Are you a business owner? And do you ever have a hard time keeping your employees motivated at work? Talk about stressful!
While so many factors contribute to the success of a business, companies are nothing without their employees. So, if you find that the people who work for you aren't engaged when they're on the clock, you might start worrying about the longevity of your business. But try not to worry!
There's a solution, and it's called a rewards system. You can think of it as a way of showing your employees how much you appreciate their effort, value their time, and want to congratulate them for a job well done. An effective employee reward system is the best way to prioritize business success, company culture, and employee retention all at once.
But how are you supposed to know which employee reward systems are worth investing in, especially when there are so many reward systems out there? This complete guide to employee reward systems is here to help you figure that out! Make sure you keep reading to understand how to pick the best employee reward system for your business, whether that's an extrinsic reward program that offers monetary rewards or an intrinsic reward program based on non monetary rewards and points based rewards.
A rewards system is a structured approach to recognizing and rewarding employees who do well at work. The idea is to motivate employees by rewarding them for their contributions and achievements within your organization. An employee reward system can include monetary benefits, non-monetary rewards, and other forms of recognition, like points-based rewards.
Whether your company's employee reward system utilizes non monetary or monetary rewards is up to you! For example, let's say you implement a rewards system that applauds someone who showcases professional development with the title of "Employee of the Month." Non monetary rewards like this will inspire people to focus on their performance metrics and strive to be one of the top performers in the organization.
This is just one of the many rewards offered by an employee reward system, and additional incentives are always an option, too. But either way, make sure you focus on incentivizing and acknowledging your employees. In doing so, there's no doubt that you'll also create a positive and productive work environment where everyone experiences positive reinforcement.
Now that you have a better idea of what a rewards system is, let’s look more closely at why an effective employee reward system is so important. It’s not about the rewards themselves. Instead, the entire point is to increase engage employees, provide timely recognition to your workers, and establish a system that encourages desired behaviors, and cultivates a positive work environment. Let's talk about it!
An employee reward system is a motivator for companies that want to increase their employee engagement levels. When employees feel valued and recognized, they are far more likely to continue trying their best because they will start linking rewards with their professional efforts. And who doesn't want to be compensated — whether with monetary incentives, non monetary awards, and points based rewards — for specific behaviors?
Employee reward systems make it possible to increase employee productivity, applaud the daily efforts of top performers, and reward employees who make consistent contributions to the workplace. It's all about setting up a process where HR professionals and workers in management positions regularly review the performance of employees. From there, employees who uphold company values and benefit the workplace on a consistent basis will receive recognition for their contributions.
Not only do rewards systems provide employees with social recognition and offer professional development opportunities but they also make it so much easier to ensure that your workspace is healthy. By setting clear expectations and recognizing employees who adhere to them, you'll have a company culture with an established system for employees to uphold. An employee reward system essentially ensures that no one is confused about where they stand as part of the organization.
But that's not all! Rewards systems also influence employee retention rates. After all, why would an employee want to walk away from a job opportunity where they feel appreciated, respected, and awarded? A points based rewards program is a surefire way of establishing an organizational culture where turnover rates are low and top talent stays for years on end.
It's no secret that an employee rewards program will contribute to business success, encourage favorable employee performance, and make people feel valuable. But that's not all that a reward system can accomplish! No matter which type of employee reward system you gravitate towards and implement for your company, an employee recognition and reward system will motivate, inspire, recognize, and award workers while fostering a workplace that prioritizes company values.
There's no doubt that one of the main purposes of an employee reward system is motivating employees. Think about it — employees who already understand that they'll be praised for a job well done are motivated by the recognition they'll receive. With those rewards in mind, employees are more likely to put in that extra level of effort in the present in exchange for positive reinforcement and recognition in the future.
With this motivating factor in mind, the productivity and performance of workers are sure to increase. Plus, when employees actively make it a point to not only meet the expectations that are set for them but to exceed them as well, team performance levels will also skyrocket. It's a win-win!
As if that's not impressive enough, highly motivated employees often influence their fellow colleagues as well. According to motivational speaker Jim Rohn, everyone is "the average of the five people you spend the most time with," and a reward system showcases just how true this observation is. When you motivate employees on a small scale, you end up inspiring everyone in the workplace because a reward system creates a domino effect throughout the organization.
Regularly rewarding and recognizing employees also results in decreased rates of burnout. Your employees are far less likely to experience debilitating levels of stress, too, keeping employees engaged and motivated long term. At the end of the day, a motivated workforce yields a productive workforce!
Another objective of rewards systems is recognizing and rewarding employee performance. By highlighting individual accomplishments and celebrating team achievements, companies like yours can showcase appreciation for employees with the assistance of a reward system.
Employee recognition methods can take many forms. Later on in this guide, you'll learn about the difference between extrinsic and intrinsic employee rewards, but for now, just know that employee recognition efforts are most effective when they are relevant and timely. The more you acknowledge hard work and value the effort your employees put into all that they do, the more likely people who work for you will strive to do their best at work.
A well-designed rewards system can create a positive work culture. When employees feel appreciated and valued, they’ll have a favorable attitude towards their workplace as well as the colleagues they collaborate with while on the clock. On that note, a positive work culture results in better teamwork, frequent collaboration, and greater job satisfaction.
As you can see, an employee recognition system creates an environment where employees feel engaged, comfortable, and supported, which are qualities that are key to long-term success. By creating a culture of recognition and appreciation, companies like yours can build stronger relationships with their employees. In turn, a reward system like this will develop higher levels of employee engagement and loyalty over time, too.
