10+ Employee Rewards System Benefits in 2024

Employee rewards systems are essential for businesses looking to boost employee recognition and reward programs. Companies often seek solutions aligning with their unique organizational goals, promoting employee engagement, and effectively recognizing contributions. As workplaces continue to evolve, the demand for a rewards and recognition platform that offers flexibility, customization, and integration with tools like Slack and Microsoft Teams has become increasingly vital.

Matter is designed to help companies foster a culture where employees feel valued and appreciated. With features like kudos for peer recognition, Feedback Friday sessions for continuous engagement and survey feedback for gathering insights, Matter offers a comprehensive solution for employee rewards. Whether your focus is on monetary rewards, social recognition, or aligning recognition programs with your company's core values, selecting the right employee reward system is crucial. This guide will investigate the significance of employee rewards and the effective utilization of various platforms to satisfy your company's requirements.

10 best employee rewards systems: features, pricing, and customer reviews

1. Matter

About Matter: Matter is a Slack-first and Teams-first employee rewards platform designed to enhance workplace culture through peer-to-peer recognition, continuous feedback, and automated rewards. The platform seamlessly integrates with Microsoft Teams and Slack, enabling employees to send and receive recognition without leaving their regular communication tools. With its user-friendly interface, Matter allows employees to create customizable kudos cards that can reflect company values, celebrate inside jokes, or mark special occasions like birthdays and work anniversaries.

Matter emphasizes simplicity and ease of use, requiring just 2 minutes to install and 5-10 minutes to customize. Most of the platform's features are automated, so organizations can set it up and let it run with minimal ongoing management. The Feedback Friday feature encourages regular, end-of-week kudos and rewards to boost employee morale, and it's completely customizable to suit any company's needs. The platform also incentivizes survey participation by offering rewards that are distributed automatically through Slack or Teams.

Matter's rewards options include charity donations, digital gift cards, prepaid Visa/Mastercards, and custom-branded rewards like company merchandise, lunch with the CEO, or a vacation day. Its unique coin system resets weekly to encourage frequent and genuine participation, setting it apart from other platforms.

Matter main features:

• Kudos for peer recognition: Fun, customizable kudos cards that employees can send through Slack or Teams to recognize each other's achievements.
• Feedback Friday: An automated, customizable feature that prompts weekly recognition, helping teams end the week on a high note.
• Automated celebrations: Automatically celebrate birthdays and work anniversaries with customizable rewards.
• Incentivized surveys: Distribute surveys through Slack or Teams with built-in incentives to increase participation.
• Flexible rewards system: Offers a variety of rewards, including charitable donations, digital gift cards, prepaid cards, and custom-branded rewards.
• User-friendly and automated: Quick installation and customization with minimal ongoing management needed.

Matter pricing:

• Free Forever: $0/user/month
• Basic: $1/user/month, billed annually
• Pro: $3/user/month, billed annually
• Pro + Surveys: $5/user/month, billed annually

For more information, please visit the Matter pricing page.

Matter G2 score: Matter has a G2 score of 4.7/5 based on user reviews.

Notable Matter customers: Sephora, Petco, Shell, Siemens, JiffyLube, Microsoft, SXSW, Bolt, True Classic, and Carrier.

What Matter customers are saying on G2: “I love how easy it is for employees to recognize each other with kudos. Matter has boosted morale, increased employee engagement, and it's now a strong presence in our company culture.” - Michael Margolese, Senior Human Resources Manager at Trend Hunter

2. Bonusly

About Bonusly: Bonusly is a popular employee recognition and rewards platform designed to create a culture of appreciation and enhance employee engagement. With its simple and engaging interface, Bonusly allows employees to give small bonuses to their peers, direct reports, and managers, reinforcing positive behaviors and contributions in real time. The platform supports peer-to-peer recognition through a public social recognition feed, displaying bonuses for everyone to see, helping build a sense of community and shared success.

Bonusly main features:

• Peer-to-peer recognition: Allows employees to give recognition directly to their peers through a public social feed.
• Automated awards: Automatically celebrates birthdays, anniversaries, and other milestones with recognition and rewards.
• Customizable rewards catalog: Offers various rewards, including gift cards, cash, charity donations, and company swag.
• Seamless integrations: Connects with Slack, Microsoft Teams, and other tools to streamline recognition activities.
• Advanced analytics: Provides detailed insights into recognition trends and employee engagement.

Bonusly pricing:

• Appreciate: $2/user/month, billed annually
• Connect: $5/user/month, billed annually
• Achieve: $7/user/month, billed annually

For more information, please visit the Bonusly pricing page.

Bonusly G2 score: Bonusly has a G2 score of 4.7/5 based on user reviews.

