Using carrot rewards, which reward employees for desired behavior, have been proven effective in rewarding employees in a number of ways. Carrots can be used in health and wellness programs to reward employees for reaching goals, they can be used as spot rewards, to reward employees on the spot for desired behavior, but carrots are most traditionally used as milestone rewards. Rewarding employees for long-term commitment to their organization goes a long way. Whether it is a gift card on their one year anniversary, extra vacation time after 5 years, or a watch after 10 years, recognizing employees efforts, commitment and sacrifice over time is crucial. It both recognizes the employee's contribution, and shows the employee that their organization will continue to support and recognize them. When employees feel noticed and supported their productivity goes up, their commitment extends, and they become more content in their jobs and their workplace. Dangling carrots may help boost retention rates and keep employees content for longer.
For more information on using carrot rewards to improve employee retention check out this article from Daily News and Analysis.