally they want to stay longer with the company. Finally, it will lead to higher profits, higher productivity, lower turnover, and higher engagement.

Best Practices for Implementing Reward Systems

1. Monetary Rewards
   
   
   

Monetary rewards, such as any kind of financial payment, can be provided to the employees as recognition of their work. These rewards include a bonus (extra payment in addition to their salary, such as a performance bonus), allowances (any kind of annual lump sum, such as transport allowances and distress allowances), or profit sharing (a portion of company profit or employee shares that they can sell).

2. Non-Monetary Rewards

Non-monetary rewards refer to the benefits received from the organization, excluding direct financial compensation. Flexible working arrangements and workplace perks such as coffee, free snacks, or on-site daycare centers come under non-monetary rewads.

3. Social Rewards

Social rewards often link with emotional needs and focus on creating a positive work culture. These reviews include programs such as employee of the month and public praise during company award ceremonies.

4. Assistance System

In order to support employee physical and mental health, organizations can promote assistant programs such as wellness programs, including stress management workshops, gym memberships, and discounts on medical checks.

References

Armstrong, M. (2011). Armstrong's Handbook of Human Resource Management Practice. Kogan Page.

Grant, A. M., & Parker, S. K. (2009). Redesigning Work Design Theories: The Challenge of Designing for Viable Work.

Herzberg, F. (1966). Work and the Nature of Man. World Publishing Company.

Kuvaas, B. (2006). Performance Appraisal Satisfaction and Employee Outcomes: A Study of a Norwegian Sample. International Journal of Human Resource Management, 17(3), 430-447.