Notable Bonusly customers: Toast, Tactile Medical, Seat Geek, Qualtrics, PaloAlto Networks, MongoDB, and Headspace.

What Bonusly customers are saying on G2: “The aspect of gifs and uploading photos and a fun UI with funny messages about bugs is nice. Creates a system of a popularity contest. It's added a bit of fun. But not a replacement for lousy workplace culture.” - Verified User in Apparel & Fashion

3. Nectar HR

About Nectar HR: Nectar HR is an employee recognition platform that helps organizations build a positive workplace culture by making recognition simple, frequent, and meaningful. The platform enables both peer-to-peer and manager-to-employee recognition through features like shoutouts and points that can be tied directly to core company values. Nectar HR integrates seamlessly with tools like Slack and Microsoft Teams, ensuring that recognition activities are a natural part of daily communication and workflows.

Nectar HR main features:

• Peer-to-peer and manager recognition: Facilitates recognition with customizable shoutouts tied to company core values.
• Flexible rewards options: Includes digital gift cards, Amazon items, branded merchandise, and charitable donations.
• Automated celebrations: Automatically schedules and sends recognition for birthdays, work anniversaries, and other key milestones.
• Seamless integrations: Integrates with Slack, Microsoft Teams, and HRIS systems for easy recognition management.
• Advanced analytics: Offers insights into recognition trends, employee engagement, and morale.

Nectar HR pricing:

• Plus $5/user/month, billed annually
• Premium $6/user/month, billed annually
• Custom [Book Demo for Quote]

For more information, please visit the NectarHR pricing page.

Nectar HR G2 score: Nectar HR has a G2 score of 4.7/5 based on user reviews.

Notable Nectar HR customers: Redfin, SHRM. Lasko, Heineken, MLB, Calendly, and Golden State Warriors.

What Nectar HR customers are saying on G2: “An encouraging way to connect with people. It seems like a way to just obtain a reward for sake of false encouragement.” - Verified User in Primary/Secondary Education

4. Motivosity

About Motivosity: Motivosity is a people-first employee recognition and rewards platform designed to create a culture of appreciation, engagement, and connection. It offers comprehensive tools to recognize employees regularly, automate reward programs, and maintain a positive workplace environment. Motivosity supports peer-to-peer recognition, service awards, birthdays, and spot recognition through features like the ThanksMatters Visa card, which offers diverse incentives, such as charitable donations, gift vouchers, and company-branded merchandise.

Motivosity main features:

• Peer-to-peer recognition: Enables employees to recognize each other in real-time through a social feed.
• Automated rewards and service awards: Automates celebrations for birthdays, work anniversaries, and spot recognition.
• Customizable rewards options: Offers a wide range of rewards, including the ThanksMatters Visa card, digital gift cards, and branded merchandise.
• Engagement insights and analytics: Provides tools to measure employee sentiment and track the effectiveness of recognition programs.
• Seamless integrations: Connects with Slack, Microsoft Teams, and HRIS systems to enhance the user experience.

Motivosity pricing:

• Standard Plan: Starts at $3,000 minimum annual spend; includes peer appreciation, global rewards, service awards, swag connector, and basic analytics.
• Pro Plan: Comprises all functionalities of the Standard plan, plus advanced recognition tools, custom fields, and dedicated support, with pricing available upon request.
• Custom Plan: Offers personalized solutions tailored to specific business needs; pricing is available upon request.

For more information, please visit the Motivosity pricing page.

Motivosity G2 score: Motivosity has a G2 score of 4.7/5 based on user reviews.

Notable Motivosity customers: Atlabank, Bosch, KPMG, WGU, GreatClips, Cotopaxi, FUJIFILM, and Salerabit ZionsBank.

What Motivosity customers are saying on G2: “I love the idea of what it will be. I love the focus on positivity and improving the culture of your company. I'm very disappointed in thd customer care. You have to schedule an appointment to get help and it's very frustrating. We paid for the more expensive package and haven't even been able to accurately use it because they don't have the lead completely working correct. We spent A LOT of money to not get the help or compensation st least until they get the kinks worked out.” - Tresa B., Owner

5. Assembly

About Assembly: Assembly is an award-winning employee recognition and incentives platform created to promote a culture of gratitude and participation within businesses. It offers an adaptable and customizable method of employee recognition, offering tools for peer-to-peer recognition, employee feedback, and rewards management. The platform seamlessly integrates with various HRIS systems, Microsoft Teams, and Slack, ensuring that recognition becomes an organic component of daily workflows. Assembly supports many features to help organizations create a positive, inclusive workplace culture. 

