Rewards and recognition are key to motivation and satisfaction in the workplace
Global dining firm Paradise Group, headed by CEO and Asia’s Most Influential honouree Eldwin Chua, made waves on social media after the Singapore-based company gifted Rolex watches and Suisse gold bars to its employees as tokens of appreciation. During Paradise Group’s 14th anniversary celebration at the Marina Bay Sands Grand Ballroom, 98 employees who had served more than 10 years in the restaurant group were given Rolex watches in a variety of models, while employees who had served five to nine years were gifted 2.5g or 5g bullion bars.
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So when a post showing Paradise employees picking up their watches in Rolex’s signature green presentation box popped up on social media, a conversation about recognition in the workplace began. How should companies reward service? Is Paradise Group’s big-hearted gesture an exception rather than the rule? And should employees be motivated by gifts for doing what is expected of them?
The reward of giving rewards
Studies have shown that granting rewards is, indeed, rewarding not just for employees but also for employers as they have been positively linked to better employee performance, engagement and retention. It doesn’t even have to be an exceptionally expensive gift such as a luxury watch. Rewards like additional vacation days, flexible work arrangements, training sessions or even simple acts of recognition are effective ways of motivating employees to perform at their best—and, in some cases, stay put in an uncertain global work environment that has seen millions of people leave their jobs in the past few years.
Intrinsic Rewards and Employee’s Performance With the Mediating Mechanism of Employee’s Motivation, a 2021 study published in the open science platform Frontiers, found data to support the long-held wisdom that employee motivation leads to dedication in work and satisfaction in jobs. The report further emphasised the value of managing not just extrinsic rewards such as pay bumps, bonuses—and, yes, the occasional Rolex—but also intrinsic rewards like praise, feedback and employee development. The two kinds of rewards work together: extrinsic rewards enhance the motivation boost of intrinsic rewards, the study found.
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