New research from Investors in People and economic research consultancy TBR has highlighted how rewarding staff is essential to successful workforce management.
It revealed that poor people management costs UK companies £84 billion a year.
According to the study of 8,750 businesses the health and social care industry stands to gain most by changing how it manages its staff. This could contribute a potential £2.4 billion to the sector in productivity gains.
The professional and financial services industry could benefit most financially, with the study revealing it which could gain an additional £29.9 billion in output.
The analysis found six factors for gaining improvements in efficiency and performance:
- Strong leadership
- Organisation values
- Recognising and rewarding performance
- Structuring work
- Continuous improvement
- Responding to change flexibly
Rewarding staff performance
Head of marketing at Investors in People Thomas Bale emphasised how recognising and rewarding performance can improve operational efficiency.
He said: “Feeling rewarded at work is such a simple thing, but we found it mattered a huge amount. When a business is thinking about its people it is thinking about their performance. The values we identified aren’t a ‘nice to have’ they are a key driver of performance.”
At a time when organisations need to do more with less, managers need to find ways to retain key talent. Rewarding good performance is essential to tapping into the discretionary effort of employees.
Employee recognition through workforce management
Rewards schemes come in all guises. But given the fact that, more often than not, employee punctuality is inextricably linked to performance, managers could do worse than utilise workforce management solutions to monitor performance.
Workforce Management software delivers the powerful analytics managers need to identify whether individuals are adhering to time and attendance policies and procedures.
Greater transparency enables managers to reward those with perfect attendance records, no missed punches, no lateness, reduced absences, overtime etc.
If employees know they are to be rewarded for their attendance it is human nature to strive for perfection. Improving just a small percentage of staff punctuality across an organisation could have a hugely positive impact on the business as a while.
Measuring KPIs to identify top performers
But that’s not all. Managers can gain an even greater insight into staff performance when attendance data is transformed into Key Performance Indicators and used to improve overall operations.
By allocating staff to specific jobs and tasks, managers can track progress of contracts and gain a true understanding of the ‘actual’ work carried out by every employee, from which they can measure their contribution against success and profitability.
For instance, a manufacturer may deliver a critical project under budget and quicker than expected due to the efficiency of the team, resulting in increased profit margins. By drilling down data managers can see every worker’s activities, each shift, minute by minute so they can monitor what’s happening on the front line operations and identify the most efficient and productive workers, and reward them accordingly.
By recognising patterns of performance managers can not only make better informed decisions to optimise the workforce but identify what makes the top performers excel so they can make improvements across the business.
Rewarding employees for their work is a great way of making your workforce feel valued and instilling staff engagement as part of your work culture. To most employees just knowing that their hard work is recognised is enough to improve morale, job satisfaction and loyalty to you as an employer.