Assembly main features:

• Peer-to-peer recognition: Enables employees to send shoutouts and recognition through a social feed.
• Customizable rewards catalog: Offers thousands of reward options, including gift cards, charitable donations, and personalized culture rewards.
• Automated programs: Celebrates employee birthdays, anniversaries, and other milestones automatically.
• Seamless integrations: Connects with Slack, Microsoft Teams, HRIS systems, and other workplace tools to streamline recognition activities.
• Actionable insights: Provides employee engagement and satisfaction data to help improve recognition programs.

Assembly pricing:

• Recognition: $2 per member/month, billed annually
• Engagement: $4 per member/month, billed annually
• Digital HQ: $4 per member/month, billed annually
• Custom: Talk to sales for pricing.

For more information, please visit the Assembly pricing page.

Assembly G2 score: Assembly has a G2 score of 4.8/5 based on user reviews.

Notable Assembly customers: NESCO, StubHub, Coca-Cola, Perforce, Bambee, Amazon, Click Funnels, Allbirds, and PODS.

What Assembly customers are saying on G2: “I love the gifs! It makes relevant and adds a laugh/smile to the compliment you're either giving or receiving. The one thing I think I don't like is there is no way to give constructive criticism. Maybe have the "manager" or "admin" be able to receive anonymous feedback about others to help with employee reviews and what not.” - Verified User in Hospital & Health Care

6. Awardco

About Awardco: Awardco is a comprehensive employee rewards and recognition platform known for its extensive global rewards network and deep integration with Amazon Business. This platform allows organizations to create customized recognition programs that are automated, scalable, and adaptable to accommodate the distinctive requirements of both large and small businesses. With Awardco, companies can recognize employees through various ways, including service awards, spot recognitions, birthdays, anniversaries, and life events, all while leveraging millions of reward options like gift cards, travel, events, and merchandise without any markups.

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Awardco main features:

• Global rewards marketplace: Offers a vast selection of rewards, including Amazon products, gift cards, experiences, hotels, and events.
• Automated recognition programs: Simplifies the celebration of milestones, such as service anniversaries, birthdays, and onboarding, with automated features.
• Peer-to-peer and manager recognition: Supports recognition across all levels of the organization through a social feed.
• Advanced integrations: Seamlessly integrates with HRIS platforms and communication tools like Slack and Microsoft Teams.
• Comprehensive data analytics: Provides insights into employee engagement, recognition trends, and program effectiveness.

Awardco pricing: Pricing is not listed on the website. To learn more about pricing, you'll need to schedule a demo/sales call with Awardco.

Awardco G2 score: Awardco has a G2 score of 4.8/5 based on user reviews.

Notable Awardco customers: Visionworks, ClickUp, Ultradent, Pilot, Texas Roadhouse, TaylorMade, Hunt Brothers Pizza, and Pacific Life.

What Awardco customers are saying on G2: “My company just switched to Awardco. It sounds good in theory. But it's not used to reward hard work or going above and beyond like they pitch it. Most of the managers don't know how to give extra points. Yes, there's a lot of options for redeeming points, but it's near impossible to get points outside of a predetermined points schedule.” - Verified User in Facilities Services

7. Achievers

About Achievers: Achievers is a comprehensive employee recognition and rewards platform designed to drive employee engagement, productivity, and retention through frequent and meaningful recognition. The platform encourages employees to recognize each other regularly, creating a culture of appreciation and reinforcing behaviors that align with company values. Achievers integrates with popular workplace tools such as Slack, Microsoft Teams, and Outlook, enabling employees to send and receive recognition from within the applications they already use.

Achievers main features:

• Social recognition: Facilitates peer-to-peer recognition with a social feed to celebrate everyday contributions and reinforce positive behaviors.
• Points-based recognition: Allows employees to earn points for recognition, which can be redeemed for various rewards.
• Global rewards marketplace: Offers access to 3 million+ reward options, including merchandise, gift cards, and charitable donations.
• Seamless integrations: Connects with Slack, Microsoft Teams, Outlook, and other tools for easy recognition management.
• Advanced analytics: Provides data on program effectiveness, employee engagement, and recognition trends.

Achievers pricing: Pricing is not listed on the website. To learn more about pricing, you'll need to schedule a demo/sales call with Achievers.

Achievers G2 score: Achievers has a G2 score of 4.7/5 based on user reviews.

Notable Achievers customers: Discover, Samsung, General Motors, Kellanova, Dyson, Scotiabank, Panasonic, Meijer, CVSHealth, and Zurich.

What Achievers customers are saying on G2: “The fact that I had a reward from my company; also there weren't a lot of items. I couldn't spend the money on my personal Amazon account and the representative who I chatted with didn't know how to direct me.” - Verified User in Chemicals

8. Kudos

About Kudos: Kudos is an employee recognition and rewards platform designed to enhance workplace culture by driving performance, increasing engagement, and reducing turnover through meaningful recognition. The platform facilitates peer-to-peer recognition and top-down awards, allowing employees to receive recognition messages that connect their contributions to company values. Kudos uses a unique methodology called "Performance Recognition," which captures the impact level and aligns it with company objectives, creating valuable data for organizational insights.

