Employee loyalty matters a lot when it comes to the overall efficiency of an organization. Studies suggest that most employees consider workplace recognition as the biggest driver of motivation. This is the reason why almost every organization is using employee reward programs to retain their employees. Companies think that they are putting maximum effort into employee recognition, however, recent research has found that only 19% of employees consider themselves to be ‘very engaged’ at their workplaces.
An effective employee rewards program is essential for every organization. Companies having highly engaged workforce are likely to perform much better than the ones with less engaged employees. For an organization to be successful, its employee productivity and satisfaction matter a lot. If you are trying to boost employee morale, productivity, and retention in your organization, you must implement an employee rewards and recognition program. Let us help you understand the basics before diving deeper into detail:
What is an Employee Rewards Program?
An employee rewards program can be simply defined as a rewards scheme that focuses on rewarding and recognizing employees for their work. These rewards and benefits are given to employees to keep them motivated and encourage them to stay loyal to their organization. The rewards can be in the form of monetary incentives or non-monetary benefits but should be valuable for the employees. Many organizations put effort into designing engagement activities for employees and rewards programs to keep their workforce motivated for longer periods.
How to Build a Rewards Program for Employees?
To build successful rewards programs for employees, you can follow the steps listed below:
1. Set Clear Objectives
Before designing and implementing a reward program for employees, it is important to set the goals you intend to achieve with this program. Your goal may be to boost employee engagement, improve company culture, or build a better brand reputation. Whatever it is, you must be very clear about your objectives before implementing an employee rewards program. Also, set a budget that you want to spend on your employee rewards program and make sure that your stick to it. When you have a vision, designing and implementing a rewards program according to it becomes much easier.
2. Partner with a Rewards & Loyalty Solution Provider
Designing a rewards program and implementing it can be a challenging process. For an employee rewards program to be successful, it is important to ensure that it is managed by someone who has a good knowledge of rewards, understands your business objectives, and can run the program smoothly. Rewards and loyalty solution providers like RewardPort can help you with the same. Their team of experienced marketing professionals can build and implement an employee rewards program that suits your company culture.
3. Define The Characteristics of the Program
Defining the characteristics of your employee rewards program is another crucial step to follow while designing the program. Some ideal characteristics of a corporate employees rewards program are as follows:
- Timely: The rewards and recognition should be offered at the right time. Delayed recognition is not as valuable as timely rewards. You should recognize your employees as soon as they achieve a milestone or perform well at work.
- Specific: Your employee rewards program should be specific. Every employee must understand that a certain kind of performance can get them a reward or recognition at the workplace.
- Frequent: Rewards or recognition should be offered regularly. The more often you recognize your employees, the more engaged and motivated they feel at work.
4. Set Clear Criteria for Rewards
To make your employee rewards program look meaningful, it is essential to set the criteria for rewards and recognition. Your employees should not feel that the program is biased and rewards anyone randomly without any specific criterion. Clearly define what type of work or performance is going to be rewarded and how often.
5. Implement The Program
Once you have decided on your objectives, type of rewards, characteristics, and criteria for your employee rewards program, you can finally move further to implement it. Make your employees aware of the rewards and benefits of this program and get them on board. Also, make sure that senior management keeps track of employee performance and advocates it.
6. Measure Its Success
Running a corporate employee rewards program doesn’t make much sense if you don’t track its success. You can compare the productivity and engagement of your employees before and after the implementation of the program. See how your employee retention rate changes and conduct a survey to understand customer satisfaction rates. Ensure that you track the performance of this program regularly and upgrade it over time.
Build A Customized Rewards Program To Boost Employee Productivity
While building a rewards program for employees, make sure that you get it customized according to your organizational requirements. The program must add value to your employees and eventually bring more productivity to your organization. You can partner with RewardPort, which is one of India’s top rewards and loyalty solution providers. Along with planning the best engagement activities for employees, RewardPort can help you design a rewards program that is suitable for your company.
Frequently Asked Questions:
Q1: What is an Employee Rewards Program?
A1: An Employee Rewards Program is a structured scheme designed to reward and recognize employees for their contributions and efforts at the workplace. These rewards and benefits are intended to motivate employees and foster loyalty to their organization. Rewards can take the form of monetary incentives or non-monetary perks, but they should hold value for the employees.
Q2: Why is Employee Loyalty Important for an Organization?
A2: Employee loyalty is crucial for an organization’s overall efficiency and success. Loyal employees tend to be more engaged, productive, and satisfied with their work, which can lead to better company performance. Additionally, loyal employees are more likely to stay with the organization, reducing turnover costs.
Q3: How can an Employee Rewards Program Improve Employee Engagement?
A3: An Employee Rewards Program can enhance employee engagement by recognizing and rewarding specific achievements and contributions. When employees see that their efforts are acknowledged and appreciated, they become more motivated and engaged in their work.
