What Are the Consequences of Insufficient Rewards?
The impact of insufficient rewards can be profound and far-reaching. Below are some of the key consequences:
1. Decreased Employee Engagement: Employees who feel undervalued are less likely to be engaged in their work. This can lead to lower productivity and a higher likelihood of errors. 2. Increased Employee Turnover: Talented employees are more likely to leave an organization if they do not feel adequately rewarded. This can lead to higher recruitment and training costs. 3. Lower Workplace Morale: When employees see their colleagues leaving or feel they are not being fairly compensated, overall workplace morale can suffer. 4. Reduced Innovation: Employees who do not feel rewarded are less likely to go above and beyond their basic job requirements, stifling creativity and innovation.