Kudos main features:

• Peer-to-peer and top-down recognition: Allows for both peer and manager-driven recognition, promoting a culture of appreciation throughout the organization.
• Customizable rewards catalog: Offers various rewards, from gift cards and merchandise to experiences and charitable donations.
• Automated milestones and celebrations: Supports automated recognition for birthdays, anniversaries, and other key events.
• Advanced analytics and insights: Provides comprehensive data on employee engagement and recognition trends.
• Seamless integrations: Integrates with Slack, Microsoft Teams, Outlook, and HRIS platforms to streamline recognition processes.
• AI Recognition Assistant and pulse surveys: Features AI tools for improved recognition delivery and pulse surveys for gauging employee sentiment.

Kudos pricing: Pricing is not listed on the website. To learn more about pricing, you'll need to schedule a demo/sales call with Kudos.

Kudos G2 score: Kudos has a G2 score of 4.8/5 based on user reviews.

Notable Kudos customers: Engie, Chewy, Make-A-Wish, MTN, WilsonHCG, and MU Health Care.

What Kudos customers are saying on G2: “I love that I can still keep up with my former team mates and reward them. The notifications get pushed down quickly when I'm checking them or if I want to find a specific 

9. Guusto

About Guusto: Guusto is a flexible employee recognition and rewards platform designed to be easy to use and effective across all types of workplaces, including frontline environments such as healthcare, retail, hospitality, and manufacturing. Unlike traditional recognition tools, Guusto eliminates the need for points-based systems, instead allowing managers and peers to send direct rewards, such as digital gift cards, branded company swag, charitable donations, and custom rewards. The platform is built to be inclusive, offering multiple delivery methods, including web, mobile apps, SMS, TV display, and printable options. This ensures that all employees can participate, regardless of their tech proficiency or location.

Guusto main features:

• Flexible rewards delivery: Offers various reward options, including gift cards, custom company swag, and charity donations, redeemable via web, app, SMS, or print.
• Automated recognition programs: Supports celebrations for service anniversaries, birthdays, and other milestones automatically.
• No markup or setup fees: Ensures 100% of every dollar spent on recognition goes directly to employees, with no hidden costs.
• Manager empowerment tools: Allows managers to create and manage budgets, assign different admins, and customize recognition programs.
• Advanced reporting and analytics: Provides full visibility into program participation, spending, and effectiveness.

Guusto pricing:

• Free: $0 per month, Single user account
• Lite: $40 per month, Single user account
• Essential: $120 per month, Starts with 30 seats
• Premium: $400 per month, Starts with 80 seats

For more information, please visit the Guusto pricing page.

Guusto G2 score: Guusto has a G2 score of 4.9/5 based on user reviews.

Notable Guusto customers: Carlton Cards, Bell Media, The Body Shop, DLA Piper, Harry Rosen, Marriott, and Canada Life.

What Guusto customers are saying on G2: “They used to be able to redeem gift into a prepaid Visa/Mastercard gift card, but they don't do it anymore.” - Ka Kay C., Inventory Analyst

10. Mo

About Mo: Mo is an employee recognition and engagement platform designed to create a thriving workplace culture by amplifying moments of appreciation and belonging. The platform focuses on building positive habits through "Boosts," which are automated prompts that encourage employees to share and celebrate "Moments"—recognition posts that highlight achievements, special occasions, or everyday contributions. These Moments can be shared publicly or privately and are enriched with fun elements like GIFs, photos, and emojis to reflect the company's culture.

Mo main features:

• Automated recognition prompts (Boosts): Encourages frequent recognition and feedback by automatically reminding employees to share Moments that align with company goals.
• Flexible rewards system: Includes global reward options, custom rewards stores, and multi-currency support, making it suitable for distributed teams.
• Seamless integrations: Connects with Microsoft Teams, Slack, and HRIS platforms to ensure recognition becomes a part of daily workflows.
• Insights and analytics: Provides detailed reporting on recognition activities, engagement levels, and adherence to company values.
• Peer-to-peer and top-down recognition: Supports both public and private recognition to build a culture of appreciation across all levels of the organization.

Mo pricing:

• Appreciate: $2.25/user/month, billed annually
• Engage: $4.50/user/month, billed annually
• Transform: Talk to sales for pricing.

For more information, please visit the Mo pricing page.

Mo G2 score: Mo has a G2 score of 4.7/5 based on user reviews.

Notable Mo customers: AXOL, Quark, harrier, SGN, Punch, ocado, Joseph Heller, and Tottenham Spurs.

