It’s becoming more widely known that a reward system in the work place can boost morale, motivation, and contentment in the workplace. Employees thrive on recognition and feeling valued.
In fact, a point-based reward system for your staff could substantially boost their productivity and general quality of life. According to research, companies with greater than average levels of employee engagement saw a 27 percent increase in earnings and a 38 percent increase in productivity. Simply put, a high-quality employee points reward system could indeed be beneficial to both your employees and your company as a whole.
Such systems might seem complicated, and professional, top-notch technology exists to help streamline the process of implementing an employee rewards system. Despite any complexities involved in startup, the benefits greatly outweigh the effort involved.
In this guide, we’ll define what an employee points reward system is, how they work, their advantages, and how to implement one into your business.
What is an Employee Points Reward System?
Workplace gamification, in whatever form, keeps employees engaged, happy, motivated, and productive. Receiving praise helps them feel accomplished, whether they are competing with one another or simply working toward a goal. They’ll be inspired to do it again, and others will want to get involved as a result of seeing their peers succeed.
Employee gamification is implemented in the form of a rewards program. It’s the bedrock for respecting, rewarding, and recognizing employees and their contributions.
Systems and procedures fluctuate from one organization to the next, depending on the size, culture, and other factors within the organization. However, at the end of the day, your employee recognition and reward system should encourage a culture of recognition and motivate, engage, and retain high-performing employees.
So, what is a point-based employee incentive program? It’s one effective approach to reward employees for their contributions. Employees can accumulate points over a period of time that can eventually lead to a benefit, such as a gift, a day off, an experience, a better parking place, or a variety of other benefits.
Because they are immediate, point systems work well. Even if a worker does not receive a tangible advantage straight away, receiving points feels like a reward. They have the understanding that they are working for something bigger.
Apart from assisting and motivating employees, point systems assist managers in tracking productivity indicators and employee performance, allowing any concerns to be handled with training or other resources as needed.
How Employee Reward Systems Work in the Workplace
Public praise, an easy-to-understand points system, and significant rewards that employees value are all part of an effective points-based rewards system.
Recognition is public and socially shared under this model. It can come from all levels –employees, supervisors, management, peers, and across functional lines. Employees can earn points the same way as customers do through loyalty programs. The more points they rack up, the more they feel noticed for their efforts.
The flexibility and customization that these systems provide in terms of employee rewards is a big benefit. Gift vouchers may be preferred by some members of the team. Others may utilize rewards for experience activities such as kayaking. Others may choose to donate their points to charity. And they’ll all be more involved.
Are Employee Reward Systems Useful?
Yes. Employees that feel unappreciated and neglected are pretty prevalent in every company. Even when they have outperformed expectations, this is true. Many employees who do not feel valued are more likely to quit their employment.
That said, one of the most significant wasted opportunities among managers and leaders is employee reward and recognition. It not only motivates your employees, but it also gives them a sense of accomplishment.
Individual involvement and commitment to the company will increase when employees feel properly valued for their work. One of the most significant benefits of implementing a recognition and rewards program in your business is the ability to retain employees.
It’s also worth noting that employee rewards systems are only really useful if salary or financial “rewards” are separated from the program. Money motivates (sometimes), but this point system should be about something other than cash.
How to Organize an Employee Reward System
Consider how the system will operate for each team before you start rewarding personnel. Employees are frequently rewarded with a certain number of points for accomplishing a specific action or assignment.
As they accumulate points, you offer them a gift or a perk when they reach a certain number. For example, one employee earns weekly points for great accomplishments. When that employee reaches 500 points, you offer them a tangible reward, ideally one that they can choose for themselves from a customized selection of rewards.
Your plan will be determined by your budget, so think about the kind of rewards you can give and how often you can do so. Although you may not always be able to offer huge, superstar rewards, some employees may find that an executive parking space is just as satisfying.
To help you track the relevant performance metrics, you can connect your points system to your existing workflows and applications. If you have a time and attendance system, for example, you can easily track how many days people miss as they work toward earning more points.
Agents in the call center should be using an online ticketing system already. This method can be easily linked to your rewards system to improve accuracy and insight into daily performance and customer satisfaction statistics.
To get started, it’s critical to use a third-party rewards platform. This eliminates the requirement to create a new application from the ground up. Later in this guide, we’ll go over this in further detail.
