October 5, 2023
Employee rewards systems, also known as incentive programs or recognition programs, have become integral to modern HR strategies. These systems are designed to acknowledge and appreciate the efforts and contributions of employees within an organization.
In this article, we will explore the significance of such systems and how they can positively impact an organization.
Reward systems for employees are motivational tactics that organizations use to help their staff feel encouraged to complete high-quality work. They involve giving employees rewards, such as money, gifts, praise, or recognition, for their achievements and contributions.
What are the various types of employee rewards, and how can you choose the best one for your organization? Let's explore these options to help you make an informed decision that aligns with your employees' needs and preferences.
Monetary rewards encompass financial incentives such as bonuses, commissions, profit-sharing, and stock options. They boost employee satisfaction, performance, and loyalty by recognizing and rewarding their efforts with tangible financial benefits.
These are rewards that don’t involve money but rather other perks or benefits, such as flexible work arrangements, learning opportunities, wellness programs, company lunches, gift cards, etc. This type of rewarding system is typically more cost-efficient and can even be more sought after than monetary rewards.
This desirability is directly linked to their relevance to employees. If you align rewards with individual preferences or overarching circumstances, they will be elevated. For example, teams dealing with a tight deadline for an important project will appreciate it if you provide a meal prep kit delivery service so they can eat well without being left out of pocket.
Recognition rewards revolve around acknowledging and appreciating employees' achievements and contributions through feedback, praise, awards, certificates, and badges. They elevate employee morale, boost confidence, and nurture self-esteem, affirming that the organization values and respects their contributions.
Assistance rewards give support and guidance to employees through mentoring, coaching, training, development programs, and career advancement opportunities. These rewards are all about fostering skill development, knowledge acquisition, and professional growth, empowering employees to enhance their competencies.
Gamified rewards infuse elements of gaming, such as goals, points, levels, and competitions, into the reward system. They stimulate employee motivation, facilitate continuous learning, and encourage collaboration by tapping into the intrinsic rewards of mastering challenges, exercising autonomy, and serving a greater purpose.
Some of the different common challenges in reward systems and how to avoid them are:
Challenge: Employees may not grasp the process, criteria, or benefits of the reward system, leading to confusion and frustration.
Solution: Communicate purpose, objectives, and outcomes transparently. Involve employees and managers in system design and implementation.
Challenge: The reward system may not align with organizational goals, creating a mismatch between employee needs and expectations.
Solution: Conduct a comprehensive analysis of the organization and develop a coherent reward strategy consistent with mission, vision, culture, and performance factors.
Challenge: Rewards may not be linked to job performance or the labor market, resulting in incorrect job evaluations and ineffective performance measures.
Solution: Establish proper job evaluation systems, well-defined job descriptions, and industry benchmark comparisons. Connect rewards to performance and behavior through SMART goals and feedback.
Challenge: A reward system that is too cash-focused or general may fail to motivate employees effectively.
Solution: Balance reward types, including monetary, non-monetary, recognition, assistance, and gamified rewards. Personalize rewards to cater to individual preferences and offer opportunities for employees to select or receive surprise rewards.
Creating an effective reward system for your organization can be a challenging but rewarding task. To create an effective reward system for your organization, you can follow these steps:
EdApp is a mobile learning management system that allows you to create and deliver engaging and effective microlearning courses to your employees. This makes EdApp a perfect non-monetary or employee assistance rewards program.
But apart from this, EdApp also has a built-in reward system that can motivate and incentivize your employees to complete their training, upskill them, and improve their performance. Some of EdApp's reward features are:
To use EdApp’s reward system for employees, you can follow these steps:
By using EdApp as a reward system for employees, you can make learning more fun, interactive, and rewarding for your employees and enhance their skills, knowledge, and competencies.
EdApp is a mobile learning management system designed for today’s digital habits, delivering more engaging and effective micro-learning directly to learners anytime and anywhere.
Sign up for this training rewards tool today.
Stephanie is an eLearning content writer for EdApp, a microlearning solution designed for today's digital habits. She creates content about cutting-edge learning technologies and resources to help companies deliver great training experiences. When not absorbed in writing, she spends her time taking care of her dog and binge-watching.