There's a lot to think about when it comes to Employee Rewards and Recognition Programmes - and one of the biggest decisions is what rewards you'll offer.
It can be hard to know where to start when it comes to the wide world of Employee Rewards and Recognition. From which behaviours to incentivise to how to go about doing it, there's all sorts of decisions to make before you can roll out your programme.
One essential question that you'll need to answer at some point is what rewards to offer. What you decide could make or break your whole rewards programme, so it's definitely something you need to get right. But what rewards make the biggest impact?
There's all sorts of research out there to suggest monetary rewards make the least impact on employees.
It's not cash!
The most traditional employee reward comes in the form of cash bonuses or other monetary prizes. Particularly when it comes to sales teams, cash bonuses are the go-to option. However, just because it's the most commonly used form of incentive doesn't mean it's the most effective.
In fact, there's all sorts of research out there to suggest monetary rewards have the least impact on employees. For example, a study conducted by Monmouth University professor Scott Jeffrey found that employees who were offered a cash reward improved performance by 14.6 per cent. However, those who received non-cash rewards saw a productivity improvement of 38.6 per cent.
While this may surprise many, when you step back and think about it, monetary rewards being less effective actually makes sense. Consider if an employee is given £50 in cash. This will go straight into their account, and while they may be grateful at first, it will often get buried within other transactions. They might spend it on groceries or other everyday items, and not immediately associate what they've bought with the reward you've given them.
Now, consider you spent that same £50 on a music concert or sports event of the employees' choosing. Not only will they be able to remember it much more easily than if they simply spent the money on groceries, but they'll also associate this great event with your company and your rewards programme.
This is why non-monetary, experience-based rewards are some of the best you can offer employees.
One of the best employee rewards you can offer is travel. This takes event-based rewards one step further by offering employees a memorable trip or other travel experience. This is the sort of reward that can be saved for a significant achievement, such as spending 10 or 15 years at your company. It can make a really large impression not just on the employee who's received the award but also on other people who work for your business, who will see what sort of prizes are on offer if they carry out the same behaviours.
Other non-monetary rewards
Things like electronics and household appliances will also make a big impression on your employees.
While events and travel are often reserved for the employees who have accumulated the most points or completed significant achievements, you can still offer small non-monetary rewards that will be more appreciated than cash.
Things like electronics and household appliances will also make a big impression on your employees. Every time they use their new speakers, iPad or whatever other rewards they might have chosen, they will think of your company and how much you care about their efforts.
So, while cash rewards may seem like the most obvious choice, there is actually a whole range of options to choose from when it comes to recognising the achievements of your employees.
If you're thinking about introducing an Employee Rewards Programme at your business and are wondering where to start, contact the experts at Power2Motivate. We have years of experience creating programmes that work, and our extensive global rewards gallery gives employees the option to choose from thousands of different prizes, including electronics, travel and events.