Effective Managers Understand Employee Incentives and Rewards

by: Nichole Gunn November 11, 2010

A strong and effective business needs a strong and effective management team. Michael Hutchinson, writing for Fort Worth Business Press, notes that an effective management team needs to be developed through management training programs that include employee rewards strategies.

Incentive programs and employee recognition is an essential factor that managers need to understand. Hutchinson advises that successful workplaces create an environment that allows the employees to ‘feel’ appreciated and valued by the company. Employees want to know that their input, effective ideas, self-motivation, and other efforts initiated on their part will be rewarded.

Hutchinson goes on to explain that managers need to be taught how to be managers; this includes skillfully monitoring employee activity and results. While it’s easy for managers to tell that an employee is working, they need to be adept at comprehending the results of the work produced, along with being able to determine which workers are the most effective.

Rewarding employees who work effectively is a useful tool in motivating other employees to follow suit.

Turnover and employee retention are other areas in which management plays an important role. Ensuring the employees’ content in this current economic and job market will be vital to big and small businesses. “A recent BNA study found that employee turnover increased in the first quarter of this year, moving in sync with a corresponding rise in payroll employment.”