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\nSummary:<\/b> An employee reward program is a way to acknowledge and reward hard work on the part of employees. If it\u2019s a program, it will likely have rules and goals to hit to get a reward and will give an idea of what the rewards will be.<\/p>\n<\/blockquote>\n<\/div>\n
Employee reward programs are an excellent way to help employee motivation and retention. So long as the reward programs are fair, achievable, and desirable, of course. Monetary rewards are the easiest because everyone appreciates them, and they don\u2019t require much creativity on the employer\u2019s part.<\/p>\n
Key Takeaways:<\/b><\/p>\n
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Employee reward programs are a good way to help motivate employees to up their achievements.<\/p>\n<\/li>\n
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There are both monetary rewards and non-monetary rewards. Both can be very successful, but in the case of the latter, it\u2019s important to make sure that the rewards are something that your employees value.<\/p>\n<\/li>\n
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Reward programs can also have a positive effect on talent acquisition and retention. Not only are the rewards themselves valuable, but it makes it clear to the employees that they’re valued by their bosses.<\/p>\n<\/li>\n<\/ul>\n
What Is an Employee Reward Program?<\/h2>\n
An employee rewards program is an organization-wide program that focuses on recognizing and rewarding employees\u2019<\/a> achievements. While the majority of workplaces do reward employees with raises or bonuses, a rewards program will be a defined collection of rewards and perks that employees can access as long as they reach certain milestones.<\/p>\n
A well-defined and accessible program can lead to higher employee engagement<\/a>, motivation, and satisfaction. It shows that you acknowledge their contributions and appreciate the extra effort they put in.<\/p>\n
How to Design an Employee Reward Program<\/h2>\n
How effective an employee reward program is will depend on the nature of the rewards and how much employees actually want them. That means it\u2019s important to consider what you\u2019re implementing and even poll your employees before settling on anything. Here are some suggestions to get your employee rewards program off the ground.<\/p>\n
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What are the goals of the program?<\/b> Depending on the purpose of your rewards program, you will offer different incentives for different achievements. So consider if you want to increase engagement, up productivity, acknowledge employees\u2019 hard work, emphasize deadlines, or encourage employee retention<\/a>.<\/p>\n<\/li>\n
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Determine what you want to reward.<\/b> If you\u2019re looking to emphasize getting things done on schedule, then rewards for employees who meet or beat deadlines would be a good idea. You should also consider how easy it is to gain a reward. Do you want to hand out small rewards to almost everyone? Or just highlight your best achievers?<\/p>\n<\/li>\n
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Decide what is eligible for rewards.<\/b> Once you\u2019ve decided what behavior you want to reward, you have to choose what\u2019s eligible for a reward. It should be something that is consistent and measurable so that it\u2019s clear what employees need to do to receive them.<\/p>\n<\/li>\n
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Survey your employees.<\/b> Once you have the basics down, you should turn to your employees. Different people value different things, so it\u2019s a good idea to get a survey of what the people in your workplace want. While monetary rewards are always popular, there may be other types of recognition that employees would like.<\/p>\n<\/li>\n
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Select the rewards.<\/b> The next step is to decide what your rewards are going to be. If it\u2019s a program, then it should be made clear. Employees should be able to see what they can get for their achievements. You don\u2019t need to be too detailed \u2013 it can be just \u201ca gift card,\u201d but the idea is employees know what they\u2019re working towards.<\/p>\n<\/li>\n
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Implement the system.<\/b> After the planning stage is over, you need to put the system into action. When it\u2019s in its trial phase, you should see how employees react to it and check to see if it ups performance. If it doesn’t seem too popular, it may be time to consider altering it. After all, you want it to be something that employees are excited about.<\/p>\n<\/li>\n
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Ask for feedback.<\/b> It\u2019s very important to ask your employees what they think of the program. If they aren\u2019t prizes that people are interested in, then you\u2019re unlikely to get much engagement. And if the requirements are vague or too difficult to achieve, you may have the opposite effect you\u2019re looking for and instead discourage people.<\/p>\n<\/li>\n<\/ul>\n
Types of Rewards<\/h2>\n
There are many different types of rewards that you can offer your employees. This will depend on the purpose of your rewards program and how much you\u2019re able to afford. However, rewards are broken down into two primary categories:<\/p>\n
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Monetary.<\/b> If you can afford it, this is going to be the most universally popular of your rewards. While people take pride in their jobs, they\u2019re there to make money. And there isn\u2019t much that\u2019s a clearer show of appreciation than a raise or a bonus<\/a>.<\/p>\n
Monetary rewards include:<\/p>\n
