So, you want to create an irresistible company culture. Your goal is happy, engaged, productive employees who want to learn and grow with your organization for the long haul.
Here’s the first thing you should do: invest in employee incentives.
Now, you might be thinking, “We already offer health insurance, bonuses, and vacation days!” But, these traditional incentives may not do much to motivate or retain talent.
To truly incentivize your employees and create an outstanding company culture, you need to develop rewards that are meaningful, personalized, and intangible—that go beyond monetary rewards and show your people you care about their progress and well-being.
Here’s how to do that and make your company a great place to work.
What are employee incentives?
Employee incentives are rewards-based programs that motivate and encourage your employees to reach their best level of performance.
There’s no one way to incentivize employees, and the best approach is usually a blended one that caters to the diverse needs and desires of your workforce: a combination of monetary and non-monetary rewards that show you value your employees and recognize their hard work in unique, suitable ways.
Despite the importance of employee incentives to workplace success, Forbes found that 80% of employees say they don’t feel recognized or rewarded at work, which indicates there’s plenty of work to be done.
As a starting point, employers should look to understand what their people really want and need from their incentive programs. Data-gathering exercises like surveys and one-on-one meetings are a great way to do this while also showing your people that you care about their thoughts and feedback.
Top reasons to incentivize your team members
If you don’t think employee incentives are important, you need to think again. As countless studies show, incentivizing team members is a common thread among top-performing companies worldwide.
Here’s a closer look at the reasons why it’s vital to craft a thoughtful employee incentive program:
Employee satisfaction
We’ve all heard the phrase “hard work reaps rewards.” But when it doesn’t—or the rewards on offer don’t resonate with your people—they’ll start to feel dissatisfied and demotivated at work.
In fact, research from Nectar shows that 87% of employees think meaningful recognition improves their sense of job satisfaction. And, when employees feel satisfied and engaged at work, they’re more likely to reach their full potential.
If you’re not yet tracking employee engagement, doing so before and as you elevate your rewards programs is a great idea to improve return on investment (ROI).
Maybe you’ve tried employee surveys but found engagement is low or inconsistent. Bitly links can help, providing you with critical link-clicking data that makes it easy to understand and improve your internal communication strategy.
Employee retention rates
Speaking of engagement, Gallup finds that 64% of engaged employees wouldn’t leave their jobs—even if the job market improves. That’s the power of a great incentive program: long-term loyalty from top talent.
If you can make your employees feel valued, they’re far more likely to develop an emotional connection to your company. That makes them much less likely to jump ship when a tempting job pops up on LinkedIn, or your company goes through a rough patch.
Performance and productivity
Incentives are the foundation of employee engagement, and Gallup finds that companies with engaged workforces are 21% more profitable than average ones. See, incentives are about far more than giving your employees a pat on the back for good work. They’re critical to driving performance.
After all, employees want to feel a sense of progress in the work they do. This is about more than just giving them an annual bonus; it’s recognizing their small wins through regular rewards. As Harvard Business School research shows, employees perform much better when they’re in a culture that notices and recognizes their contributions and growth.
Company culture
You may have heard the saying, “Culture eats strategy for breakfast.” And, yet, Gallup finds that just two in 10 employees feel connected to their workplace culture.
Culture isn’t something that just happens; you need to intentionally design and craft an environment where your employees want to work, and where your corporate values and company goals shine through.
While building a thriving culture takes time, incentives are the rocket fuel to get you started. A thoughtful rewards program that aligns with your company’s purpose and mission will inspire your employees, boost belonging, and elevate output.
12 ideas for employee incentive programs to reward employees for hard work
Ready to level up your employee incentives program? Here are 12 ideas to inspire you.
(Note: The brands and companies discussed below were found during our online research for this article.)
1. Public recognition and awards
A low-cost, high-reward way to incentivize employees is through public recognition. Whether you implement an “employee of the month” shoutout or incorporate kudos into your weekly newsletter, putting the spotlight on people for great work is a fantastic way to boost engagement.
Remember, too, not to get caught up in a narrow definition of what “great work” is. Sure, people who exceed sales targets deserve recognition, but so do employees who push themselves outside of their comfort zones, excel at teamwork, or reach specific goals.
By expanding your definition of what deserves recognition, you’re sure to make your employees feel happier and more engaged. Of course, it’s important that your employees actually read your newsletters and blog posts.
2. Skill or learning opportunities
According to Deloitte, companies with strong learning cultures have retention rates 30-50% higher than average. While learning and development isn’t a traditional incentive, it’s certainly a powerful one in today’s day and age.
With the world of work becoming more connected and digital, more people than ever are keen to expand their skills by continuing to grow and learn.
You could, for example, set aside an amount of money per individual per year, which they can use for professional development opportunities like workshops or online courses of their choosing. Another option is to offer tuition reimbursement programs for further study, or even share skills among team members.
At Bitly, for example, we have monthly “Munch & Learns.” The series, Being Bitly: Inclusion Stories, features team members from across the organization and aims to connect our Bitizens through conversations focusing on inclusion topics.
3. Financial rewards and bonuses
While monetary incentives aren’t the be-all, end-all of employee incentives, these tangible rewards still matter. Performance-based and profit-sharing bonuses are the two most common types of structures, and both have their merits and downsides.
With performance-based bonuses, you run the risk of subjectivity creeping into the picture. An employee might think they’ve hit all their targets, for example, while a manager disagrees.
