Types of reward incentive programs

Employers can celebrate and reward project completion by planning for project bonuses. Project bonuses usually specify a particular deadline that employees have to meet in order to get a cash reward. When implementing a project-based compensation incentive, clearly list the criteria employees need to meet to get the bonus, including budgetary restrictions and milestones. Project bonuses encourage teamwork and camaraderie, as everyone on the project team can have a stake in whether or not everyone receives a project bonus.

Each person would be motivated to work as a team and help each other accomplish the goal. Performance bonuses are regularly scheduled cash awards that reflect employee success. Salespeople earning a higher commission percentage for making more sales are a common example of performance bonus incentives. Companies generally pay performance bonuses when employees contribute directly to their financial success and growth. Annual or quarterly performance bonuses are a popular way to track employee performance goals and reward top performers.

Read more: How to Motivate Your Employees. Standardized raise systems can also be a great compensation incentive, especially when a company wants to focus on long-term employee retention. Employees become eligible for merit-based pay raises based on performance reviews and meeting certain benchmarks. Unlike performance bonuses which are paid out as one lump incentive, merit-based raises reward employees with long-term salary growth.

Over time, merit-based raises can add up and give employees a strong incentive to continue working for your company. For example, many companies offer cost of living adjustment raises every year. Some also assess employee performance and reward employees who met or exceeded expectations with a higher pay rate. Clearly outline merit-based raise policies in your employee handbook to ensure fair compensation and equal opportunity for growth.

Related: How to Communicate a Pay Raise. Profit-sharing refers to when a profitable company distributes some of its revenue to employees. This is a particularly popular incentive technique among startups who may not be cash-flow positive.

Profit-sharing allows employers to reward employees with the results of their work by giving out higher bonuses when the company makes more profit. Referral bonuses are payments that employees receive in exchange for connecting their employer with a candidate for an open position. Employers offer rewards if they hire someone that an employee recommended and they stay in the position for a minimum amount of time, usually a few months. A gain-sharing plan is a type of incentive where employees receive cash compensation as a result of increased productivity in one or more areas such as customer service, content creation or increased production manufacturing.

In this situation, you estimate the amount of money your company saved based on a more productive work environment. For example, if your manufacturing plant lost over packaged food products in the month of August due to employee error, and only in the month of September, the amount of money you saved would be split among your employees.

Beyond monetary incentives, there are also creative non-cash incentives you can consider offering your employees to boost morale and increase productivity. Some employees may enjoy time spent outside of the workplace. Offer them a free vacation to a local or destination resort.

Offer better workplace equipment such as a nicer desk, computer or chair. This can help employees work more comfortably and efficiently, and let them know that you care about their wellbeing.

Read more: How to Improve Office Ergonomics. Besides your typical paid time off, consider providing additional vacation days to your employees for their improved performance. This helps them achieve a greater work-life balance. Some employees prefer to work in casual clothing such as jeans and a T-shirt. Consider implementing a casual dress day once a week. Bring in outside services such as a chiropractor, food truck, yoga instructor or another service provider.

Give employees a gift card based on their personal preferences, such as a music subscription, a bookstore or a restaurant. Company picnics provide employees with a break from office life. Some examples beyond the traditional picnic in a park include a trip to an amusement park or another recreational facility.

Offer employees free branded swag such as clothing, coffee mugs or water bottles that feature the company name and logo. This doubles as free company advertising. It can also make them feel appreciated and can motivate other employees to improve their performance, too.

Some people enjoy giving back to their local community or other organization. Consider offering a donation on their behalf for their good work. According to the U. National Library of Medicine , dogs at the office can provide social support and stress relief. Consider letting an employee bring in their pet for a day. Provide employees with a handwritten note that shows them you took the time to appreciate their efforts. This can be a sincere card that they can keep on their desk.

Sporting event or concert tickets allow employees to have fun outside of the workplace. These tickets can be for local events that they can enjoy on their days off. Some membership examples include food delivery services, gyms, coffee clubs or book-of-the-month subscriptions. Consider taking your employees out for a free meal. This also gives your team a chance to bond and build professional relationships. This will help them grow professionally.

They can be provided with time and opportunities to take webinars, attend lunch and learning sessions, learn skills through different online learning platforms, etc. Employees can be rewarded with gift cards from their favorite clothing brands or restaurants. This reward will make them feel happy and valued by the company. At the same time, they will get the opportunity to get something they have wanted for a long time.

Different wellness programs for employees can be implemented in the company as a reward for the employees. Through the programs, they will take advantage of different things such as massages, company gyms, etc. It will help them to feel relaxed from all the stress and lead a healthier lifestyle. Employees can be rewarded with upgraded resources for their hard work. Employees highly appreciate it when they are provided with better tools and resources to work with.

