Employee engagement is primarily driven by good relationships and incentives. It is critical to successfully recognize and reward your staff to retain top talent and satisfy them. Being inventive and considerate when it comes to employee rewards is crucial. Several organizations have begun to employ incentives for hiring as a component of their business culture. This isn’t just a baseless suggestion, either. Research has found that employees who are engaged in intensive mental tasks tend to perform better when they are pursuing some type of non-monetary reward. To put it simply, rewards boost productivity, and such rewards don’t just have to be cash.
No matter what sector your organization is part of or how large your workforce is, you should implement HR reward programs. Such programs can be pretty easy to implement through a rewards and recognition platform as well, so there is really no need to launch an internal development project just to give your employees access to rewards.
In this guide, we’ll break down why a company needs to reward employees consistently and how HR can properly do so.
Understanding HR Reward Programs
There are so many different ways HR can reward employees without digging too much into the organization’s resources. Before we dive further, it helps to really understand what HR reward programs actually are.
A company’s employee reward and recognition program is a unique program designed to thank employees for their contributions to the company’s success. Effective employee recognition programs assist in recruiting and retaining top talent by making employees feel valued, appreciated, and encouraged.
Typically, an organization’s human resources department will manage, deliver, and be part of the creation process for such reward programs. However, teams outside of HR need to be part of the process as well.
Why Companies Need a Consistent and Public System of Employee Rewards
It’s no secret that today’s businesses need to have a consistent and public system of rewarding employees for different achievements, such as work anniversaries, meeting or exceeding sales quotas, learning new skills, achieving goals while working remotely, and more.
Morale, productivity, and retention will all improve as a consequence of an effective recognition program. However, the essential distinction is that those should not be your initial objectives. Companies must express genuine appreciation to create a successful recognition program. Genuine appreciation will inevitably result in increased morale, productivity, and retention.
Let’s not ignore the Great Resignation, either. This phenomenon is happening because so many employees feel underappreciated, poorly treated, and underpaid. A consistent and public system of employee rewards and recognition could keep your employees loyal to your organization.
Another reason to put in place an employee appreciation program is to make employees feel appreciated as individuals. Every one of us wants to be respected by our bosses and coworkers.
Employees do not want to be considered “work units” whose worth is solely based on the amount of work they produce. Instead, they need to be recognized as individuals with distinct qualities, personalities, and skills. In a nutshell, it’s all about making employees feel valued.
Employees must also believe that their efforts are valued by their employers. Worrying about whether or not one’s employment is significant can lead to poor performance and a lack of interest in their current company. This is particularly common for employees who work for huge firms where they are more likely to feel like cogs in the machine. The truth is that everyone’s contribution is critical to the overall picture.
Employees often lose sight of where their contributions fit in when mired down in the daily routine. Employees benefit from recognition because it reminds them why their job is essential and how they contribute to the greater picture, ultimately making them feel more connected and happy with their job.
The need to build a good atmosphere of trust and respect is probably one of the most important reasons why an HR reward program is necessary. The importance of corporate culture has never been greater. It’s fantastic to be able to trust your coworkers and know that they have your back. Feeling like your team is continually in competition or covertly cheering against one another, on the other hand, is poisonous. In this situation employees become unhappy and burnt out.
Employee appreciation helps to bring individuals together in a respectful and trusting environment. As a result, a positive workplace emerges, one that is welcoming, pleasant, and cooperative.
HR shouldn’t be the only department implementing rewards for employees, either. Management and other leaders in the organization should be part of the HR reward system. This will create a company culture of appreciation– which is the ultimate goal of such reward programs.
The message is clear: Employee appreciation impacts more than just the employees. It has an impact on the entire business. It’s no longer enough to receive a certificate once a year.
How to Implement a Successful Employee Rewards or Recognition Program
An HR reward program is clearly important. But how can HR effectively create a program that engages employees? What is the first step to making a rewards program something that is actually beneficial to the company and its employees?
Knowing how to recognize and reward employees is the not-so-magic recipe for increasing employee engagement and implementing a rewards program. Not every employee recognition and incentive program is the same. It’s all about emphasizing genuine employee gratitude.
Best Practices for HR Employee Rewards
There are a few crucial factors to remember in order to deliver genuine acknowledgment. First and foremost, genuine acknowledgment comes at the right time. Don’t wait until an employee’s yearly performance evaluation to recognize them. Instead, reward them on a regular basis to keep them motivated and interested. As a result, it becomes a part of your culture.