Things to Consider Before Implementing an Employee Points Reward System
Before you can set up an effective rewards system, you must first select what to award and when. What methods will your employees use to earn points? You may not want to praise them for doing routine tasks or reaching minimum standards, but only when they go above and beyond. Of course, this needs to be defined.
For example, you might not reward points for an employee simply showing up for work. But, if they go a month without missing a day, that may be deserving of some recognition.
Similarly, a ticket resolution system works successfully for the majority of staff. For example, what if IT agents get 200 points for closing a set amount of tickets each day or week? Before you launch your points-based reward program, make sure you have a strategy in place.
You should also think about how you will reward your personnel. This may differ depending on the department and team, and you may want to have various rewards for different seasons. Request feedback from employees on what they would want to get in exchange for their hard work. When they’re ready to pay out, how would they prefer to spend their points?
One great plan for this is to set up a store-style scheme where employees can “purchase” rewards with the points they earn. They may decide to choose smaller monthly advantages, such as an extra vacation day, or save up for a larger reward at the end of the quarter, such as an all-expenses-paid weekend trip for two.
The more staff you can involve in planning, the better. Unless you ask or try several possibilities, you won’t know which awards will drive your employees the most. Employees who will be participating in the program should be polled to gauge interest and understand what they value the most.
Always be upfront and honest about your intentions for a points system. Introduce training or webinars to explain the new program so they understand how it works. Tell them who they may contact if they have any questions along the way.
Ideas for Employee Points Reward Systems
Really think about what rewards are relevant to your workforce, industry and niche. The following are just a few ideas to get the ball rolling.
Perks at work are excellent incentives. Not only do they come at a low cost to your company, but they also demonstrate acknowledgment in the workplace for all of your employees and foster the kind of pleasant camaraderie that helps businesses thrive.
The Best Parking Spot
A parking lot adjacent to the office or in the shade demonstrates a high level of value and accomplishment. For a week, give it to your winner as a daily reminder of how much you value them. You could even get a little sign with their name put on it as an added bonus to emphasize that the place is truly ‘theirs’ for the week.
Food and Coffee
Everyone loves free food and coffee. Gift cards to popular eateries or coffee shops are effective rewards because they not only offer the initial reward in a wide variety of options, but they also provide employees with either a convenience (having the gift card handy when they’re on the go) or an experience (enjoying a special night out because they’ve got a gift card).
How a Rewards Platform Can Help
Using an employee rewards platform to distribute rewards to your staff is great way to make an employee points reward system that is effective but simple and streamlined.
Thanks to employee recognition platforms, businesses can now manage their reward spending in one place. Budgets may be allocated from a central pot and tracked down to each employee-reward designator, which is especially beneficial for companies with many locations or foreign operations. Cost-of-living adjustments and localized currencies can also be readily accounted for.
By employing a specialized platform to handle incentives, managers may better examine the success of reward budgets, which award categories are most popular among employees, and the potential return-on-investment of the program.
Employees can also use digital reward catalogs to redeem and choose what matters most to them, making online incentive management more cost-effective for organizations.
As the workplace grows more flexible, remote working becomes more prevalent, and corporate processes frequently transcend borders, ensuring that everyone inside an organization is recognized – no matter where they are based – can become a thankless endeavor.
Employee reward platforms make it simple for HR to oversee this process, ensuring that any employee with access to the internet has the same recognition experience as a colleague at corporate headquarters.
In addition, employee rewards platforms are simple to maintain. Imagine starting an employee initiative that is simple to set up, allows you to track everything that happens, and allows you to simply manage access, control levels, and funding allocation – all with a few clicks.
For businesses, managing offline recognition programs can cause communication and visibility issues. It’s difficult, time-consuming, and exhausting to send emails, print certificates, share data, and generally drive the dialogue forward.
HR, on the other hand, can expect a much more streamlined, organized experience when it comes to initiating an employee recognition program using a specialized platform, as well as less administrative effort required to keep the program running once it’s launched.
Xceleration Can Help You Launch Your Employee Points Reward System Today
Now that we know what employee points reward systems are and why a third-party platform is the way to go, now what? Xceleration is here to help. Xceleration’s Reward Station platform is perfect for virtually any business in any industry that needs to launch a new employee points-based reward platform.
This enterprise-level solution is designed to make employee rewards simple and intuitive with a wide range of features. It’s also mobile-responsive, meaning employees can keep track of their points easily, on the go. Our team takes a bespoke approach to employee rewards software and can help you set up your department or whole company’s custom reward system with ease. Contact us to learn more and start a successful points reward system today.