Whether you’re a company of 10 dedicated staff, or a team of 1000, offering your employees a great compensation package, including benefits, is a good way to ensure you’re not only recognizing some of the, but showing your employees that you care. But, you might be wondering, “can I offer more?”. While steady paychecks and additional health and dental benefits are generally considered to be adequate, you may want to reward stellar performances, teamwork, good behavior, excellent attendance, and even goals being met on either an individual basis, or company wide. No matter the case, there are plenty of interesting and useful reward systems you can employ at your company to reward your team accordingly!
If you’re looking to incorporate the best employee reward systems at your company—but aren’t sure where to start—read on! You may already be offering the best employee benefits at your company, but, offering rewards for exceptional performance beyond what is already included in your compensation package is a great way to show your team that you care!
- Attract and retain top talent
- Increase employee productivity and loyalty
- Create a positive workplace
Offering employee rewards, in addition to regular compensation and benefits, is a great way to attract and retain talent, boost productivity and build loyalty among your staff. Providing your employees with incentive to perform well, and rewarding their dedication accordingly, is a great way to foster a productive workplace community that gives back to its workers.
In terms of rewards impacting talent acquisition, think of it this way: offering and advertising your rewards program to potential candidates through employee retention strategies or is a great way to pique their interest and stand out above any other similar companies whom you consider to be your competition. You can share examples of employee rewards you’ve given at your company, and even give a timeline or scenario to your potential employee as to how they could earn such rewards in order to get them excited about their potential role, and start them off on a driven and motivated note!
And, when considering retention strategies, employee rewards are essential component, they also help with loyalty and employee satisfaction. Employees who stay in their roles for a number of years may do so for many reasons, but generally, they’re happy with the company culture and environment, they enjoy their duties, they feel there is room for growth, and they are pleased with their compensation and how they are treated. However, after many years in a position, employees may fall into a rut or feel ‘stale’ in their role, and offering rewards is a good way to add an element of excitement, and incentive, to change things up and get employees re-engaged with their roles! You may opt to give rewards as a surprise, for example, as a ‘top performer of the week’ or ‘employee of the month’, or, you may present the opportunity to earn a reward as a means to boost morale and increase productivity and performance. An appealing reward system that employees are encouraged to work toward can add an element of healthy competition to your workspace, amplify your company culture, and add ongoing incentive for good behavior and performance. Happy, engaged and productive employees will contribute to creating and maintaining a positive work environment, which is favorable to all employees, old and new!
One of the best ways to prevent employees from feeling their role has grown 'stale' is to invest in their future and continuing education. With BeMo's employee benefits program, you can use an employer partnership to your advantage by giving your employees access to professional admissions consulting and career coaching and increasing your employee satisfaction. BeMo's benefits extend to employee families, too, so your employees can rest assured their kids will have the help they need to get into tough undergraduate programs. Or, your employees can take the plunge and go back to school with BeMo backing them!
If you’re looking present the best employee rewards system to your talent team, you’ll want to understand what types of employee rewards currently exist, and decide what options are best for your company, your culture, and the needs of your staff. Always ensure that you’re staying within your budget where necessary and that the rewards you are offering actually matter to your employees!
Generally, there are a few types of employee rewards:
These types of employee rewards can be used in combination with each other. For instance, you may offer performance-based rewards in the form of gift cards (extrinsic), or member based rewards for employees who hit their 2-year mark with your company, such as a free gym membership or priority parking at your office.
Examples of the above best employee reward systems include:
- Your defined company culture, mission, vision, and beliefs; who are you, and who are the people who work for you? How do you want to reward them for their dedication and/or performance?
- Any specific values you have as a business that should be reflected in your rewards. Offer employees useful rewards that can benefit them either in the moment, or in the long-run! As noted previously, a pizza party is fun and can absolutely be a reward for a small contest, but it isn’t going to drive incredible performance, or contribute to good retention.
- Your budget is important when deciding how to reward your employees. Always consider monetary and non-monetary options and consider a tiered system if you’re strapped for cash! Remember, intrinsic rewards, such as recognition and praise, can go a long way.
- The opinions of your employee’s matter! Consider conducting a survey to see what rewards would be most enticing, and useful, to your employees if you’re unsure of what you should offer.
