What are employee rewards programs?

Employee rewards programs can take many forms, but they all serve to recognize staff members for their achievements. Successful employee reward programs are structured with specific criteria and implemented consistently. Rewards can have monetary value or offer recognition for what the employee did, such as receiving a public “thank you.” You can also use a combination of reward types.

Reasons to use reward programs for employees

Employee reward programs offer recognition, which is an important part of making workers feel valued. They can help create a more positive company culture and motivate employees. Here are some potential benefits of a well-executed recognition program:

• Improved morale: People feel happier when they’re recognized for their work. It feels good to know your boss notices a major accomplishment or consistent high-quality work.
• Increased productivity: When work goes unnoticed, employees aren’t motivated to go above and beyond. Reward programs can encourage employees to work harder and more efficiently in order to earn recognition, improving your workplace productivity.
• Sense of community: Rewarding employees can foster connections between coworkers. When done well, the rewards get employees excited for one another. A celebratory feeling can help unify your employees.
• Clearer expectations: When you reward the behaviors and accomplishments you like, you show your employees what you want and help them understand your expectations.
• Reinforced values: Aligning your rewards program with your company values helps to reinforce that message. For example, you might use the program to promote teamwork.
• Recruitment: Having a strong recognition program can help you recruit employees. Job seekers want to work for companies that appreciate their employees. Formal employee rewards programs can be considered another job perk that can make your company more attractive.
• Employee retention: People tend to stay where they’re appreciated. Little perks and rewards can encourage your employees to remain with the company, boosting your retention.

Creating employee reward programs

To help create a customized employee rewards program for your workplace, follow these steps:

1. Get leadership buy-in: You’ll need support from the top to make your program successful. Prepare to pitch the benefits of a rewards program to get company executives on board.
2. Identify your purpose: Decide what you want to get from the program, such as improved job satisfaction or increased productivity. Keep these goals in mind as you create the program.
3. Set your budget: Knowing how much you can spend on rewards helps you shape an affordable and meaningful program.
4. Decide who’s in charge: Appoint someone to run the program and serve as a resource if managers have questions about it. If you’re using a reward platform, you’ll still need someone to monitor the program and help others use it.
5. Set the criteria: Your program will be easier to implement consistently with clear criteria. Determine measurable achievements that you’ll recognize through the program.
6. Designate people who can give rewards: This might include HR, managers and supervisors. Some programs also allow peer recognition.
7. Choose the rewards: Offering various types of rewards and recognition can make the program more appealing to employees who may have different preferences. You can choose different levels of rewards to give all employees a chance at receiving recognition.
8. Launch the program: Wait to unveil the rewards program until you have all the pieces in place. Make an announcement or hold a kickoff meeting to ensure all employees know about the program.

Best practices for rewards programs

Creating a rewards program from scratch can seem overwhelming. These tips can make it easier to develop a successful program:

• Make it attainable: All employees should be eligible for the program and have a real shot at earning rewards. This helps build camaraderie and an inclusive environment instead of dividing employees.
• Be consistent: A recognition program won’t be motivating if it’s not used regularly. There’s no incentive to do things that might lead to a reward if they’re only awarded occasionally. Get managers on board and use the program consistently.
• Align the program with your values: Help build a stronger culture by incorporating company values into your program. If you value mental health and work-life balance , you might choose rewards that support that such as time off. If supporting other small businesses is important to you, reward your employees with products or gift cards from neighboring businesses.
• Build up excitement: Make sure all your employees know about the rewards program. Talk about it often and make a big deal when you give out awards to encourage others to work toward earning a reward.
• Get feedback: Don’t assume you know what your employees want. Ask for their imput on ideas for the program. After you start the program, ask employees how they like it and make changes as necessary.
• Make the rewards highly visible: A rewards program isn’t just about getting a physical item. It’s also about giving employees recognition for what they’ve done. Announcing the winners or presenting rewards in front of the team helps accomplish this.
• Measure the results: Gather data on productivity, turnover and performance at regular intervals to help you determine if the rewards program is achieving results.

Ideas for your rewards program

Reward programs for employees don’t have to be expensive or complicated. You can use one simple reward system or incorporate multiple reward methods. Consider your budget and what your employees want when creating your program. Here are some reward program ideas.

1. In-office privileges

Make the workplace special and more enjoyable for employees who earn rewards by giving them special perks or privileges. Examples include:

• Choosing the office playlist for the day
• Getting a special parking spot
• Getting out of a certain responsibility for the day
• Swapping jobs with someone else
• Working from home
• Casual clothing day

2. Public, online recognition

Create a feature section on your website where you can publicly recognize employees for accomplishments. You might acknowledge someone new at regular intervals, such as weekly, or only add someone when they have an outstanding accomplishment. You can also recognize employees for their accomplishments on social media channels.

3. Fun office awards

A traveling trophy or quirky award is a simple, fun idea for office recognition. You might have a sales trophy that goes on the desk of the person who breaks their personal sales record, or you might recognize the person who has done the most that week to help out their colleagues. The recipient gets to feel appreciated, and the trophy sitting on their desk lets other people know about their accomplishment. You can often find old trophies at thrift stores, or you can make your own. You might mount one of your products on a board and spray paint it to make a company-specific award, for example.

4. Special delivery

Surprise employees with a special delivery to brighten their day. Examples include flowers, lunch or baked goods. You can have it delivered by a professional service or have the person’s manager hand-deliver goodies to their desk to recognize their accomplishment.

5. Gift cards

It’s not always possible to know what types of rewards every employee will like. An easy solution is to provide gift cards, so employees can choose their own rewards. You can keep a selection of local gift cards on hand or go with prepaid Visa or Mastercard cards that can be used anywhere.

6. Health-related rewards

If you want to promote healthy lifestyles, consider wellness-related rewards. You might give the recipient a free membership to a local gym. Awarding Fitbits or similar devices is also a good way to encourage healthier behaviors.

7. Points-based systems

A different approach is a system where employees earn points for specific accomplishments. They can trade in those points for merchandise, gift cards, experiences, time off and other rewards. You can set up the points system internally or use a rewards platform for less work on your part.

8. Team rewards

A mix of individual and team rewards helps keep your employees motivated. It can also give employees who don’t normally earn individual rewards a taste of recognition. You might reward a team for finishing a project before the deadline, breaking a sales record or creating a solution to a problem. Rewards can be simple, such as a pizza party or a team outing to a baseball game.

9. Extra paid time off

Getting bonus paid time off can be a powerful motivator for some employees. It’s a relatively easy and low-cost option for your reward program. It can have an added perk — more PTO encourages work-life balance and may help your employees avoid burnout.

10. Peer-to-peer recognition

While recognition may often come from a manager or supervisor, you can also include a component that lets employees recognize or reward one another. This can encourage teamwork and strengthen relationships between colleagues. It’s also a good way to recognize more actions. Managers may not see everything employees do to help a team succeed, but the people who work closely with them on a daily basis do.