It’s no secret that people want to feel appreciated. For years, business owners have tried different tactics to motivate and encourage their employees. Some attempts have been more successful than others.
What kinds of things must be considered to make sure that an employee reward solution is successful? What kind of program will strike that chord with employees, making them feel appreciated and motivated to achieve for your company? In this guide, we’ll look at some common employee reward solutions and how you can implement one within your own company.
What are Employee Reward Solutions?
Employee reward solutions, or recognition programs, are implemented by a business for helping employees perfect their work habits and set themselves up for success. Many employee reward programs allow for peer-to-peer recognition, ensuring that the company isn’t solely motivating from the top and encouraging peer support. These platforms not only improve well-being and contentment, but they also aid in cross-departmental collaboration and self-management.
Employee reward solutions and systems can increase employee engagement. According to one study, employee engagement can substantially increase productivity within a company. It suggests what many of us may intuitively know–engaged employees tend to outperform unengaged employees. In fact, businesses that have a high level of employee engagement are about 21% more profitable.
Employee reward solutions can be built from the bottom up, or they can (more efficiently) be structured and delivered through a third-party employee reward solution. So what do effective employee rewards that get results look like, and what do you need to consider? Let’s take a look.
When are Employee Rewards Typically Offered?
Company leaders and HR can get really creative with this; however, there are a few common scenarios that provide good examples of when an employee might be given an award through an employee reward solutions program.
One example is an employee’s first day on the job. Should you know who your staff are before they start working? Yes, we believe so. Besides, we think the arduous process of interviewing, negotiating, and surviving the first few days or weeks is deserving of praise! The advantages are twofold: new employees are promptly welcomed into the fold, and existing employees are able to break the ice.
Work anniversaries are another great example of when to reward employees. It’s one of the most common forms of modern employee recognition, despite the fact that this type of reward is sometimes badly executed.
Work anniversaries are significant milestones in one’s career, and they should be commemorated as such. When employees reach a work anniversary, they usually reflect on their past, ponder their future, and assess their workplace well-being.
A rewards solution done well will provide a meaningful gift that will show employees that they are valued. Receiving a generic certificate or plaque, while those types of rewards have their place, risks feeling impersonal, leading to dissatisfaction with the company’s efforts.
Another time for awards is when a project is completed. When a project is finished, launched, or published, it’s always a relief, so now is a good moment to appreciate all of the hard work that went into it. Recognize team members as soon as possible––recognition has a much greater impact in the moment than when it is postponed.
What to Consider When Building a Successful Employee Reward Solution or System
When to offer rewards isn’t the only thing to consider when it comes to a successful employee rewards solution. Some other things include:
Peer-to-Peer and Social Recognition
One of the many things to consider when building a successful employee reward solution Recognition amongst peers is just as vital as recognition between managers and employees.
Rewards can really improve how valued an employee feels– but there’s more to it than just physical gifts. Employee performance improves and productivity increases when employees feel valued by their teammates.This also helps to promote business culture by aligning employee behavior with that of the company they work for.
Successful companies encourage peer-to-peer recognition because it has been shown to improve employee retention and reduce turnover. Peer-to-peer recognition develops a culture of gratitude and acknowledgment, as well as a sense of belonging and initiative, all of which contribute to strong teams and efficient productivity.
Social recognition, like peer-to-peer recognition, is also important. Employee recognition and reward based on social recognition is a non-monetary system. Employees might feel valued for their job when they receive social acknowledgment, which can range from a simple “Thank you” to a shout-out during company meetings. It’s critical since it improves staff retention, morale, and engagement, as well as having a good impact on the firm as a whole.
It’s also important to consider performance management when creating or choosing an employee reward solution. The term “performance management” refers to a method of evaluating employee performance.
A performance-based compensation system is based on how much employees give to the firm, how much value they bring, and how well they accomplish their goals. Likewise, employees are more motivated and thrive in a workplace that focuses on recognizing them for their achievements.
Another crucial component of reward systems is reward points. Employees are rewarded for their hard work using a point-based system. For completing tasks and fulfilling objectives, employees earn points that can be traded for a gift, a day off, or other benefits.
The point-based compensation system is vital and beneficial for many firms since it allows them to monitor their employees’ performance and solve any potential concerns or roadblocks that may arise. Reward points are a valuable employee engagement technique that has a favorable impact on an organization’s productivity and atmosphere.
Online collaboration and remote work communication are also important components for keeping teams well-coordinated and linked, regardless of how far apart they are.
It is critical for employees to communicate with one another in order to perform their best work. Many businesses are increasingly including their staff incentive programs into the collaboration software they use on a regular basis. It doesn’t matter if your coworker is across the hall or on the other side of the world; they deserve to be recognized for their hard work.
