The benefits of a recognition and reward strategy are widely known, but implementing a successful one can be challenging. Gifting someone a hamper or a bottle of wine may seem like a great idea, but have you considered their dietary requirements and if they drink? Nevertheless, some rewards do have a universal appeal and consistently provide a healthy ROI. You just need to know what they are.
Employee recognition strategies take time to plan and implement. Then, you need to start thinking about how you will integrate rewards.
It's a lot of work, but it's worth it, as a solid reward and recognition strategy can reduce employee turnover, boost productivity, and even decrease absence rates. When this happens, every cent invested begins to pay for itself and more.
We recommend a points-based reward system and letting employees choose their rewards. This way, there are no hamper or alcohol mishaps. You can then build your other core benefits around it.
Rewards and recognition are a cornerstone of the employee experience. Without some form of recognition or reward, employees don't feel valued, which will harm their experience — no matter how good other aspects of it are.
Now, the terms recognition and reward shouldn't be used interchangeably. Recognition is more associated with positive feedback, such as when someone has done something well, and their manager or peers tell them so. It's a limitless form of appreciation.
However, a reward would be more appropriate when an employee has achieved something more significant. Unlike recognition — rewards, such as reward vouchers and gift cards aren't limitless, so managers use them more sparingly.
When an organisation strikes the right balance between recognition and reward, it will see considerable improvements in motivation, productivity, and engagement. That said, this does take some time as a cultural shift has to begin for these effects to occur — which doesn't happen overnight.
The benefits of employee reward and recognition programs far outweigh their costs, and employees who genuinely feel valued are:
With benefits like these, it's no surprise that organisations with the best employee experience prioritise reward and recognition. But how do you effectively reward and recognise your employees?
Understanding what goes into a reward and recognition strategy can be overwhelming, especially if you've never created one before. Fortunately, we've broken down what to do in six simple steps.
Custom rewards have the most significant impact on incentivising employees. However, they are the most difficult to award. First, to give someone a reward they genuinely value, you have to know them well enough and understand their hobbies and interests. Nowadays this is more challenging as senior team members may have to manage remote colleagues who they don't engage with on a regular basis — even the strongest leaders will find this difficult at times.
However, with Perkbox's points-based reward system, this is easier, as employees can choose something they want from over 8,500 rewards. Moreover, because Perkbox works with international brand partners, all of your employees can benefit from the platform, regardless of what country they work from.
For a truly custom experience, Perkbox does offer the option to add company-specific custom rewards. Let's say high achievers get lunch with the CEO or an extra day off. You can include all of these rewards in the app, alongside those included with Perkbox.
Incentives are among the most powerful drivers of performance and are essential in any successful reward and recognition program. However, not all rewards are equal, and this is due to differences in what your employees value.
This is why a points-based reward system, such as what Perkbox offers, is becoming the go-to solution for HR teams who want to overhaul their current incentive strategies.
With Perkbox, managers attach points to each message or recognition they send. Employees can redeem the points immediately or save them for something more special. The more points an employee has, the bigger the reward they can redeem. Plus, with thousands of rewards spanning many categories, from DIY to beauty, there is something for everyone.
Encouraging peer-to-peer recognition helps employees spotlight achievements that managers may not see. Perhaps an employee has been especially helpful to their colleague, or they've cheered someone up on a bad day. These small acts of kindness do wonders for your culture but aren't easily recognised by managers because they are so personal.
When coming from a peer, praise is also less likely to feel like a performance review and more like an organic expression of gratitude. As a bonus, if you have a formal recognition program that peers contribute to, everyone can hear and celebrate stories of good work in the company. Having a recognition program is a valuable team perk as it uplifts team morale and supports a healthy company culture.
When using Perkbox, employees can recognise each other with a real-time recognition feed. What's more, they can tag each recognition to company values so everyone knows why their behaviour was celebrated.
Moreover, encouraging peers to celebrate each other is one of the most effective ways to build an inclusive culture where everybody feels welcome.
Incorporating wellbeing into a reward and recognition strategy is a great way of embedding it into your company culture. Rewarding employees with the opportunity to take an extra day off — or put points towards a voucher for a day out, demonstrates you care about their wellbeing and health.
Taking the same approach with your teams who work away from the office can also help boost remote employee engagement. While working from home has plenty of wellbeing benefits, there are negatives, such as a lack of face-to-face interaction. Consequently, checking in with remote teams regularly is important to see if they're doing well.
Giving employees the tools to care for their mental, physical, and financial health is also something to prioritise if you want a fighting-fit workforce. Perkbox's library of wellbeing content has everything your teams need to stay happy and healthy. From energising HIIT workouts to relaxing yoga flows, all resources are accessible 24/7 and are completely ad-free.
What is a personal milestone? Think birthdays and weddings — or anything that is a significant life event. You can also celebrate other out-of-work achievements too, such as donating blood, running a marathon, or adopting a cat.
Taking the time to celebrate events not directly tied to work shows you care about your teams' lives and don't just see them as a collection of employee numbers. Doing this builds loyalty and contributes to a healthy employee experience.
Perkbox's culture tool lets you publicly share personal milestones with custom cards. Think of it as a digital noticeboard that everyone can view from their desktops, phones, and tablets. Each card supports various attachments, including images, videos, PDFs, and more.
This may seem obvious and small, but a simple thank you or a job well done goes a long way. How you thank someone though, is just as important as remembering to do it. You don't need to write an essay detailing every reason why you appreciate them, but it does involve some tact.
Sometimes, it's easier to handwrite a thank you note, as the process gives you time to think about the words you'll be using. Nevertheless, if you follow this handy rule of three, all of your notes will read sincerely.
So, when you're in a pinch and can't find the right words, think of these three points to get started.
Perkbox is an all-one-employee experience solution that includes everything you need to deliver a solid reward and recognition strategy.
It differs from other reward programs because employees can choose the rewards they want — using points managers allocate to them on the app.
Because employees are in control, you get a much higher ROI as they are choosing something they value and will want to work towards.
Celebrate and motivate your employees no matter where they’re working — in one building, remotely or across multiple locations.
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