What Mo customers are saying on G2: “Mo could become a great Mobile App. Currently what I don't like about Mo is that it still uses the web version which is a bit old school right now.” - Muhammad Ubaid A.

What is an employee rewards system?

An employee rewards system is a structured approach that organizations use to recognize and reward employees for their contributions, achievements, and positive behaviors. This system can range from simple initiatives, like providing an Amazon gift card to an employee of the month, to more comprehensive, points-based programs that leverage modern recognition platforms to provide a variety of rewards. The main goal of any employee rewards system is to deliver rewards that employees genuinely value, thereby enhancing motivation, engagement, and retention within the organization​.

An effective employee rewards system typically combines both monetary rewards (such as bonuses, gift cards, and profit-sharing options) and non-monetary rewards (like public recognition, professional development opportunities, and flexible work arrangements). The best systems are those that are consistent, personalized, and relevant to the employees' interests and needs. This means rewards should be provided frequently and tailored to match personal preferences rather than being generic or sporadic​.

Additionally, a successful rewards system often includes elements such as peer-to-peer recognition, which allows employees at all levels to give recognition to each other, cultivating a work environment that is conducive to employee satisfaction and appreciation. The system can be supported by technology platforms that integrate with everyday tools like Slack or Microsoft Teams, making recognition activities a seamless part of the daily workflow.

Why is an employee rewards system important?

An employee rewards system is crucial for several reasons. It promotes a strong corporate culture by recognizing and praising employee accomplishments. When employees feel valued and appreciated, their job happiness, motivation, and overall involvement improve. This, in turn, results in a more committed workforce, improved productivity, and improved employee performance.

A well-structured employee rewards system also contributes to employee retention by reducing turnover rates. According to Gallup, companies with strong employee recognition programs experience up to a 20% increase in employee engagement and retention. Rewarding employees consistently can help organizations build a reputation as a desirable workplace, attracting top talent and supporting long-term business success.

Moreover, employee reward systems help align employees' efforts with the organization's goals and core values. By recognizing specific behaviors and achievements, companies can incentivize actions that drive business outcomes and reinforce a work culture of continuous improvement. These systems also provide opportunities for professional development, social recognition, and employee feedback, all of which are crucial for fostering a friendly and inclusive workplace atmosphere.

Pros and cons of an employee rewards system

Implementing an employee rewards system can be profitable for a company; however, there are specific obstacles to overcome.​ Comprehending the advantages and disadvantages of these systems enables businesses to make informed choices and develop more efficient employee appreciation programs.

Pros of an employee rewards system

1. ‍Boosts employee motivation and engagement: Employee reward systems can substantially improve motivation and engagement by acknowledging and compensating exemplary performance. When employees perceive their efforts as recognized, they are more inclined to remain engaged and productive, resulting in elevated job satisfaction and enhanced overall performance.‍
2. Improves employee retention: An organized rewards system cultivates a pleasant work atmosphere where employees feel appreciated and valued, hence decreasing turnover rates. Recognizing employees' efforts regularly can lead to greater loyalty, reducing the costs associated with recruiting and training new staff.‍
3. Enhances company culture: Reward systems promote a more positive workplace environment by promoting behaviors that align with the company's core values. Peer-to-peer recognition, in particular, encourages collaboration and teamwork, enhancing overall company culture.‍
4. Encourages professional development: Rewards that focus on professional development opportunities, such as access to courses or certifications, can encourage employees to improve their abilities and significantly contribute to the company's goals. This benefits the employees and ensures the company has a more skilled workforce.‍
5. Increases productivity and performance: Rewarding employees for their achievements incentivizes them to maintain or improve their performance levels. This approach can directly impact the company's bottom line by aligning employee efforts with the organization's objectives and key performance indicators (KPIs).‍
6. Supports employee wellness and morale: Incorporating non-monetary rewards, such as wellness programs or flexible work arrangements, can enhance employee well-being and morale. It is more probable that employees will maintain a positive attitude and perform at their highest level when they perceive that they are valued and supported.

