Rewarding employees - when, why and how

• 29.05.2023.
• News, Management

Do you realize that your charter company's employees are directly responsible for its success and growth? Show them your gratitude and let them know how valuable and appreciated they are, especially in this day and age when it is difficult to find employees throughout the tourism sector, not just yacht charters.

You should think about when and how to reward your employees even before the season starts. Always keep this in mind and try to take every opportunity to do so. 
 
Rewarding employees has a direct impact on building a successful and loyal team, especially nowadays when it is difficult to find good employees. 
 
But how do you actually reward employees who have contributed greatly to the full booking of the fleet, to a successful season, but also to the growth and development of your charter company? How do you reward the entire team? How do you reward individual employees when they meet or exceed your expectations? 

Why should you reward your employees? 

Whenever we do something, whether in life or in business, it is important to know why we are doing it. 
 
Before we outline specific steps on how to show your charter employees that you are aware of their value, let us first look at why this would be good for your charter company in the first place. 
 
Research shows that rewards, even tokens of appreciation, can significantly increase employee efficiency, motivation and loyalty. This is extremely important in these difficult times when it is hard to find suitable employees, regardless of their industry. 

5 reasons to implement a reward system in charter companies 

Reward systems have a positive impact on employees because you, as an employer, make it clear to them that their work is recognized and appreciated. Various other gestures of recognition of your employees' performance work just as well. 
 
We'll share a few more reasons why a reward system is necessary for everyone, including charter companies that want to run successfully: 
1. It increases employee motivation 
2. It shows your appreciation 
3. Encourages friendly competition 
4. Retains good employees 
5. Creates a positive work atmosphere 
 
1. Rewards increase employee motivation 
The principle of reward as an indicator of desired behaviour has undoubtedly been familiar to many of us since childhood. In adulthood, we still function similarly, though perhaps not always consciously. When a person receives a positive response to a particular behaviour or work, they repeat it and unconsciously hope for the same positive outcome. 
Therefore, rewarding employees gives them specific goals for their work and increases their motivation to achieve them. 
 
2. Rewarding employees shows your appreciation 
By thanking your team members for their work, you show them that they are valuable and seen, and that their contributions matter to the functioning of the entire organization. Research shows that gratitude to others affects our brains, including the hypothalamus, which is responsible for appetite, sleep and dopamine. Showing gratitude to workers through various tangible and symbolic rewards can reduce stress, improve sleep, and even boost metabolism! 

3. Rewards promote friendly competition 
Just as the award motivates the employee who received it to continue his productive work, it also motivates his colleagues. They will try to do even better next time so that they, too, can win the award. A certain amount of rivalry can be healthy among employees, as they will spur each other on to better results. The employee with the best results will have an added sense of accomplishment when they are actually rewarded. 
 
4. Rewards maintain employee quality 
Reward systems increase employee satisfaction, and happy and engaged employees stay loyal to their company. Even if they can get paid more elsewhere. People want to work for companies that recognize their value and show it through concrete examples and rewards. Investing in the right reward system can significantly increase your chances for growth and long-term success. 
 
5. Rewarding employees creates a positive work atmosphere 
Teams made up of motivated, satisfied and valued employees are more productive, positive and creative. A positive attitude and productive work atmosphere are undoubtedly contagious. It can lead to overall satisfaction in a company full of enthusiastic and fulfilled employees. Company culture is one of the most important components of a successful business. 
A reward system that promotes motivation, productivity, satisfaction and collaboration makes this culture extremely attractive to current and potential future employees. 

How to reward employees 

There are many more reasons why rewarding employees can create a loyal team, and such a team can accelerate the growth and success of your charter company. 
Implementing a certain portion of specific ideas does not require an excessive financial investment. The key to successful rewards is knowing your team members. If you know them well, you will know what will suit them. 
 
Some creativity is essential here, and if you haven't already, try one of the following ideas: 

1. Offer your employees a unique experience 
Humans inherently strive for connection, and the need for authentic relationships has become stronger than ever in recent years following the global pandemic. If you want to reward multiple employees at once or entire teams, offer them a unique experience, such as a team building or social gathering. This way, they can connect, relax and get even closer. 
 
2. Allow your employees extra time off 
Allow your employees to leave work an hour early or get a full day off that they were not expecting. This can bring huge benefits to the company without any significant losses. Such a gesture is especially appreciated by employees who are already working overtime, and it is obvious that they are doing their best. 
 
3. Give your employees thoughtful tokens of appreciation 
You don't have to spend large sums of money from your budget to pay your employees big bonuses and show them that you appreciate their efforts. The same can be achieved with small tokens of appreciation. Especially if they are well thought out, unusual or completely unexpected. 

4. Publicly thank your most valuable employees 
One reward that can have a significant impact on employee motivation is a public thank you for their work and dedication. Plus, it's completely free. Another excellent and effective option is a handwritten thank you note, which stands out in the age of emails and online messages. 
 
5. Promote the best employees on the website or social networks 
Posting "character and the work" of the best employee or employees on your website or social media is a form of public recognition that will further motivate other employees. It also shows your customers and followers that you value and respect your team. In addition, highlighting certain desirable qualities shows future potential employees the values your charter company represents. It also gives them an idea of what is expected of them if they start to work for you. 
 
6. Invest in your team's personal and professional development 
Dedicating a portion of your budget to investing in employee training or implementing new tools is a decision that will pay off many times over for everyone involved. Your team members will be excited when they get the chance to learn something new that interests them. They'll also break their daily routine, and everything you have invested will pay off for you when they apply what they have learned to their work performance. Showing an employee, especially an ambitious one, that he is worth the investment is a reward in itself. And it's certainly something he will not forget! 
 

At the end of each season, management and employees are responsible for a successful outcome, each for their unique contribution. So don't ask yourself at the last minute "what you should do" to reward your employees. Prepare in advance, and you can reward them continuously throughout the season and at any time of the year. 
Celebrate together at the end of a successful season to lay the foundation for an even better next season. 
 
The employee rewards system can also be a financial challenge for some yacht charters. However, never eliminate rewards altogether. Rewards don't have to be physically tangible, financially demanding or extensive. Rewards in any form bring numerous long-term benefits by positively influencing employee behaviour and work. 
 
Finally, a public thank you can have much more impact than you might think. But only if it is sincere and comes from the heart. And rightly so, of course.

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