Rewarding Employees with Impact: Beyond the Gift Card

Recognising and rewarding employees for their hard work is an integral part of cultivating a positive workplace culture and retaining quality talent. Typically, employee rewards systems have been largely based around traditional rewards like gift cards. However, while gift cards have practical benefits, they may not be the most meaningful or personal way to acknowledge employees’ efforts. 

Increasingly, HR professionals and business leaders are striving to provide more impactful and diverse rewards for their people. Approaching employee rewards more intentionally can support enhanced productivity and happier employees, but how can employers and HR managers build an effective rewards system?

Discover how rewarding employees more intentionally can enable efficiency, productivity and morale, and explore a variety of effective rewards options.

Different Types of Rewards for Employees

There is a wide variety of rewards that HR and business managers can use to motivate and recognise their staff. Different types of rewards can be used in various ways to support each employee’s goals and performance.

Monetary Rewards vs. Non-monetary Rewards

Employee rewards typically fall into one of two categories, monetary and non-monetary, each with their own advantages and drawbacks.

Monetary Rewards

Monetary rewards include gifts such as vouchers, cash, and company shares. These incentives can ensure that rewards are distributed fairly and equitably across team members—they’re also typically a major motivator for employees. However, although monetary rewards have practical value, they can’t always improve office culture and can be tough on budgets. They can also feel impersonal to employees, which might actually have less impact than non-monetary rewards. It simply depends on employees’ priorities and motivators.

Non-monetary Rewards

On the other hand, non-monetary rewards are typically more thoughtful,  personal,  and more easily customised to specific employee needs and goals. They can come in the form of physical rewards—like gift hampers, for example—or less tangible things such as shoutouts, an extra day off, or flexible working arrangements. 

Non-monetary rewards are usually more meaningful and can foster a great company culture. However, employers must put significant thought into these rewards to ensure they’re actually motivating for employees.

Innovative Employee Rewards Examples Beyond Gift Cards

When it comes to rewarding employees, the options are almost limitless. Here are some creative employee rewards ideas that we love:

• Written or public praise
• Monthly subscription services
• Plants or art for employees’ home offices
• Upskilling courses
• Memberships to professional organisations or members clubs
• Flexible working options
• Volunteer days
• Gym memberships or exercise classes
• Wellness initiatives
• Subsidised commutes
  
  

Understanding the Impact of a Reward System on Employee Motivation

Receiving meaningful rewards in exchange for hard work or high performance can significantly enhance employee motivation levels. Employer recognition of their teams’ achievements often inspires team members to work harder and continue to produce good results. Recognising people for displaying company values can also be a significant contributor towards the desired workplace culture.

Advantages of Rewarding Employees

A study on employee engagement conducted by Bi Worldwide revealed that workplaces with the fewest instances of ‘recognitions with awards’ experience an employee turnover rate that’s four times higher than workplaces rewarding employees.

Staff retention is only the beginning. When employees are assured that rewards are directly correlated with their performance and behaviour, engagement and motivation levels can soar. In fact, a study from Deloitte reports that productivity is an impressive 14% higher when employees are recognised in the workplace.

Building an Effective Reward Scheme For Employees

There’s no such thing as one-size-fits-all when it comes to building an employee rewards program. A reward system should be customised to suit different organisations’ needs, structures, and budgets. Employers and HR professionals should consider employees’ priorities and motivational factors when designing their rewards. 

Common Pitfalls in Employee Reward Structures

Rewards systems aren’t a set-and-forget solution. A Gallup study found that only a little over a quarter of employees feel strongly that the recognition they receive at work is meaningful to them. 

When employee rewards have minimal thought behind them, they may actually make employees feel more undervalued. Rewards should be authentic and personalised; they should also be given regularly and to all employees. Rewarding employees sporadically or neglecting certain employees can lead to people feeling overlooked, unappreciated, and even alienated. But how can managers and HR leaders avoid falling into these traps?

Key Factors to Consider When Designing a Reward System

Building an effective, impactful rewards system doesn’t have to be tedious. It simply requires thought and intention.

Consider Your Objectives

The primary consideration when creating a rewards system is what you want it to achieve. Handing out rewards on a whim and without any structure often sees employers falling into the common pitfalls outlined above. Align the objectives of your rewards system with your business’s values and build a rewards criteria from there.

Reward More Than Just Performance

Good managers know that their employees are more than just their performance. Each employee is different and brings a suite of unique traits to the team. Acknowledging qualities beyond performance—like teamwork, creativity, adaptability, or friendliness—will help employees feel seen and appreciated.

Customise Your Rewards

Help your employees to feel special and recognised. Get to know what motivates each team member individually, and tailor rewards to those factors. Some people respond well to written praise, while others may need something more tangible, like a book you know they’ll enjoy or their morning coffee on the house. In large organisations, where HR leaders may not know each individual within the workplace personally, empower team leads to choose the right rewards for their people.

The Future of Employee Rewards: Trends and Insights

We live in a rapidly changing world. Working structures have shifted massively over the last few years and technology is advancing at unprecedented rates. Workplaces need to be willing to evolve and update their rewards systems to keep pace with their environment.

Technology in Employee Reward Systems

Almost all workplaces now exist within a digital context, and rewards systems are no exception. To make it easier to reward employees meaningfully, HR leaders and business owners can invest in a digital rewards platform. This provides one single source of information about employees and their performance and impact. As AI matures, HR professionals may even consider integrating the technology into their rewards processes.

Rewarding Employees in a Remote or Hybrid Work Environment

With the introduction of hybrid and remote working, many of the traditional methods of rewarding employees are now obsolete. Subsidised commutes, pizza on a Friday afternoon, or work-from-home days may not resonate with people the way they used to. Managers and HR leaders need to factor in their teams’ working environments when deciding how to reward employees. Can tangible rewards reach remote employees where they’re located? Do hybrid employees have enough opportunities to connect with their colleagues or communities? These are all important considerations for new ways of working.

Building a Better Culture by Rewarding Employees

Employees want to be seen and appreciated for their contributions, hard work, and diverse skillsets. Rewarding staff thoughtfully and intentionally can enhance overall company culture and boost employee satisfaction—but only if business owners and HR leaders are willing to put time and resources into building a meaningful rewards system.

Vivup can help businesses of all sizes create impactful rewards and recognition systems. Learn more about what our market-leading benefits platform can do for your organisation today.