It makes them feel noticed and valued. It also drives them to do a better job with better resources. There is nothing more effective than rewards and incentives to increase the morale, motivation, and productivity of the employees of any company.

It is important that employees of a workplace get recognized, appreciated, and valued for all the hard work they put in for the company.

This drives them to work harder and do better in their jobs. So, rewards and incentives for employees must be implemented by any organization or company to see growth and better results. Ans: Monetary and non-monetary incentives work the same way. The monetary incentive is all fun yet over-complementary in terms of value against productivity.

So we usually tend to lean towards the monetary incentive. Recognize increases staff productivity, provides company engagement insights, and helps retain top employees.

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All Features All Integrations. Articles Videos. Watch Video. Difference Between Rewards and Incentives Even though employers of many workplaces seem to use the terms incentives and rewards interchangeably, these two things have some differences. Here are the benefits- Employee Loyalty Employees always want to feel appreciated and valued by the leadership.

Increase in Productivity Incentives and rewards help to increase the productivity of the employees. More Accountability When team-based incentives and rewards are announced, a heightened perception of accountability can be felt around the workplace. Improvement in Collaboration When team-based incentives or rewards are introduced, a team leader tries their best to improve collaboration between the team members to finish a project properly.

Boost in Morale and Employee Motivation Reward and Incentive programs can highly boost the morale of the employees. Best Ideas for Rewards and Incentives for Employees Here are some of the things that can work as incentives or rewards for the employees of a company- Branded Items Companies often provide their top-performing employees with items such as coffee mugs, water bottles, backpacks, t-shirts, notepads, etc.

Cash There is nothing more motivating than cash rewards. Remote Workday Employees love the opportunity to work from their homes, even if it is just for a day. Catered Lunch The company can arrange a surprise lunch for the employees as a reward for their good work. Paid Time Off After finishing a significant and challenging project by staying late nights at the office, you can reward the teams that worked on the project with paid time off as an incentive for the project.

Company Feature The company can feature employees in the company feeds of different social media, and also in the company bulletin boards. Skill Growing Opportunities Companies can reward hard-working employees with the opportunity to learn from others through skill-sharing. Gift Cards Employees can be rewarded with gift cards from their favorite clothing brands or restaurants. Wellness Program Different wellness programs for employees can be implemented in the company as a reward for the employees.

Employees with pets love to show off their furry companions, and those without pets of their own get to experience the joys of interacting with animals all day long. All of that translates to a more productive team.

Want an easy incentive program that fosters good behavior? Set up a perfect attendance bonus. Instead, give them the time they need to recover without worrying that their job is on the line. Most employees would much rather be at work than suffering at home with the flu. That could result in many more absences than if you had just given the sick employee the time off they needed to recuperate. Offer a reward for each year your employees have worked for your company.

Maybe the reward is a blue shirt at the end of every year. The more years each employee has worked at your company, the darker their shirt. Then set aside a day for everyone to wear their blue shirts. This promotes a sense of comradery, provides the long-time employees with a pat on the back, and gives new employees something to shoot for.

One company offers the following benefits to the spouse of a deceased employee:. That employee incentive program may be unrealistic for small- and mid-size businesses, but perhaps the idea of it will inspire you to create a similar perk that works for you. This gives employees time to relax and visit family, prevents them from mentally checking out between the two holidays, and helps them work harder in the new year. Additionally, chances are that many of the companies you do business with will also be closed during this week.

That means less work gets done, productivity suffers, and your team members will wonder why they came in. Take the week off to avoid all the problems and stress that the holidays can bring. They could walk, bike, rollerblade, carpool, take the train, or ride the bus. If they do, they are reimbursed the cost of that transportation up to a set amount per day in their paycheck. When your employees are relaxed, they are better able to focus on the job at hand. If you want better focus and better work, bring in a masseuse once a week to give free or minute massages to all team members.

Some companies subscribe to the adage that innovation requires inspiration. To keep the creative juices flowing, include an inspiration account in your employee incentive program. Provide each team member with a set amount of money that can be used to further their personal growth.

Yoga lessons? Guitar lessons? Monday is laundry day at one Venice, California-based media company. After a long weekend of fun in the sun, all 80 employees can turn in their clothes to be washed, dried, pressed, and returned to them by the end of the day.

When you offer the option of flexible scheduling to your employees, you give them a bit of freedom within a very structured system. Ditching the , or at least being flexible about when hours are worked, helps your team members feel in control of their own schedule.