Cons of an employee rewards system

1. ‍Can create unhealthy competition: While rewards can boost motivation, they can also lead to unhealthy competition among employees, particularly if the system is perceived as unfair or biased. This can harm teamwork and collaboration, creating divisions within the workforce.‍
2. It may lead to favoritism and perceived unfairness: If the criteria for rewards are not transparent and consistently applied, employees may perceive favoritism, leading to dissatisfaction and a decrease in morale. It is crucial to ensure that the reward system is fair and inclusive to prevent feelings of bias or exclusion.‍
3. Requires significant management and resources: Setting up and maintaining an effective rewards system can be time-consuming and resource-intensive. It requires careful planning, regular monitoring, and modifications to guarantee that it continues to satisfy the company's and its employees' requirements.‍
4. Can focus too heavily on monetary rewards: Over-reliance on monetary rewards can diminish the perceived value of non-monetary recognition, such as public acknowledgment or professional development opportunities. To optimize the system's efficiency, it is imperative to implement a balanced strategy that incorporates both forms of rewards.‍
5. Risk of demotivation if poorly implemented: If the reward system is poorly designed or implemented, it may demotivate employees rather than motivate them. For example, if rewards are too difficult to achieve or if they are perceived as meaningless, employees may become disengaged.‍
6. Potential for short-term motivation: While rewards can motivate employees, they may only provide short-term boosts in performance if not aligned with long-term goals. It's essential to design a system that fosters sustained engagement by incorporating immediate rewards and long-term incentives.

By examining these benefits and negatives, companies may build a more effective employee rewards system that aligns with their specific goals, culture, and values, resulting in a more favorable work environment and promoting commercial success.

How remote teams benefit from an employee rewards system

An effective employee rewards system is crucial for remote teams, helping to enhance engagement, boost morale, and maintain productivity despite physical distance. Here are the key benefits:

Key benefits of a rewards system for remote teams

1. ‍Enhances employee connection and engagement: A well-designed recognition program fosters a sense of belonging and helps employees feel valued, reducing feelings of isolation common in remote work. Integrating peer recognition through digital tools like Slack or Microsoft Teams can encourage frequent interaction and engagement.‍
2. Boosts employee motivation and performance: By rewarding employees for achieving key performance indicators (KPIs) or demonstrating company values, a rewards program keeps remote employees motivated and aligned with company goals, driving productivity and business success.‍
3. Supports a positive remote work environment: A strong workplace reward system promotes a positive work environment by celebrating successes and recognizing employees regularly, contributing to higher morale and job satisfaction.‍
4. Facilitates personalized and frequent recognition: A rewards system that includes monetary and non-monetary rewards, like digital gift cards, wellness programs, or experiential rewards, ensures all employees feel appreciated and catered to, enhancing the employee experience.‍
5. Improves employee retention and satisfaction: Consistent recognition helps remote employees feel appreciated by increasing retention and reducing turnover. A system that regularly rewards and acknowledges effort strengthens commitment to the organization.
6. ‍Promotes professional development and growth: Rewarding employees with opportunities for professional development, such as access to online courses or certifications, empowers employees and aligns their growth with company objectives.‍
7. Aligns remote teams with company values: By connecting rewards to company values and goals, organizations can ensure that remote teams contribute effectively toward achieving business goals.

By implementing a strategic employee reward system, companies can foster a more engaged, productive, and satisfied remote workforce, creating a positive work environment and driving long-term business success.

Employee rewards system statistics

Understanding the impact of an employee rewards system can be crucial for decision-making. Here are some key statistics that highlight how effective employee reward systems can influence employee engagement, performance, and retention:

Key statistics on employee rewards systems

1. ‍Increased employee engagement: Companies with effective rewards and recognition programs have 31% lower voluntary turnover rates compared to those that do not use such systems. Employees who feel recognized are also 2.7 times more likely to be highly engaged at work, contributing to a more productive workplace environment.‍
2. Higher employee performance and productivity: Employees who receive regular recognition are four times more likely to be engaged in their work. Moreover, companies that use a rewards system effectively are 14% more likely to see improvements in individual performance and productivity, as recognition directly correlates with higher motivation and performance levels.‍
3. Improved employee retention rates: A well-structured reward program can lead to a 28% reduction in employee turnover. Recognized employees are more likely to remain with their organization, reducing recruitment and training costs and maintaining business continuity.‍
4. Enhanced employee satisfaction and morale: The value of non-monetary rewards, such as public acknowledgment and gratitude, would be emphasized by managers, and 70% of employees believe that motivation and morale would improve "massively." Employee satisfaction significantly increases when employees feel valued through a balanced system of rewards.‍
5. Increased financial performance for companies: Companies with engaged employees, often supported by a strong recognition and reward system, outperform their competitors by 202%. This includes higher customer ratings, productivity, and profitability, demonstrating the financial benefits of investing in employee rewards systems.‍
6. Frequent recognition boosts employee morale: Organizations that regularly recognize employees experience a 29% increase in employee morale. This frequent recognition helps build a more positive workplace environment, leading to better employee behavior and performance.‍
7. Supports professional development and business success:Organizations that integrate professional development opportunities into their rewards systems report 50% higher employee retention rates. Employees who see clear pathways for growth are more likely to stay and contribute to achieving business goals.

By leveraging these statistics, companies can better understand the importance of an employee rewards system in fostering employee engagement, enhancing performance, improving retention, and driving overall business success.