Not every effective employee reward system is the same, but each reward program falls into one of two categories: intrinsic and extrinsic. But what are the key differences between these recognition program options? Let's find out!
The easiest way to tell the difference between intrinsic and extrinsic rewards is that the former are non-monetary. Instead of carrying monetary value, an intrinsic recognition program gives employees rewards related to a sense of employee satisfaction and fulfillment from the work they do. For example, intrinsic employee rewards might look like personal growth opportunities, projects that give employees more responsibilities, or verbal praise for a job well done.
Other examples of intrinsic rewards are leadership roles and public recognition. Ultimately, intrinsic rewards tap into the internal motivations of each employee who gets them. Employee rewards classified as intrinsic are centered around the psychological benefits of doing well at work, feeling valued, and knowing your work contributes to something bigger than yourself.
An extrinsic reward program is physical, meaning it typically offers a tangible reward that carries monetary value. This type of rewards program provides employees with awards that are external to the work that they do. This includes bonuses, raises, promotions, and prizes, like a loyalty program, event tickets, or wellness programs.
No matter which type of extrinsic reward you choose, make sure it provides immediate and tangible benefits to your employees. Since they’re often used to incentivize specific behaviors with the goal of accomplishing certain achievements, such systems must be incorporated with careful planning and timely incorporation. such as meeting sales targets or completing projects on time. Truthfully, for the best possible results, it doesn't hurt to combine external awards and intrinsic rewards.
When choosing a rewards system, there are several things you should consider. First of all, make sure the system aligns with your company's values and workplace culture. The awards that you include as part of your reward system should not only motivate employees but it's required that they reflect what your organization is all about.
Ask yourself what your business wants to achieve, and then, shape your reward system around those company's values. After that, consider the flexibility and scalability of the points based system. Rewards system play a crucial role in the growth and adaptability of your company, so it's in your best interest to make sure the system for employees recognition is customizable.
Last — but not least! — don't settle on the first recognition program that promises a favorable employee experience filled with professional development benefits. Instead, consider asking for employee feedback to get an idea of what a user-friendly platform means for your business. The easier a reward points system is for employees to use, the more effective the employee rewards system will be, both in the beginning and in the long run.
Looking for a reward system? Your search ends here! Take a look at these reward points systems that can help you improve the overall employee experience at your company.
Matter is a peer recognition and rewards platform that allows employees to recognize and celebrate each other’s work. The best part is that Matter is easy to integrate with both Slack and Microsoft Teams, making it a breeze to use as part of your daily workflow.
ThriveSparrow builds a thriving workplace by offering personal rewards and recognition. With the use of data-driven insights, you can use Thrive Sparrow to tailor rewards to individual employee preferences.
Lattice combines performance management with rewards and recognition. It helps companies set goals, track progress, and recognize achievements all in one platform.
ClearCompany is a full talent management system that includes rewards and recognition. By integrating performance reviews and employee feedback, ClearCompany creates a 360-degree approach to talent management.
Workvivo is an employee communication platform that also has rewards and recognition features. It aims to increase employee engagement through interactive social elements.
Achievers is an employee recognition and rewards platform that focuses on fostering a culture of recognition and engagement within organizations. It offers a variety of tools to help employees recognize and reward each other, with options for redeeming points for a range of rewards, including gift cards, experiences, and merchandise.
Recognize is a straightforward recognition platform and reward system. Employees can send and receive recognition badges, which can be redeemed for rewards.
Empuls combines employee engagement with rewards and recognition. Not only does it have multiple reward options but Empuls also integrates with popular HR tools for ease of use.
Workmates is a social intranet platform with built-in rewards and recognition features. It creates a connected and engaged workforce through social interactions as well as recognition tools.
Bonusly is a web-first experience that facilitates employee recognition and rewards. The platform allows employees to give small bonuses to their peers, which can be accumulated and redeemed for a variety of rewards, including gift cards, charity donations, and custom rewards. Bonusly integrates with other tools and platforms, making it easy to incorporate recognition into workflows. The peer-to-peer recognition system is designed to support workplace culture and employee engagement.
Workhuman is a global rewards and recognition platform. This option creates a culture of appreciation through peer-to-peer recognition and meaningful rewards.
Deel is a rewards and incentives platform. It has multiple reward options — from a gift card to an experience — with the goal of offering something that suits everyone's preferences.
Vantage Circle is an employee engagement platform with rewards and recognition features. With its incorporation of continuous recognition, this resource creates a positive workplace culture.
Choosing the best rewards system for your organization requires thought. Start by understanding your organization’s needs and goals. What do you want to achieve with a rewards system?
Next, get your key stakeholders involved in the decision-making process. Ask for input from HR, management, and employees to make sure the system meets everyone’s needs.
And finally, give free trials and demos a try. Test out different platforms to see what works best for your organization. Also, never rush your decision — after all, choosing the right rewards system for your business can have a long-term impact on your company’s success, so keep that in mind.
Implementing a rewards system is a great way to increase engagement, motivation, and retention. Just remember — the key to a successful rewards system is not the rewards themselves but the recognition and appreciative culture it creates for businesses. Once you decide on a rewards system, don't hesitate to tell your employees about it!
Getting everyone involved is the best thing you can do. Make sure remember to regularly review and update the system to keep it working as intended. And if you're ready to implement a rewards system as early as today, start by adding Matter — available for both Slack and Microsoft Teams — to your workspace now!
