According to the principles, why is it important to reward employees?

Rewarding employees on the basis of their merits is fundamental because it fosters a culture of recognition and appreciation within the workplace. This approach encourages employees to strive for excellence and enhances motivation, as individuals see that their hard work and contributions are acknowledged and valued. Merit-based rewards can lead to increased job satisfaction and morale, as employees feel more engaged and committed when they see a direct correlation between their efforts and the rewards they receive.

This principle is aligned with effective performance management practices, which emphasize the importance of setting clear expectations and outcomes. When rewards are tied to performance, it helps to establish a fair and transparent system that can contribute to overall organizational success. Furthermore, recognizing merit often leads to a healthier competitive environment among employees, which can drive innovation and productivity.

While loyalty, maintaining company image, and conflict avoidance are important aspects of a workplace environment, they may not directly address the need for establishing a performance-driven culture that rewards excellence. Relying solely on loyalty or image can create an atmosphere where employees do not feel genuinely valued based on their contributions, potentially leading to disengagement over time.