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Raises.<\/b> This is the type of reward that almost every organization has. Upping your employee\u2019s pay is a clear way of showing that you value them and their work. Generally, it\u2019s only considered a reward if it\u2019s more than the cost of living.<\/p>\n<\/li>\n
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Bonuses.<\/b> A bonus is an excellent way to show appreciation<\/a>. It doesn’t need to be a large one \u2013 though the larger it is, the more appreciated it\u2019ll be \u2013 but just the act of offering them a cash reward will show your appreciation.<\/p>\n<\/li>\n
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Gift cards.<\/b> While not as open as cash, gift cards are another way to reward employees. It\u2019ll cover part of their expenses, or they can use it to buy something they like.<\/p>\n<\/li>\n
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Paid vacations.<\/b> This can overlap with non-monetary if you just pay for a vacation<\/a> for them, but they don\u2019t get any disposable income out of it. However, if you give them time off to take their vacation, then it\u2019s a type of pay.<\/p>\n<\/li>\n
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PTO.<\/b> Additional paid time off is another way to pay your employees. After all, you\u2019re paying them the same amount even though they spend less time working.<\/p>\n<\/li>\n
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Stock options.<\/b> Offering employees stock options in the company is another way of giving them something valuable. While it\u2019s not as direct as a paycheck, it\u2019s a way to increase their wealth. It also invests them in the company \u2013 literally.<\/p>\n<\/li>\n
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Payment for a large purchase.<\/b> Covering the cost of a large purchase they\u2019re making \u2013 like a new TV or a downpayment for a car, is another way to give them a financial boost that isn’t just writing them a check.<\/p>\n<\/li>\n
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Paid professional development.<\/b> While less direct than many other rewards, offering to boost their professional development is something that will pay off for them in the long run. Additionally, it\u2019ll help your organization, as it\u2019ll also reap the rewards of increasing their expertise.<\/p>\n<\/li>\n
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Profit sharing.<\/b> Not all businesses have profit-sharing programs. But if yours does, then offering them the ability to be part of it is another way to show appreciation and up their wealth. Additionally, it helps invests them in the company.<\/p>\n<\/li>\n
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Upgraded pay packages.<\/b> Some reward programs will only offer certain pay packages to employees that hit certain goals. That\u2019s a way to increase employee pay based on achievements and merit. It\u2019s arguably fairer as well, so long as the package is the same for everyone who hits those goals.<\/p>\n<\/li>\n
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Tuition assistance.<\/b> Paying for classes or paying off student loans<\/a> is another monetary benefit. Many young people have student debt, and getting help paying that off is a way to lift a burden off them, as well as give them more disposable income.<\/p>\n<\/li>\n<\/ul>\n<\/li>\n
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Non-Monetary.<\/b> In addition to monetary rewards, there are also ones that don\u2019t directly contribute to the employee\u2019s wealth. That doesn’t mean that they won\u2019t be well received or highly motivating, but they often need to be more tailored to the individual than just cash.<\/p>\n
Non-monetary rewards include:<\/p>\n
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A charitable donation in the employee\u2019s name.<\/b> In this case, the employee should be able to select the charity that receives the donation. It\u2019s also acceptable to give a list of charities and let them pick the one they prefer. After all, it isn\u2019t much of a reward to donate to a charity they don\u2019t like or support.<\/p>\n<\/li>\n
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Allowing them to take a morning or afternoon off.<\/b> Extra time off is always appreciated. Letting them leave early or come in late can be an excellent incentive<\/a>.<\/p>\n<\/li>\n
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Work from home privileges.<\/b> Working from home is becoming more popular \u2013 particularly with younger workers. Offering them the ability to work from home or additional work-from-home days is another way to show appreciation.<\/p>\n<\/li>\n
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A party.<\/b> Throwing a party in their honor is another way to highlight employee achievements. It doesn’t need to be anything fancy, but it\u2019s important to give recognition when it\u2019s due.<\/p>\n<\/li>\n
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Additional casual dress days.<\/b> Being able to be comfortable at work is a major plus. Allowing additional casual days or causal vouchers can be an easy bonus to give them. Just make sure that they\u2019re the kind of person who\u2019d enjoy taking advantage of them. Not everyone wants to be the only one dressed down.<\/p>\n<\/li>\n
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A team trip.<\/b> Offering a trip to a ski resort or beach can be a great way both to reward the team and encourage them to build bonds outside of the office. However, this type of reward is more suited as a reward to the whole team than an individual.<\/p>\n<\/li>\n
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Allowing them to bring their dog to the office.<\/b> If the employee in question is a dog owner, giving them a few days to bring their dog into the office could be greatly appreciated. Of course, how well it\u2019ll work will depend on their dog, so it might be worthwhile to do a trial run.<\/p>\n<\/li>\n
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