Trends in 2024 for an employee rewards system

In 2024, employee reward systems are adapting to align with the evolving expectations and requirements of the workforce. Here are some of the key trends that organizations are adopting to enhance employee engagement, satisfaction, and retention:

Key trends in employee rewards systems for 2024

1. ‍Personalized and flexible rewards: Companies are increasingly moving towards personalized rewards tailored to individual employee preferences. This trend recognizes that a generic "one-size-fits-all" approach is less effective. Employees now expect meaningful rewards, such as gift cards, experiences, wellness programs, or time off. Organizations offering various reward options successfully create emotional connections with employees and foster a more engaged and motivated workforce​.‍
2. Integration with daily workflows: Integrating recognition into the daily flow of work is becoming a crucial trend. Businesses are enabling employees to give and receive recognition through platforms they already use, like Slack, Microsoft Teams, or other collaboration tools. This seamless integration ensures that recognition is a consistent and natural part of the workday, making it easier for employees to feel appreciated without interrupting their productivity​.‍
3. High-frequency recognition: There is a growing shift toward high-frequency recognition, where organizations celebrate small, every day wins rather than waiting for annual performance reviews. Frequent recognition helps reinforce positive behaviors, keeps employees motivated, and strengthens a culture of appreciation. Companies that implement high-frequency recognition report improved employee morale and retention​.‍
4. Gamification of recognition: Gamification is gaining traction as a way to make recognition more engaging and fun. Employing gamification components such as points, badges, and leaderboards can enhance employee motivation and promote constructive competition inside companies. Gamification encourages participation and helps build a sense of community among employees, ultimately enhancing employee engagement​.‍
5. Data-driven recognition: In 2024, successful reward programs leverage data to tailor recognition and maximize its impact. Organizations can personalize their recognition efforts by analyzing employee performance and preferences, ensuring they resonate with individual employees. This approach allows for continuous improvement of recognition programs and helps maintain high engagement and satisfaction levels.‍
6. Eco-friendly and socially responsible rewards: More organizations are aligning their rewards programs with their corporate social responsibility (CSR) initiatives by offering eco-friendly rewards. This trend signifies an increasing focus on sustainability, with rewards that may include planting trees, donating to environmental causes, or supporting community projects. Such techniques attract employees who value sustainability and elevate the company's standing as a socially responsible employer​​

These changes underscore the need to develop a flexible, integrated, data-driven 

employee rewards system harmonizing with employee values and business objectives. By adopting these practices, companies can foster a more positive workplace environment, improve employee retention, and achieve long-term business success.

Strategies and ideas for an employee rewards system

Creating an effective employee rewards system involves implementing strategies corresponding to your company's objectives and employee inclinations. Here are several ideas to help companies build a comprehensive and impactful rewards program:

Key strategies for an effective employee rewards system

1. ‍Incorporate both monetary and non-monetary rewards: To maximize the impact of your employee reward program, include a mix of monetary rewards (such as bonuses, gift cards, and profit sharing) and non-monetary rewards (like public recognition, flexible work arrangements, and professional development opportunities). This combination ensures that diverse employee needs and preferences are met, enhancing overall satisfaction and motivation​.‍
2. Tie rewards to specific goals and performance metrics: Ensure that your rewards system is aligned with your organization's goals by tying rewards to specific performance metrics or achievements. This could involve recognizing employees who exceed key performance indicators (KPIs), achieve project milestones, or embody company values. Clear criteria for rewards help employees understand how their contributions are valued and what they need to achieve to be recognized​.‍
3. Promote peer-to-peer recognition: Encourage a culture of appreciation by implementing peer-to-peer recognition programs where employees can recognize and reward each other. This approach empowers team members to acknowledge their colleagues' contributions, fostering a more collaborative and supportive workplace environment. It also makes recognition more meaningful, as it comes from peers who understand the day-to-day efforts involved​.‍
4. Leverage technology for seamless recognition: Use digital platforms integrated with tools like Slack, Microsoft Teams, or other communication apps to facilitate easy and frequent recognition. These tools allow employees to acknowledge their peers' achievements in real-time, making recognition effortless in daily workflows and enhancing visibility across the organization.‍
5. Offer personalized and flexible rewards: Allow employees to choose their rewards from a diverse catalog, including experiential rewards, wellness programs, or charity donations. Personalized rewards show employees that their individual preferences are valued, creating a stronger emotional connection to the company and increasing loyalty and engagement​.‍
6. Implement gamification elements: Introduce game-like features such as points, badges, and leaderboards to make recognition engaging and fun. Gamification can motivate employees to achieve more and participate actively in recognition programs, elevating morale and cultivating a sense of community and amicable competitiveness inside the workplace.‍
7. Create opportunities for professional development: Incorporate professional development opportunities into your rewards system, such as access to training, workshops, or certifications. This not only rewards employees but also supports their growth and aligns with business goals by improving the comprehensive skill set of the workforce.‍
8. Regularly review and update the rewards program: Continuously evaluate the effectiveness of your rewards program by gathering employee feedback and analyzing participation rates and impact on key metrics like employee engagement and retention. The program is consistently updated to ensure that it remains pertinent to the company's objectives and the needs of the employees.

