How do rewards and benefits make employees more productive?
The link between rewards and benefits and productivity
It’s acknowledged that a business operating in different countries will not be managed or run in exactly the same way in every country. There are differences in management styles, corporate culture, and country culture itself, which can extend through to laws and political stances. It can also be the case, therefore, that certain employees in certain countries may not know exactly what their employer has to offer in terms of work benefits.
Results from our The Future of Work Report shows that almost 20% of UK respondents say they have very little knowledge of their total reward package. In contrast, results show that German and Danish respondents believe they are most knowledgeable about their compensation and benefits, with an impressive 65% and 62% respectively. These maybe-not-so-surprising but radically diverse figures show the differences between not only workplaces, but also work culture in different countries.
But what is the effect of employees not knowing their true value at work? During recent difficult times, there’s never been a more urgent need for companies to offer relevant rewards and benefits that save their employees money…and these rewards and benefits don’t need to be complicated.
How do benefits make employees more productive?
Several studies show that offering employees even a simple reward or benefit can increase productivity and wellness.
An experiment conducted by the Social Market Foundation and Warwick’s Centre on Competitive Advantage in the Global Economy confirmed this to be true. They exposed random individuals to three so-called “shock” experiments where they were given work tasks. In the first two tasks, the participants were shown a comedy film at different times. In the third task, the participants were offered fruit and snacks as their “mood induction procedure”, something which mimics the practices of many businesses across Europe. The participants were then asked to solve some mathematical problems in exchange for a financial reward after ten minutes.
After the experiment, the results were clear. The productivity of the participants who were offered fruit and snacks was boosted by almost 20% for the short ten-minute work task compared to the placebo control group of participants. This result seems to suggest benefits do increase productivity and are really important to employees.
Now, this isn’t just a simple matter of fruit and snacks at work. Employers want to go further with their benefits offering and ensure that employees know what they are entitled to and what the true value is.
This is where digital benefits solutions can help make employees feel valued, as well as save money through rewards and benefits. Not only have digital and mobile-enabled platforms reinvented the way modern employers engage with their employees, but easy-to-use communications allow HR professionals to easily connect with end-users at various touchpoints. With this, employers can deliver personalised communication to their employees.
In our The Future of Work report of 39,000 employees around Europe, 28% of participants in the UK said they needed clearer information about their benefits. Want to know more about the future of work? Download The Future of Work Report: Employee Benefits and Work Trends in Europe.
This article is provided by Benify.
Original article: How do rewards & benefits make employees more productive.
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