Your company's core values will play a huge role in determining its long-term success. They'll have a hand in your organisation's vision for the future, marketing strategy, its product and service development, investments, and the kind of people you bring on board to join your team.
When your employees understand and are engaged with your core values, your business can truly thrive. That's why building a reward and recognition strategy on the foundation of these values is essential.
What are core values?
Core values are the fundamental beliefs and principles by which your company measures itself and conducts business. They'll be exemplified by your top-level management, right through to entry-level employees. At Incentivesmart, our definition of core values is simply: "Our DNA, who we are, and who we aspire to be."
Why should your reward and recognition programme include your core values?
The simple answer to that question is that you want your employees to be engaged with your company for the right reasons. One of the most effective ways to accomplish that goal is to base your reward programme on your brand's core values. In fact, a report from the Society for Human Resource Management and Globoforce found that "values-based employee recognition significantly contributes to bottom-line organisational metrics and helps create a stronger culture and more human workplace."
As a simple example, let's say that teamwork is a core value for your business. If an employee really demonstrates their flexibility, adaptability, and team spirit when collaborating with others on a project, then you’ll want to recognise that employee's efforts. By rewarding and recognising the employee for demonstrating the values, and explaining why they’re being rewarded, you reinforce your core values to the whole team.
Actually, it's important that you regularly remind your employees of your company's core values — and again, rewarding people for their behaviour linked to the values is an excellent way to accomplish this.
Really, at the most basic level an employee reward and recognition programme should be about saying "thank you." Whether it’s just a manager demonstrating praise, or it is combined with a reward, the point is that you want to encourage values-driven behaviours through praise, commendation, and incentive.
The benefits of a good company culture
There are a few unmissable advantages to having a happy and consistent workplace culture. For starters, good company culture will directly affect your people's job satisfaction. When employees feel valued and fulfilled in their roles, they are less likely to be lured away by competitors and remain loyal.
Your company culture will also set the tone for employee engagement. It's no surprise that organisations which invest heavily in acknowledging exceptional performance based on specific values or behaviours are often those that have the most effective culture. In turn, a strong company culture leads to increased employee engagement, which typically translates into increased revenues. For instance, a Gallup poll found that organisations with highly engaged teams show 21% greater profitability compared to their industry peers.
By rewarding and recognising your top value-aligned staff, you are encouraging a high level of performance amongst employees which then reflects on the customer experience they provide. After all, if you were given the choice to deal with a happy and attentive customer service advisor, or someone with an attitude that demonstrates they hate their job, which one would you pick?
Ultimately, when your employees are emotionally attached to your company's vision and believe in what they do, they'll contribute to the service-profit chain, a key concept for any business looking to improve employee engagement that helps the bottom line!
If you have any questions about how to develop and implement a strategic reward and recognition programme, reach out to our experts at Incentivesmart today. Also, be sure to check out our guide to encouraging positive behaviour in the workplace with reward and recognition + cheatsheet. This guide can help you examine how to effectively reward and recognise your employees, and reinforce your company's core values at the same time.