Employee rewards are incentives given to staff members based on individual performance, team performance, or the overall performance of the organization. These rewards may come in the form of commission payments, one-time bonuses, pay raises, stock options, and "swag" such as corporate discounts, sporting event tickets, and extra time off.
Offering rewards to your employees is one of the most effective ways to boost team morale, motivate staff to work harder, and retain your top performers. While a reward system can involve cash, there are many other types of incentives that can help you build a positive, productive work team. Below, we'll take a look at four common types of employee reward systems.
Monetary Reward Systems
The most common type of monetary reward system is an annual or semi-annual bonus. These mid-year and end-of-year incentives are great for encouraging healthy competition between employees with respect to performance and productivity. Other examples of monetary rewards include cash awards, profit sharing plans, and stock options. In many industries, monetary incentives are enough to get maximum productivity your of employees. This type of reward system works best with employees who are motivated by cold, hard cash.
Non-Monetary Reward Systems
A non-monetary reward system could be something as simple as a "top performer" or "employee of the month" certificate. This type of reward satisfies an employee's psychological desire to be recognized for his or her efforts. Other types of non-monetary rewards to consider are extra time off, flexible work hours, corporate discounts (such as a gym membership), and free parking.
Employee Assistance Programs
Employee assistance programs are designed to help workers achieve greater work-life balance by supporting employees' physical and psychological health. Some employee programs offer health-related corporate discounts, such as fitness memberships. Other employee assistance programs provide help to employees coping with work stress, family problems, and grief. Employee assistance programs are a great way to support your staff members with their home responsibilities so they'll give their best performance at work.
Employee Recognition Programs
Research shows that employees who are recognized for their contributions and accomplishments tend to work harder and have more positive workplace attitudes. Employee recognition could be as simple as verbal praise or as formal as an award ceremony. Depending on the type of employee recognition given rewards can be doled out daily, weekly, or at the end of the month. As with the other types of reward systems, employee recognition benefits both the employer and the employee by helping create a more productive, positive work environment.