Recognition that is meaningful is also particular and relevant. When honoring employees, make sure they understand why they are being honored. Thank you is insufficient.
Tell your staff what you like about them and how their actions have benefited you or the company. You can encourage the repetition of positive behaviors, create clear expectations, and promote business values by being detailed.
Keep in mind that genuine acknowledgment can come in a variety of forms. Using various forms of recognition keeps things interesting and exciting, as well as allows you to reach out to diverse groups of employees. Some employees, for example, might be less enthusiastic about receiving public acknowledgment at business meetings, but they will preserve every tangible “gift” or award they receive.
It’s also important to make sure that the words “thank you” make their way into your rewards program. It’s astonishing how often managers give their staff rewards like parties or bonuses without ever expressing the words “thank you.” It’s good to have a monthly happy hour to thank staff, but it won’t mean anything unless there’s true gratitude. It won’t make your staff feel vital to the company, and it won’t help you achieve your engagement goals.
To avoid typical HR reward program implementation problems, take the time to establish a fantastic recognition program. Partner with a great online rewards platform to make the implementation easy. Figure out what supports your company’s goals, beliefs, and employee requirements. The balance between the organization’s needs and employee needs might be difficult to find, but doing so will result in an excellent recognition program that keeps everyone happy.
Different Ways for HR to Reward Employees
How can HR implement a good rewards program? There are many different ideas an HR team can implement to make employees feel valued.
To start, it helps to remember that meaningful experiences are the key to building authentic connections in a community of employees. Whether you’re creating a hybrid work environment for your workers or going completely remote, there’s a strong desire to reclaim genuine ties and a feeling of shared community that was lost during the pandemic. No amount of money, points, or gift cards will ever be enough to fill that hole. Experiences, on the other hand, will.
Employees can share their experiences with family members, close friends, and coworkers, for example. As they convert their kitchen into a science lab, study new languages together, master challenging culinary techniques, and even go on group excursions, keep an eye on them. Giving your employees an experience they’ve always desired is the best way to reward them.
Consider developing an employee rewards program for work milestones, new staff referrals, sales or lead generation incentives, spot recognition, and other reasons. Giving your coworkers an amazing experience, whether simple or luxurious, is a terrific way to thank them for their dedicated work.
HR can also set up a program that allows employees to get away from the workplace while staying connected. Many businesses host Christmas parties, but you can honor outstanding performance all year by organizing a spontaneous activity that allows workers to spend some time together away from the office.
A shared interest vacation may not be essential if you have a small team of employees. Consider giving staff an extra day off or allowing them to leave a few hours early on Fridays if they are putting in extra hours or weekend time to complete a project.
Free career coaching and professional development are another unique option for HR to reward employees. Employees work for a variety of reasons other than a wage, and the best approach to foster their non-monetary motives is to provide them with opportunities to progress in their careers.
You are feeding each employee’s love for their profession and making them feel more invested in your organization’s overall business success by giving them the chance to learn new skills and take on new challenges.
An item-based incentives scheme might also be considered by HR. Keep in mind that this does not always imply the distribution of money. Although competitive pay and compensation are necessary to maintain a sense of well-being among your staff, today’s employees demand more than just their basic salary to feel properly appreciated— and it doesn’t have to be money. That’s why any fully-fledged social recognition program should be able to give a wide range of staff incentives in the form of gift cards, vacation and leisure, and products like tablet computers or other hot tech items. Offering gift cards and a large range of things from a catalog has the distinct advantage of allowing each employee to choose their own personal incentive.
Xceleration Can Provide the HR Reward Program You Need
Now that we’ve broken down how HR can reward employees, how can those rewards be delivered to employees? Many organizations will launch their own rewards programs, but designing and implementing an in-house application can be tiresome and resource-heavy. You’re already focusing time and energy on developing your HR reward program– when it comes to delivering that program, you should leave the process in the hands of professionals.
Xceleration created the RewardStation platform for enterprises of all sizes to deliver rewards to employees. Our unique application is flexible and robust, complete with a wide range of user-friendly features your employees can use to achieve their goals and gain rewards from HR. Ready to launch your employee rewards program with Xceleration? We recommend signing up to receive more information on how to get started. We can’t wait to start working with you to boost employee engagement.