Essay Example on Tangible and Intangible Rewards: The Keys to Employee Retention and Motivation

For any company to remain competitive in their retention and motivating efforts, it is vital to ensure that employees feel inspired and contented. Tangible and intangible benefits are rewards that help workers feel that their performance in the company is meaningful and they are appreciated for better results. Tangible are those benefits which are measurable and quantifiable which are used to weigh the value of a job while intangible are those benefits which are harder to measure because of its subjectivity since it is derived from how one feels.

Tangible benefits include:

Pay raises and bonuses

There is two performance-based work in pay raises and bonuses. First, the worker may feel pleased about the work she does. Secondly, production can increase when employees put more effort to be entitled to more bonuses and pay rates. Bonuses are not supposed to be high but depend on the output of the employee. (Sandhya, & Kumar, 2011). Workers who finish work before the scheduled time are offered bonuses or those who show excellent performance in that they increase sales of the company or improves its productivity.

Insurance coverage

Insurance is very important in a company for employees for instance health and life insurance. Offering at least half of the health insurance and discount on life insurance coverage is an added advantage to them since it is expensive and cannot afford on their own. This can improve the living standard of the employees and enjoy the services offered in the company. This can attract qualified personnel in the company.

Paid Vacations and Sick Leave

Many companies pay a one-week vacation to those staff who have work for not more than one but those who have stayed longer in the business are given two weeks. This offered incentive is important to the workers in that when they are sick, they are paid hence when ill cannot afford to stay at home (Assiter, & Gibbs, 2017). Paid vacation or holiday makes them feel good when on holiday in that they are paid without working.

Intangible benefits include:

Autonomy

This refers to the freedom given to employees in a company. The worker is not given direction on what to do and want to do it. This boosts employee job satisfaction and well-being particularly between women. By applying this, it helps the organization to have top employees.

Recognition

Appreciating work done by employees is an important thing like telling an "excellent job" as an employer. Most of the employees like being recognized even if it is not in monetary terms. It positively influences psychological functioning and well-being of the employee. The reward is one way of motivating workers in an organization. Thank you is also a way of boosting job satisfaction.

Work-life Balance

The key happiness of an employee is to know how to balance time between family life and work. work-balance can have more influence on employees than financial reward and motivation. One way of showing employees that you care about them is engaging in different events together such as work functions and weddings.

Flexible Scheduling

It is very important for many employees mostly for those who have children. Whether it means getting to the job early and leaving early or going late when attending to a sick person or doctor appointments. Flexibility is a must for the success of the work-life balance of an employee and is satisfied.

Additional incentives can increase retention and motivation in an organization.

Improved Working Environment

Today most of the employees are looking for an overall package when it comes to job involvement. They like working in a good environment which is not filthy or without windows. The good organization has good seating arrangements, pleasant artwork, collaborative workstations, live plants and lighting hence translating to better-off of the employees. Changes in an organization are vital to improve the attractiveness and to boost worker mood.

Paid and Unpaid Time Off

One has to take a little time off by working in an organization hence benefiting once for a while. A good company supports time off for its employees for better working by their workers thus providing flexible time-off policies. This will enable employees to balance with their other family work. provision of travel discounts, team outings, and working vacation is essential to allow employees to enjoy themselves.

Company Ownership and Profit Sharing

Adding the profit-sharing program and company stock ownership is a great thing in an organization in that it can bring a lot of benefits. Employees enjoy rewards of profit in the work station hence will work well to enjoy more.

Retirement and Savings Plans

A high number of workers are leaving the workforce every day hence there is a need for strong plans for savings retirement (Glen, 2016). Young employees are earning a good amount of money thus boosting their retirement plans. Most companies set a plan whereby they match a certain percentage of employee's earnings to boost their retirement savings.

In conclusion, the development of retention and motivation is very important in the human resource strategic plan in that it outlines the organization strategies which enables to address workers' motivation. Retaining workers is a key component of a strong company.

References

Sandhya, K., & Kumar, D. P. (2011). Employee retention by motivation. Indian Journal of science and technology, 4(12), 1778-1782.

Assiter, A., & Gibbs, G. R. (2017). Student retention and motivation. European Political Science, 6(1), 79-93.

Glen, C. (2016). Key skills retention and motivation: the war for talent still rages and retention is the high ground. Industrial and commercial training.