Similarly, with profit-sharing plans, employees may feel frustrated if they don’t get the financial reward they hoped for at the end of the year.
Really, no one way is better than others, and your internal company structure will guide your bonus scheme. No matter what bonus scheme you go for, remember that financial rewards also extend to perks like additional paid time off or flexible working—both of which can greatly boost employee morale.
4. Personalized rewards
Speaking of flexible working, isn’t it funny that some people love working in the office and others don’t? That’s the thing about rewards: They need to be tailored to individual employees.
This is all about building empathy with your workforce at a granular level: What are their likes and dislikes? What does praise mean to them? What are they looking to get out of work?
Once you know this, you can then provide personalized rewards that resonate—be it a gift card for their favorite store, tickets to a sporting event, or additional paid time off.
To figure out who should receive these rewards and when, consider implementing a peer-to-peer program, where your people are encouraged to nominate their colleagues for rewards based on their contributions.
5. Gamification and healthy competition
Gamification is a fun, upbeat way to motivate and incentivize your employees in tandem. Through digitized mechanisms like milestones, badges, and leaderboards, you can encourage friendly competition and encourage your employees to perform better.
Applications like Microsoft Teams and Slack both feature third-party integrations you can roll out to seamlessly bring gamification to your employees’ existing workflows.
6. Wellness programs
Healthier employees are happier employees. They also save employers a lot of money. Collectively, full-time workers who call in sick cost the economy $47.6 billion annually in lost productivity, according to Gallup.
Luckily, you can help employees stay happy and healthy through wellness-focused rewards like gym memberships, on-site fitness classes, or even healthy meals in the workplace cafeteria.
Cisco even offers employees concierge health care, including acupuncture and physical therapy, in its LifeConnections Health Center.
But there are other more accessible ways to let employees know you care about their health and wellness in recognition programs.
7. Community service opportunities
According to America’s Charities, 71% of employees say it’s imperative to work for a company that’s supportive of giving and volunteering. When employees are able to give back or help others through their work, they develop a deeper sense of purpose and meaning.
So, why not incorporate volunteering into your employee incentives program? You could, for example, give employees an allotted number of days each year to volunteer for causes they care about while still being paid.
At the leadership level, you can also demonstrate to your people that you’re a company with heart by partnering with local charities that resonate with your values and mission.
At Bitly, we participate in GivingTuesday—a worldwide generosity movement during which Bitly team members can make donations (monetary or volunteering time) to their charity of choice and Bitly will provide a company match.
Similarly, Microsoft matches every hour of an employee’s volunteer work with a $25 donation to their nonprofit. The company is also playing a huge role in reducing the digital divide through charitable initiatives in the Asia Pacific region.
8. Employee discounts
Do your people love your product or service? Or maybe they’ve never even tried it? If it’s the latter, you’ll want to think about the employee discounts you offer to your people.
For example, if you’re a hotel company, you could offer your people 25% off stays, or last-minute deals at very cheap rates when you’re at low capacity. Similarly, organizations in the food and beverage industry could offer 25% discounts for employees plus their friends and families.
If you’re an agency, or your service doesn’t apply to your workforce, it’s time to get creative. Consider reaching out to local businesses, partners, or your client base to discuss potential collaborations that could be rewarding to employees on both sides.
9. Flexible work arrangements
Whether your employees live far away from work, have a side hustle, or have a growing family, flexible working is one of the best incentives you can offer to reduce employee stress and boost loyalty.
According to recent research, one in three parents say it’s difficult to find child care, and nearly one-third of all parents report that child care has caused financial hardship for their household.
Some companies, like Unilever, go as far as providing onsite childcare to help busy parents, but you could also look at offering remote-first working arrangements or a stipend to use toward a local daycare or after-school program.
10. Relaxed social events
High-performing teams are built on empathy, understanding, and mutual care. To build that kind of team, you need to get your people to bond—but bonding in the office or while working from home is limited by work priorities.
That’s why team outings are so important as an incentive. Fun days out like company picnics, games nights, or even a sports day will foster a sense of connection among your team members—not to mention, they’re a lot of fun!
11. Employee stock ownership plans (ESOPs)
A less commonly used but powerful employee benefit is the ESOP, where you give your people shares in your company at a fair market price. ESOPs can work wonderfully for employee motivation because they make people more invested in your success—your success becomes theirs!
While ESOPs can be great, they aren’t for everyone. Setting this plan up involves strong regulatory and legal knowledge to get it right—not to mention it’s expensive, costing at least $125,000 to set up typically, alongside annual admin fees of up to $50,000.
12. Exclusive experiences
Last but not least, another great way to incentivize employees is through offering unique, enticing experiences for hard work.
The kinds of experiences you offer are up to you. You could provide early access to your latest products, tickets to a sold-out concert, or the chance for an employee to share their ideas with your company execs. The goal is to excite and invigorate your employees into doing the best they can at work.
Incorporate these employee incentive ideas to celebrate great work
Ultimately, employee incentives are a powerful mechanism for elevated engagement, productivity, and bottom-line performance.
Don’t just roll out incentives for the sake of it. Really think about what will resonate with your people at the individual level and craft an incentive plan that truly energizes and rouses your employees.
Ready to go? Use Bitly to track your rewards program’s performance and make employee engagement stronger than ever! Get started for free today.