Boosting Morale Cost- Effective Strategies to Keep Employees Motivated and Engaged

Boosting Morale Cost-effective strategies to keep employees motivated and engaged

By; Sharon Aschaiek

In today’s halted economy, employees are worried about job security, and workplace morale is low. Yet to stay competitive, especially in tough times, it’s important for companies to have motivated and involved workforces.

For businesses struggling in the economic crunch, however, how can they do cost-effective employee engagement?

Many budget-conscious employers wanting to improve both morale and the bottom line are turning to employee incentive company I Love Rewards. The company’s pay-for-performance programs reward employees only when they generate new business or cut costs. As rewards, staff receive points they can use to purchase brand name products, gift certificates or experiences through a rewards website. The site feature everything from Apple 2 GB shuffles for 19,500 points, to Weber BBQs for 62,000, to Carnival Cruises for 318,000. Employers pay no administration or program fees, only one penny per each point their staff redeem; companies must purchase a minimum of $10,000 to $25,000 worth of points up front, and most spend from $80,000 to $100,000 per year.

“Employees no longer want crystal vases for their 10 years of service,” says I Love Rewards CEO Razor Suleman.” Our system aligns Rewards to the success of the business. Employees can use points towards things they really want- movie certificates, gas cards, books and so on.”

In the company’s I Save I Earn program, every time an employee saves the company money they receive 1% of that amount back in points.

The Rock Stars program, meanwhile, awards points to employees who bring in sales leads. Research Strategy Group, a market research company in Toronto with 18 employees, began using the I Love Rewards programs in October of 2008. In the Peer to Peer program, employees who feel their co-workers are performing well may recommend they receive points.

Their New Business program is designed to encourage employees to generate at least one new business lead per quarter; each lead is woth 10,000 points, and if that lead turns into actual business, another 10,000 points is awarded. In the On the Spot program, meanwhile, senior personnel may distribute 1,000-point cards to employees that feel are going above and beyond their job requirements.

“This is definitely a very cost-effective way of engaging everyone in the business, and its been received incredibly well,” says Cerys de Freitas, associate vice-president and manager of human resources and facilities at Research Strategy Group.

“Now, they are truly living our core values, and they are putting in more effort to get in front of new business.”

She says the programs are motivating historically weaker employees to pay more attention to and adopt the strategies of their high achieving workers.

“They want to know why they’re not receiving points. By learning from the top performers, they begin to understand what it takes to succeed, and start performing to the best of their abilities,” de Freitas says.

Affordable and effective employee engagement strategies are also in effect at DDB Canada, a leading ad agency with 350 employees nationwide.

The company regularly holds simple, inexpensive social events to allow employees to connect informally. Chief among them is Hotdog Friday, a party at which staff can enjoy pop, beer, hotdogs and social time with their peers.

“It’s a way for us to get together in a casual way, chat and tell each other about our successes at work,” says Carole Landry, national director of talent management at DDB Canada.

As well, part of the company’s website is devoted to covering both the professional and personal accomplishments of workers.

“It features stories on employees landing great clients, or even trying parasailing. People really get to know each other and it humanizes our workplace,” Landry says.

Engaging employees on an ongoing basis, Landry says, has been key to driving the company’s productivity and maintaining its low staff turnover rate, particularly during the current economic downturn.

“At times like these, engagement is what sets you apart from other companies,” Landry says. “If people are happy and feel appreciated, they will want to stay and will produce higher quality work. Keeping people engaged is critical to our business success.”

Tags: Employee Morale, Promote Company Values

For more information, please contact:

Sarah-Beth Anders, PR Coordinator
Phone: 416-531-1531 ext. 236
E-mail: sarah-beth.anders@iloverewards.com