How Employee Benefits and Rewards Contribute to a Purposeful Company Culture
In today’s war for talent, some companies find it easier to attract candidates than others. Why? It’s simple — they have a strong employer brand and a culture that people want to be part of.
When we asked employees throughout Europe how important company culture is when deciding whether to stay with their current employer or seek a new one, an incredible 59% of participants in Denmark and 54% in the Netherlands say it’s extremely important. 50% of participants in the UK, 48% Germany, 42% in France, and just 26% in Sweden also say that culture is extremely important.
The value of a purposeful company culture cannot be exaggerated. Employees feel connected to the company and feel driven and motivated to work because they believe in what they are doing and feel that what they do has meaning.
Vision and Values Are Important But…
To create a purpose culture, most employers understand that they need to align employees with the company values and familiarize them with its vision and mission. As we share in our post 4 Tips for Creating a Culture Where Employees Thrive, employers need to find ways to help employees understand and practice the company’s core values.
However, no matter how clear a company’s vision is or how well-meaning its values are, these things quickly lose their impact if employees don’t feel appreciated or are not rewarded for their efforts.
Maintaining Culture Through Reward
Many companies have spoken of the difficulties maintaining a sense of culture during the coronavirus pandemic when large sections of their workforce have been working from home. As one article explains, companies have had to find ways to remind long-term workers what the company stands for while simultaneously instilling culture into the hearts and minds of new starters. This is when reward enters the picture.
Two keys to creating a purposeful culture are reward and appreciation, both of which are interlinked. While many employers may say they appreciate their employees and that employees are their number one asset, if employees don’t experience it first-hand, such words lose their meaning. Luckily, even at a time when many employees are working from home, rewards and benefits enable employers to sustain motivation and maintain culture.
Reward Supports Retention
Rewarding employees who demonstrate effort and practice company values helps deepen their connection with their employer and increases their feelings of appreciation.
When effort and commitment are rewarded, greater effort and commitment will follow. For example, one study reveals that 90% of employees say they would stick around longer if they feel appreciated for their work. Furthermore, 82% of employees say they are willing to work harder if their bosses appreciate them.
On the contrary, as one Forbes article shares one study reveals that 66% of employees say they would “likely leave their job if they didn’t feel appreciated”. Among millennials, the number of employees who’d leave if unappreciated jumps to 76%.
Put Your Money Where Your Mouth Is
To create a purposeful culture, employers need to align employees with its values, vision and mission and simultaneously reward them.
As website Positive Psychology.com explains, whether it’s in the form of salary, benefits, or other rewards, such as extra vacation days, the best form of positive reinforcement in the workplace is money. Monetary rewards can include, for example, extra parental leave, bonuses, employee discounts, or any supportive benefits that help simplify employees’ everyday lives.
Another way to increase feelings of appreciation is to make employees aware of how much you have invested in them. By presenting employees with a visualized breakdown in the form of a total reward statement, employees can see the true value of their compensation package, including benefits and extra add-ons that their employer invests in them. To learn more about total reward statements, download our free whitepaper.
Never assume an employee knows how much you appreciate them. And remember, appreciation goes a long way in creating a positive, purposeful culture.