Looking at Sodexo’s example, it is observable that widespread incentives enhance the organizational efforts to improve both the culture and retaining employees. Sodexo has incentives for rewarding its employees especially when they achieve exceptional outcomes. For instance, when a group of dieticians develop a new order for ordering and delivering medication, they receive recognition and rewards. Therefore, this is to say that rewards come in handy in motivating employees to work hard and produce desirable outcomes (Özutku, 2012). In addition to that, this insinuates that rewards influence employees to have pride in their work because they feel their efforts are appreciated. Further, rewards can either be intrinsic or extrinsic and they motivate employees to embrace their jobs even in challenging environments. They also encourage them to exercise greater commitment to organizational goals and boost their morale and this is necessary to reduce the rates of staff turnovers (Özutku, 2012). This implies that the rewards system helps to improve organizational culture as well as retaining employees.
On a further note, most of the reward systems are built on the achievements of the employees. However, this can be problematic especially when co-workers feel that the reward system in place is not fair (Ahlgren, Andersson, & Sköld, 2007). These employees may feel that their efforts are not recognized as expected and this can hinder their performance and productivity. That is, it can influence some employees to feel left out and can even cause conflicts among co-workers. Teamwork will also be affected especially if the team members are competing against each other instead of cooperating. When there is a lack of cooperation, then motivation levels will also be affected and productivity will reduce (Ahlgren, Andersson & Sköld, 2007). Therefore, although the recognition and rewarding employees are important, the impact on colleagues and co-workers should be considered.
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References
Ahlgren, A., Andersson, I., & Sköld, H. (2007). Individual versus Team Based Reward Systems.
rapport nr.: Ekonomistyrning 06-07-135 .
Özutku, H. (2012). The influence of intrinsic and extrinsic rewards on employee results: An
empirical analysis in Turkish manufacturing industry. Business and Economics Research Journal , 3 (3), 29-48.
