30 Types of Employee Rewarding Programs and How To Design Them

It wont be wrong to say that we are currently living in one of the progressive eras of human history. The massive adoption of technology has now molded our socio-economic system and made it more competitive. And to keep up in this competitive environment, organizations are leaving no stones unturned for enhancing their employees performance. This is where an employee reward system becomes very useful and gives the organizations a competitive advantage.

Employee Rewards and Recognition Program – Vantage Circle

30 ways to reward employees

Employee rewarding programs can be as simple as verbally recognizing an individual for their work or as elaborate as paid weekend retreats. Here are 30 ways to reward your employees:

Why employee rewarding programs are important

Employee rewarding programs are important for motivating workers and attracting and keeping top talent. Both small and large organizations set up reward programs as part of the company culture to recognize individuals or groups of employees for their personal or team achievements. These rewards can be monetary or non-monetary. They benefit employees by making them feel appreciated. They benefit the company by encouraging employees to perform at their best.

How to design an employee rewarding program

For an employee rewarding program to be effective, it should be well-organized and within the companys budget. Employees should clearly understand how it works and the metrics the company uses to assess performance and give rewards. Follow these steps when designing your employee rewarding program:

1. Identify the reward programs goals

2. Determine which employee actions support your goals and how to measure them

Determine the minimum sales revenues or amount of positive customer feedback an employee must earn to get a reward.

3. Establish a process for choosing reward recipients

Decide whether any employee who reaches a target performance metric—for example, a 5% increase in month-over-month sales—receives a reward or if employees earn recognition through a nomination or approval process.

The first option is easy to measure and reward but can be unpredictable from a budgeting or planning perspective. The second option involves regularly nominating employees (monthly, for instance) for their performance, discussing their contributions with a committee of managers and agreeing on one employee to reward. This method is predictable and organized but can be time-consuming.

4. Decide on rewards

Decide what type of employee rewarding system your company wants to use and whether you reward individual performance, group accomplishments or both. The type of program you choose depends on your companys size, budget and goals and might include:

Employees earn points over time for meeting performance goals. They can redeem those points for gifts, vouchers and merchandise, which companies often list in a reward catalog. The more valuable the gift, the more points they must accumulate to get it. This system is beneficial because it gives employees the satisfaction of selecting their own rewards and makes managers task of giving out points easy.

Financial rewards are typically more useful for large companies and include profit-sharing, stock options and bonuses. These types are rewards are highly motivating and can result in significant performance improvements.

Suitable for small or medium-sized businesses with smaller reward budgets, non-monetary rewards include items such as time-off vouchers, VIP parking spaces and visual or verbal recognition. They require little financial investment from the company but can still motivate employees and give them pride in their work.

5. Communicate the reward program to your employees

For rewarding to be successful and motivate your employees, the team needs to understand what they must do to receive those rewards. Dedicate a section of the companys employee handbook to the program and its details. Send a company-wide email announcing a new reward program and explaining how it works. If you update the system or its requirements, send a communication describing these changes.

FAQ

What is employee reward?

Employee reward systems refer to programs set up by a company to reward performance and motivate employees on individual and/or group levels. They are normally considered separate from salary but may be monetary in nature or otherwise have a cost to the company.

What are the three main ways of rewarding employees?

Here are 9 low-cost ways to reward employees:
  • Express thanks with a public thank you. …
  • Give a hand-written note. …
  • Offer time off. …
  • Give small gifts. …
  • Cover commuting costs. …
  • Offer chair massages. …
  • Feature top employees on your company blog or newsletter. …
  • Schedule an all-company activity.

What is the importance of rewarding employees?

Rewarding and recognizing employees leads to greater employee engagement, which increases retention and helps create a more positive overall workplace. Incorporating a rewards and recognition program helps increase employee engagement, leading to many benefits for the company, like increased productivity and retention.

What is a good reward system for employees?

Social recognition

Social recognition is a non-monetary employee recognition and reward system. From a simple “Thank you” to a shout-out during staff meetings, social recognition allows employees to feel valued for their work.

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