1. What are employee rewards?
Employee rewards can vary greatly by company, but are additional perks employees are given/awarded either for great performance, for winning a competition, or simply because they work for your company! There are a few types of rewards that can be given, and they can co-occur with one another:
· Intrinsic—praises, recognition of personal achievements, promotions
· Extrinsic—gift cards, a raise, a small gift, company swag
· Monetary—similar to extrinsic rewards, a cash bonus or reward, or salary increase
· Non-monetary—gym memberships, parking spaces, wellness perks, development and education perks
· Performance based—rewards that are given based on performance, for example, exceeding sales goals, or, winning a team contest due
· Member based—rewards that are given simply because they are a member of your team, these can include company retreats or annual holiday bonuses
2. Why is it important to implement the best employee rewards systems?
Anybody can offer a reward, like a company hoodie or a gift card, but understanding what types of rewards there are, and which ones can best suit your company and your staff, is key to your talent acquisition and team retention strategy! Happy employees are productive employees, as are motivated ones! Keeping your team engaged and working toward a goal, as well as a reward, is a good way to boost morale and performance. In general, people like to feel appreciated, so offering even the smallest reward, such as verbal praise, can help motivate and inspire any employee.
3. Does offering employee benefits count as a reward?
No. Benefits are a separate part of your compensation model, and while rewards can be offered as an extension of benefits and as a ‘perk’ in your model, benefits are not to be considered a reward that employees have to work toward earning! You could offer a reward such as a gym membership that coincides with any wellness benefits you currently offer, but the main difference is that benefits are a part of the total compensation an employee will earn annually, as stated in their contract, and unless it’s a member-based reward, employees usually have to perform well or win a contest to earn rewards at work.
4. I offer bonuses to my employees, is this considered a reward?
Yes, but there are different kinds. Bonuses can be offered as a reward for either performance, or, for member-based workplace models. For example, some employees are awarded with bonuses or raises when they exceed expectations quarterly, annually, or to reward them for their success with a certain project, whereas others may be rewarded with a Christmas bonus each year, regardless of their performance. And, commission-based bonuses are calculated based on the amount of sales an employee makes, which speaks to their performance.
5. What types of things can I do to incorporate the best employee reward systems at my company?
Do some research if you aren’t sure where to begin, or, whether or not you’re offering the best benefits to your employees. A great way to understand what your employees and what kind of rewards motivate them is by conducting a survey. Survey’s are easy to create on platforms like Survey Monkey, and can be kept anonymous. This way, you can ask questions and leave room for feedback to gauge what services and additional perks your employees would benefit from receiving as a reward, either annually or as a potential reward for good performance. You can also look at what your competitors are offering, and reassess your company mission, culture, values, and budget to decide what is best for your team.
Rewards can come in all shapes and sizes, and you can alternate what you offer for certain accomplishments. Combining some friendly competition and non-monetary prizes, such as gift cards, lunches, or memberships, as rewards with regular performance reviews, raises, bonuses and promotions means that your staff will have incentive to work hard, achieve success, exceed goals, and grow within your company and win fun, useful rewards, too.
6. I have a low budget, but still want to offer rewards, is praise enough?
If you don’t have the budget to offer your employees large bonuses, raises, or expensive rewards there are a few things you should consider. Firstly, intrinsic rewards, such as social praise, or private recognition, can go a long way in terms of making an employee feel cared for and motivated. This is the type of reward you should offer regularly, as it doesn’t warrant any exceptional performance or even much thought! A simple thank you, shout-out, or moment of recognition for somebody can brighten their day and make them feel excited to work hard for a company that notices them.
However, the effectiveness of praise will wear off if it’s offered in place of other rewards over time, like bonuses, performance raises, and promotions. If you’re on a budget, consider how you should offer rewards, when, and to whom. Employees who work hard and deserve to be in a higher position, for example, will also require higher pay. The same can be said for an employee who regularly exceeds their targets and goals…they may wonder, after a year or so, when their bonus or raise will be announced. In order to retain your best talent, you must invest in an adequate reward system, if not the best!
7. Why should I consider offering academic/educational services as a reward to my employees?
Offering academic consultation is a great reward for employees that will make your stand out as an employer who truly cares about professional development and the futures of your employee’s children! This unique reward can be very beneficial and meaningful to employees, and certainly goes a lot further than a gift card or pizza party would! When employees know that they themselves, and their children, will have access to support in the form of academic consultation and preparatory services available, it will surely lift a weight off the shoulders of busy, stressed out parents who work hard in order to provide the best for their family. And, if it’s offered as an incentive for performance, employees will surely be inclined to work toward such a reward! Employees who wish to return to school as mature students, and their young adults with promising academic futures will be able to seek help from the experts at BeMo to prepare for their exams, interviews, and futures in undergraduate programs and/or graduate school.