Beyond Bonuses: Innovative Employee Rewards Systems

By Cam Velasco

CEO & Co-Founder
Published: Mar 14, 2024
In today’s competitive job market, companies are rethinking how they reward employees. Moving beyond traditional bonuses, innovative rewards systems are tailored to individual preferences and holistic well-being, aiming to boost engagement, satisfaction, and loyalty. In this article we'll explore some of them.
A joyful employee looking up and laughing, appreciating an unseen colleague's gesture, possibly discussing a reward.

In today’s competitive job market, companies are rethinking how they reward employees. Moving beyond traditional bonuses, innovative rewards systems are tailored to individual preferences and holistic well-being, aiming to boost engagement, satisfaction, and loyalty. Here’s a quick overview of what modern employee rewards systems look like:

  • Personal Development Opportunities: Training, conferences, and skill-building to promote career growth.
  • Work-Life Balance Enhancements: Flexible schedules, remote work options, and ample time off.
  • Health and Wellness Initiatives: Gym memberships, healthy snacks, and stress management resources.
  • Experiential Rewards: Unique experiences like trips, events, or fine dining.
  • Peer Recognition Platforms: Systems for coworkers to acknowledge each other’s achievements.
  • Community and Social Impact: Opportunities for employees to engage in charitable activities.
  • Exclusive Events and Memberships: Access to special events or clubs.

These diverse approaches aim to fulfill different aspects of employees’ lives, extending beyond the workplace to support personal interests, well-being, and growth. Companies that successfully integrate these innovative rewards systems can expect to see higher levels of employee retention, satisfaction, and productivity.

From Extrinsic to Intrinsic Motivation

Before, rewards were mostly about money, meant to push employees to meet short-term goals. But studies have shown that this kind of motivation doesn’t last long. Also, just giving everyone the same bonus can make your best workers feel unnoticed.

So, smart companies are now looking at what really motivates people from the inside – like wanting to do a good job, feeling independent, and being part of a team. They’re trying to make rewards that really mean something to each person, connecting their hard work to the bigger picture of the company.

Holistic Benefits Tailored to Wellbeing

Nowadays, workers care more about having a good balance between work and life, feeling fulfilled, and staying healthy than just getting a big paycheck. That’s why many top companies offer things like:

  • The choice to work from home or in the office
  • Plenty of time off
  • Access to apps for staying fit and calm
  • Money for learning new things
  • Different kinds of benefits you can choose

These kinds of rewards show employees that the company cares about them as whole people, not just as workers.

Peer Recognition Platforms

A new thing companies are doing is letting employees give each other small rewards and shoutouts. This helps everyone feel appreciated and builds a team spirit. Being recognized by your coworkers can be very motivating and makes people feel valued.

The Path Forward

As what employees want keeps changing, companies need to keep up by thinking differently about rewards. It’s not just about money anymore. It’s about supporting what’s important to workers, like feeling connected, growing, and having a good balance between work and life. Companies that get this right will be the ones that keep their best people.

Why Traditional Employee Rewards and Bonuses Are Not Enough

Traditional bonuses, where companies give extra money to employees, aren’t doing the trick anymore when it comes to keeping employees happy and engaged for the long run. Here’s why sticking to just bonuses might not be the best idea:

They Encourage Short-Term Thinking

Bonuses make employees focus on hitting goals that get them that extra cash at the end of the year. This can lead to aiming for quick wins rather than thinking about what’s best for the company in the long run. Once the goals for the bonus are met, employees might not feel motivated to keep up their performance throughout the year.

They Don’t Properly Reward the Best Employees
If everyone gets the same bonus, it doesn’t really show appreciation for the employees who go above and beyond. The hardest working people might feel like their extra effort isn’t being noticed and might think about finding a place that values their contribution more.

They’re Not Personal Bonuses are a one-size-fits-all reward. They don’t consider what different employees might value more, like extra time off or opportunities to learn new things. What motivates one person might not matter as much to someone else.

They Miss the Mark on What Really Motivates People Studies have found that what really gets people going is the feeling that they’re doing something meaningful, they have control over their work, or they’re getting better at what they do. Bonuses can give a quick boost, but they don’t really tap into these deeper motivations.

In the end, companies are learning that to really keep employees engaged and loyal, they need to think beyond just money. They’re putting together reward programs that mix traditional bonuses with rewards that are more personalized and tap into what employees are truly passionate about.

Innovative Employee Rewards Systems: A Closer Look

1. Personal Development Opportunities
Employee Engagement

Giving employees chances to learn and grow at work makes them care more about their jobs. When a company helps its team members gain new skills or improve, those employees often feel more connected and eager to contribute to the company’s goals.

Personalization

Letting employees pick from different learning and growth options means they can find something that really speaks to them. Whether it’s taking a class online, getting leadership training, or attending a conference, having the choice makes the reward feel special and just for them.

Sustainability

When a company invests in teaching its employees new skills, it builds a team that’s ready for the future. Employees who feel their company supports their career goals are more likely to stay long-term.

Impact on Employee Well-being

Employees who get to learn and grow often feel happier at work, less stressed, and find a better balance between work and life. Learning boosts confidence and brings a sense of excitement to their day-to-day tasks.

Alignment with Company Culture

Offering growth opportunities that match what the company stands for makes these rewards more meaningful. For instance, a company that values creativity might offer classes on new ways to think and solve problems. A company that cares a lot about teamwork might help employees learn how to understand and work better with others.

