How to Measure the Impact of Employee Rewards on Performance

When implementing an employee rewards program it is imperative that managers measure its effectiveness. Below are 9 steps to help managers measure the impact their employee rewards program has on employee and company performance, workplace satisfaction and employee engagement with their work:

• Take a baseline assessment of performance, workplace satisfaction and work engagement before implementing the rewards program
• Train the employees to comprehensively understand and adequately implement the behavior that will lead them to their performance goals
• Reinforce desired behavior
• After implementation of the rewards program, measure employee’s satisfaction with the program and solicit any recommendations for improvement
• Use surveys, KPIs and other performance metrics to measure changes in knowledge, skills, attitudes and progress during the rewards program
• Use KPIs to measure the impact the rewards program has on the company as a whole
• Compare program monetary benefit to the cost to implement the rewards program using the following model:
• Continually adjust the program based on employee performance, employee satisfaction and ROI
• Measure any changes in program implementation by repeating this cycle

Following these nine steps will facilitate the rewards program evaluation process. It will also help managers identify any changes that should be made in order to enhance the program.