By implementing these strategies, companies can build a dynamic and effective employee rewards system that motivates employees, aligns with organizational goals, and fosters a positive work environment.

Important metrics for measuring the impact of an employee rewards system

Monitoring indicators that demonstrate its influence on employee engagement, satisfaction, and overall business success is critical to ensure your employee rewards system is effective. Here are key metrics to consider:

Key metrics for evaluating an employee rewards system

1. ‍Employee engagement scores: Track engagement levels using surveys or pulse checks. Higher engagement scores often indicate that employees feel valued and motivated, which can be directly linked to the effectiveness of your rewards system.‍
2. Retention rates: Monitor staff turnover rates before and after the implementation of the rewards program. A successful rewards system should improve employee retention, lower turnover costs, and maintain workforce stability.‍
3. Participation rates in recognition programs: Measure how often employees participate in recognition activities, such as giving or receiving rewards. High participation rates suggest that the program is well-received and encourages a culture of recognition.‍
4. Performance metrics: Evaluate changes in productivity and performance metrics. Increased performance, aligned with key performance indicators (KPIs), often reflects a successful rewards system that motivates employees to achieve business goals.‍
5. Employee satisfaction and morale surveys: Regular surveys should be used to gauge employee satisfaction and morale. Positive trends in these surveys can indicate that the rewards program is effectively contributing to a positive work environment.‍
6. Feedback from employees: Collect feedback to understand employees' perceptions of the rewards system. This qualitative data can provide insights into what is working and what may need improvement, ensuring the program remains relevant and effective.‍
7. Return on investment (ROI): Calculate the rewards program's ROI by comparing the rewards and recognition costs against the benefits, such as improved retention, higher productivity, and reduced absenteeism.

By monitoring these metrics, you can assess the effectiveness of your employee rewards system and pinpoint areas that require ongoing enhancement, ensuring that it remains productive and in line with your company's desired outcomes.

Choosing the right employee rewards system for your company

Choosing the most suitable employee rewards system is essential to cultivate a positive work environment, increase employee engagement, and accomplish business objectives. Here are key considerations to help you choose the best system for your company:

Key factors for choosing an employee rewards system

1. ‍Alignment with company values and goals: Choose a rewards system that supports your organization's core values and strategic objectives. For example, if innovation is a core value, select a system that rewards creative contributions and ideas.‍
2. Flexibility and personalization: Look for a system that offers a variety of reward options—monetary and non-monetary—to meet diverse employee preferences. A flexible system allows for personalized recognition, ensuring employees feel appreciated in ways that matter most to them.‍
3. Ease of use and integration: Choose a platform that smoothly interacts with the technologies your employees are already using, such as Slack or Microsoft Teams. This integration ensures recognition becomes a natural part of daily workflows, promoting frequent engagement.‍
4. Scalability and adaptability: Your chosen system should scale with your organization's growth and adapt to changing needs. Ensure it can accommodate more employees and diverse recognition types as your company evolves.‍
5. Data-driven insights: Opt for a system that provides analytics and insights into employee engagement, participation rates, and the overall effectiveness of the rewards program. Data-driven insights help refine the program to better meet organizational and employee needs.‍
6. Cost-effectiveness: Evaluate the system's pricing structure against its potential benefits. Consider both the direct costs, such as subscription fees and reward costs, and indirect costs, such as administrative overhead, to determine its ROI.

Why Matter is the right choice for your company

Matter offers a comprehensive, easy-to-use employee rewards platform that aligns with your company's core values and goals. Matter integrates seamlessly with Slack and Microsoft Teams, enabling peer-to-peer recognition, automated rewards, and weekly recognition habits like Feedback Friday. The platform supports both monetary and non-monetary rewards, such as gift cards, charitable donations, and custom-branded experiences, ensuring flexibility and personalization.

Matter is designed to grow with your organization, offering scalable solutions and data-driven insights to continuously enhance your recognition strategy. With an emphasis on user engagement and simplicity, Matter makes it easy for employees to give and receive recognition, fostering a more positive and productive workplace environment.

Get started with Matter today!

Consider Matter for your employee rewards system to cultivate a more engaged and motivated workforce. Get started with Matter for free today and experience how our platform can transform your company's culture and drive business success.