Corporate Rewards Strategy for Enhanced Employee Performance

Motivating and rewarding employees for their hard work and achievements is the key to creating a thriving, successful, happy workplace, particularly in today’s increasingly competitive business environment.  One of the most impactful ways to boost employee confidence and amplify productivity is through a well-structured corporate rewards strategy. A thoughtfully designed rewards programme that celebrates an organisation’s people and reinforces the behaviours and values the business promotes can inspire employees to continue performing at their best.

Understanding Corporate Reward Schemes

Corporate reward schemes for employees are an effective way to show your people that you value the hard work and unique skills they bring to the workplace.

Types of Reward Strategies for Employees

There are many different types of rewards that employers can offer to their people, each of which serves a distinct purpose and can resonate differently between employees. It’s worth noting that some reward types may work better for certain organisations than others. 

Monetary

Monetary rewards are among the most common types of corporate rewards. They often come in the form of bonuses, commission structures, stock options, profit sharing, or pay rises. The immediate benefit and universal value they provide to the employee can be extremely effective as a motivator. However, they are not personal to the individual, and may overshadow other things that really drive that person. Additionally, companies operating on tighter margins may not have the means to reward their employees monetarily.

Non-monetary

On the other hand, non-monetary rewards for employees include non-financial rewards, such as flexible work arrangements, extra days off, gifts the individual will enjoy, and even positive feedback. These rewards can be tailored more closely to individual employee preferences, and let employers show their teams that they value them for more than just their output. However, employers and HR managers must be careful to choose rewards that will resonate with the employee in question to ensure they feel genuinely appreciated. 

Social Rewards

Social rewards are an effective way to reward whole groups of employees and build community within the workplace. Treating employees to dinner or other group activities—or even just encouraging positive peer-to-peer feedback—can create a feeling of connection and belonging at work. However, employers must be careful to include all employees to ensure none feel alienated or overlooked.

Experiential Rewards

Experiential rewards are about giving employees and teams memorable experiences, as opposed to physical gifts. They include rewards such as travel opportunities, retreats, industry conferences, or event tickets. They can be personalised to employees’ interests and personalities and give them an opportunity to break routine and do something they love—just make sure to consider their responsibilities and personal preferences outside of the workplace.

Components of Reward Strategies

Developing a rewards strategy doesn’t need to be complicated; it should consider the following components:

Organisational Objectives

What are the organisation’s goals? What does it hope to achieve from a rewards strategy? A reward scheme for employees should reflect and align with the company’s mission and values and help the organisation reach its goals while making its people feel appreciated.

Fairness and Transparency

Reward strategies must be just. There must be clear criteria for receiving a reward, and rewards for employees should be given out fairly to avoid favouring any one person.

Personalisation

The best rewards are tailored to an individual’s personal preferences, interests, and motivators. Where one person might love a bonus, others may prefer an extra day off or a gift that matches their hobbies. HR professionals and employers should take time to understand what makes their people tick.

Diverse Rewards Options

Offering a wide variety of rewards is an effective way to accommodate a range of different employees’ rewards strategy preferences. 

Corporate Sustainability

A good employee reward strategy sets up an organisation for future success. The strategy must be able to grow and change alongside the company without compromising on budget or other resources.

Developing a Tailored Reward Strategy

Aligning Employee Rewards with Organisational Goals

What do you want from your rewards strategy, and how can it help your business achieve its goals? Defining clear objectives allows HR professionals and business leaders to develop a great rewards strategy. Rewarding employees for making progress towards goals helps the business to continue to grow and succeed. When employees feel recognised for their hard work and progress, it motivates them to keep doing a great job.

Considering Employee Needs and Preferences

The best, most effective rewards schemes for employees are thoughtful ones, and there’s simply no way to give thoughtful rewards without knowing employees. Employers should make an effort to get to know their staff members’ interests, hobbies, and passions. For bigger organisations where this might be more difficult to do, consider training and empowering managers to reward within their own teams. HR teams can also conduct employee feedback sessions or surveys, or use workplace demographic data to tailor rewards to employees. Alternatively, allowing employees to choose their rewards themselves can ensure everybody is satisfied and feels valued.

Implementing and Managing Reward Schemes

Best Practices for Launching New Reward Programmes

Everyone should be clear on how the rewards programme works. Not only does this ensure fairness, but it can also motivate employees to work harder towards a reward. 

Monitoring and Evaluating Reward Effectiveness

Workplaces and HR teams must make sure their employees are always informed about any changes to the rewards strategy.

Training sessions, feedback, and FAQs can help employees understand how their rewards programme works and how they can utilise it to their advantage. Digital tools can help employees monitor their own progress and can support HR teams and employers in keeping track of the reward offerings.

Leveraging Technology in Reward Management

The right employee benefits platform, such as Vivup, can help enhance rewards programmes, making them more effective for both employees and employers. Vivup can help business and HR managers design a rewards and recognition programme that supports their organisation and drives employee engagement and performance. The easy-to-use platform helps teams access all their benefits in a single digital place, and is fully customisable to include the rewards and benefits that suit an organisation. Employers can choose from our selection of benefits and add their own existing ones.

Building an Effective Reward Programme with Vivup

An effective rewards system is crucial to building a motivated, engaged organisation. The right platform can help employers build the right rewards scheme for employees that will suit their business’s objectives. 

To learn more about how Vivup can help your organisation fine tune its corporate rewards programme, request a demo today.