Finally, there’s the issue of feedback. It is critical to receive feedback in order to improve, change, or maintain work standards. Feedback is the most effective technique to ensure that positive work habits are maintained and that varied challenges are overcome. Employees and coworkers can take responsibility for their professional development by soliciting feedback.
What Makes Employees Feel Appreciated and Motivated?
Employee reward solutions can absolutely make a big difference in how appreciated an employee feels. Employee recognition and appreciation programs show employees that their efforts and professional work products are valued by the company.
Reward programs have a positive impact on the workplace, pushing employees to improve their performance and increase sales while also instilling a sense of loyalty to the firm. Employee recognition programs that call out employees for exceptional achievement boost employee morale and promote their sense of worth. The employee enjoys the fact that his efforts have been recognized, which motivates him to reach new professional heights.
Colleagues who observe the fact that superior performance is valued by top management may increase their own productivity levels in the knowledge that their efforts will be noticed and rewarded. Employees who believe they are valued by their bosses are more likely to put in extra effort since they know their contributions are important to the organization.
It’s not just about feeling appreciated or improving one’s sense of worth, either. According to one study, only about 15% of employees around the world feel motivated at the workplace. That number dwindles to 10% in Europe and picks up just a bit in the U.S. at 33%.
Appreciation can lead to motivation– and employee reward solutions can help with that. Employees who are recognized for their unique ideas and concepts can improve the quality of a company’s products and services. Employees who believe their ideas are valued and that credit is given where credit is due are more likely to reject complacency and strive for excellence.
This can lead to the long-term retention of key employees as well as a steady supply of new products and services that keep the company competitive in the industry.
Building an Employee Rewards and Recognition Program Set by Step
Employee reward solutions come in many forms. Most are through trustworthy software platforms that implement the reward program of your choice, which we’ll discuss more in the next section. When it comes to gathering the material needed for your reward program, it helps to follow these steps:
Clarify Your Goals
Make a list of the reasons you want to begin a program. Do you wish to excite and inspire your workers? How can you boost your sales? If you replied the latter, you should reconsider your motivation. There must be a larger aim for these types of programs; if there isn’t one, people will perceive them as self-serving. Begin with a plan to add value to your employees’ life by valuing their investment in your company.
Take the Time to Speak with Employees
Employee personalities might be as diametrically opposed as night and day. Some people find it motivating to be recognized in public, while others prefer a quiet pat on the back. Meet with employees one-on-one to learn about their preferences and how they want to be honored. This doesn’t have to be a huge project. If you don’t have time to interview each employee individually, we recommend sending out a quick survey with open-ended questions.
Create a Management Group or Committee.
Appoint a few employees to oversee your recognition program, regardless of the size of your company. Start with a small committee and add persons to the group as they gain recognition. Make serving on the recognition committee a privilege, and promote it widely inside the firm.
The committee can then be entrusted with developing recognition algorithms based on survey replies. Consider offering professional development seminars to employees who want to be acknowledged for acquiring a new skill.
Consider adopting peer-to-peer awards, which can take the shape of modest certificates or even thank-you lunches, if someone would like to be recognized by their direct coworkers. After the committee has been created, suggest automated mechanisms for tracking employee milestones like anniversaries and promotions.
The key to a successful recognition program is to establish relevant recognition criteria that aren’t based on arbitrary selection or partiality. Recognition should be something special and accessible for everyone in the firm, not just front office or sales workers.
Get Management Involved.
While kind remarks from anyone are appreciated, it is especially meaningful when it comes from a direct manager or supervisor. Human resources should not be used to handle your thank-you notes or rewards. People desire to be noticed by the people with whom they work. For rewards that get results, ensure that supervisors are involved in the recognition and reward process.
Practice and Repeat.
Even with a committee dedicated completely to appreciation events, small business owners may find it difficult to speak positively—but practice makes perfect. Take note of how you feel when you give praise. It’s not as difficult as you may imagine, and it doesn’t take much time. Make sure the recognition is founded on a relationship, as there should be genuine feelings involved.
Invest in the Right Software for Your Employee Rewards
If you’re interested in providing employee rewards in an accessible, easy, yet effective way, Xceleration is here to help. Xceleration is an employee reward, recognition, and incentive firm that offers a broad range of services. RewardStation, our patented web-based platform, is used to provide employee reward solutions all over the world.
Because the platform is built to be adaptable to fulfill the needs of our clients, our product and services can be used in a variety of ways. “Employee Recognition & Engagement” and “Sales/Distributor Incentives” are the two most popular program categories, each with a variety of programs, components, features, and other elements that assist clients in actively achieving their company goals while showing they value their employees. Get in touch with the team at Xceleration today to learn more about how our product can get results in your workplace.