Employee Rewards Programs

5 best practices for employee rewards programs

The end of the year is when many companies say “thank you” to valued staff with an employee reward. Are you considering an employee rewards program? Here is advice from Josh Bersin, who analyzes corporate HR, talent management, and leadership based on research conducted. This previously appeared in Forbes. Here are 5 best practices for employee rewards programs.

Recognize people based on specific results and behaviors

Don’t just give someone a reward for being “employee of the month.” Give them an award for delivering outstanding customer service when a particular problem occurs. This creates a culture of “doing the right thing.”

Implement peer-to-peer recognition – not top-down

Recognition from leaders has less impact than you may think. While HR managers believe this is a key criterion for success, employees told us that they feel much better when they are recognized by their peers. Why is this? Peers know what you’re doing on a day-to-day basis, so when they “thank you” for your efforts, the impact is much more meaningful. Top-down recognition is often viewed as political, and it rarely reaches the “quiet but critical high-performers” in the company.

Share recognition stories

One of the most powerful practices we identified was “storytelling.” When someone does something great and is recognized by their peers, tell people about it. Not only should they get an “employee of the month” parking space (kidding – these remind me of the movie “Office Space,” by the way), but you should mention them in a newsletter or company blog. These stories create employee engagement and learning.

Make recognition easy and frequent

Make it trivially simple for employees to recognize each other. Many of the modern programs we studied give all employees a budget for “points” or “dollars,” and they can give them to others online in seconds. We use one of these systems in our company, and the results have been amazing. People who do great things are now visible to everyone else!

Tie recognition to your own company values or goals

Companies like Deloitte and Intuit have recognition programs that focus on the company’s mission and goals. So when you give someone a “thank you” award, the award is tied to your own company’s strategy (customer service, innovation, teamwork, or even a revenue or cost-cutting goal).

Virtual Incentives provides solutions that help businesses connect with their most valuable employees, customers, and partners in ways never before possible. Our prepaid platform is powered by a simple, customizable virtual solution that closes the gap between action/achievement and rewards, rebates and offers. Did these best practices teach you something new about employee rewards for your company?