Reward schemes and regular feedback more effective motivation than financial incentives

This article is brought to you by Retail Technology Review: Reward schemes and regular feedback more effective motivation than financial incentives.

A new survey of retail sector customer support employees has found that reward schemes are more effective than financial incentives when it comes to boosting employee motivation.

According to the research, by customer support and quality assurance improvement platform, EvaluAgent, 61% of employees find that reward schemes have a positive impact on their motivation and satisfaction levels, while 54% said the same for pay incentives. 

Regular communication, feedback and appraisals are also more effective than financial incentives according to 57% of employees, while benefits such as flexitime and healthcare were deemed almost as important as money at 51%.   

The research revealed that a staggering 71% of retail customer support workers struggle to remain motivated at work, while 42% admitted that their productivity levels vary throughout the year.

When asked whether they thought their employer could do more to improve staff motivation and satisfaction levels, 87% of those surveyed agreed. This suggests that retailers need to ensure they are implementing a wide variety of employee engagement and motivation tools, not just financial incentives.  

Jaime Scott, CEO at EvaluAgent, commented: “There is a common misconception amongst employers in many industries that money is the greatest motivator. However, as this research shows, this simply isn’t the case.

“It’s clear that in order to stay consistently motivated and productive, it’s important for customer support employees to feel valued and appreciated within a supportive, open work environment.

“Employee reward schemes can be a brilliant way of recognising an employee’s commitment to their role and to the business. With rewards clearly linked to performance, they are typically really effective at driving engagement and motivation.

“Meanwhile, regular feedback gives employees a clear picture of their current progress, ensuring that they have the tools they need to earn rewards or receive a pay incentive, which is also crucial when it comes to maintaining motivation levels.”