2. Work-Life Balance Enhancements
Employee Engagement

When companies help employees balance their work with their personal lives, employees feel like the company really cares about them. This makes them more excited about their work. Things like choosing your own hours, having plenty of days off, and the option to work from home let employees manage their own time. This freedom makes them more committed to their jobs.

Personalization

Offering choices in how to balance work and personal life makes these rewards feel special. Whether it’s flexible hours, working from home some days, or taking longer breaks, people can pick what suits their life best.

Sustainability

Helping employees balance work and life means they’re less likely to get stressed or burned out. This means they’re happier to stay with the company longer. Companies that understand the importance of balancing work and life keep their employees around.

Impact on Employee Well-being

A good balance between work and personal life keeps employees healthy and happy. Being in control of their time lowers stress and lets them focus on personal interests. This makes them feel more positive and ready to do their best at work.

Alignment with Company Culture

If a company really puts people first, then supporting a good work-life balance fits right in. This shows in a company’s culture when they make it easy for employees to use these benefits. It helps everyone feel okay about taking time for themselves, knowing it’s part of the company’s values. This way, employees can enjoy their life outside of work too.

3. Health and Wellness Initiatives
Employee Engagement

When companies offer health and wellness perks, they’re telling their employees they care about their health. Things like gym memberships, healthy snacks, comfy chairs, and help with managing stress make employees feel valued. This makes them more loyal and committed to their work.

Personalization

Letting employees choose from different health and wellness options, like exercise equipment, eating plans, apps for staying calm, or even massages, means they can pick what they need most. This choice makes the reward feel more personal.

Sustainability

Encouraging employees to look after their health means they’re less likely to burn out, call in sick less, and have more energy. A healthy team is more likely to stay with the company and keep doing great work. So, investing in health is a smart move.

Impact on Employee Well-being

It’s obvious that health and wellness benefits make employees healthier and happier. With less stress and more ways to take care of themselves, employees are in a better position to do well at work and enjoy life.

Alignment with Company Culture

Companies that focus on the overall health of their employees usually have a culture that supports being healthy and balancing work with life. Wellness perks fit right in with this kind of supportive atmosphere. The message is clear: taking care of yourself is important for doing a good job.

4. Experiential Rewards
Employee Engagement

Giving employees things like trips, special events, or gift cards makes them feel appreciated. It’s more exciting and memorable for them than just getting extra cash. This makes them more interested in their work.

Personalization

Offering employees the chance to choose a unique experience as a reward feels more personal than the same cash bonus everyone else gets. Whether it’s a nice meal out, tickets to a concert, or a trip somewhere exciting, it shows the company cares about giving them something special.

Sustainability

Giving memorable experiences as rewards helps employees feel good about where they work. These positive memories make them want to stay with the company longer.

Impact on Employee Well-being

Trying new and fun activities can be great for employees’ well-being. It helps break the routine, reduces stress, and lets them bond with coworkers.

Alignment with Company Culture

If a company’s culture is all about experiences, adventure, or trying new things, these kinds of rewards fit perfectly. They show what the company values and help employees feel like they’re part of something they believe in.

5. Recognition and Public Acknowledgment
Employee Engagement

When people get a shoutout for their hard work in front of everyone, it makes them feel good and more connected to their job. They’re likely to keep putting in the effort when they know others appreciate what they do.

Personalization

Saying thank you to someone by name for something specific they did is way more impactful than just a general ‘good job’. It shows you’re really paying attention to what they’re doing.

Sustainability

Regularly saying ‘well done’ keeps people feeling valued over time. This means they’re more likely to keep up their hard work.

Impact on Employee Well-being

Being recognized makes people feel important and like they’re making a difference. This leads to them being happier and more satisfied with their job.

Alignment with Company Culture

Having a way to publicly praise people supports a company culture that’s all about working together, coming up with new ideas, and putting the customer first. It encourages everyone to keep up the good work.

6. Community and Social Impact
Employee Engagement

Helping out in the community and supporting important causes can really get employees excited about their work. When they team up to do something good, it makes them care more about their company.

Personalization

Employees get to choose what causes they want to support. This could be anything from helping kids in need, cleaning up local parks, or fundraising for health research. When they lead these efforts, they feel like they’re making a real difference.

Sustainability

Working on community projects gives employees a deeper sense of satisfaction than just personal rewards. They’re motivated by the chance to make a lasting impact, which makes them want to stick around longer.

Impact on Employee Well-being

Spending time and effort to help others makes employees feel good about themselves. Knowing they’re doing something meaningful increases their happiness and energy levels.

Alignment with Company Culture

Supporting community projects is a great fit for companies that value teamwork, want to innovate for a better world, or focus on sustainability. It shows the company’s values in action.

7. Access to Exclusive Events and Memberships
Employee Engagement

Giving employees special access to events and memberships makes them feel important and part of the team. When they can go to things that most people can’t, like big sports games or movie premieres, it boosts their excitement about where they work.

Personalization

Offering choices in what events or memberships they can access means employees get something that feels just for them. It could be anything from a ticket to a big sports match, a movie premiere night, or joining a fancy club. They really like getting to experience things that are usually out of reach.

Sustainability

Having access to unique experiences creates good memories linked to their job. These memories make employees want to stay with the company longer because they look forward to more special opportunities.

Impact on Employee Well-being

Getting to enjoy these exclusive events or memberships makes employees feel recognized and boosts their confidence. It also gives them a break from work stress and something exciting to look forward to.

Alignment with Company Culture

For companies that aim to be leaders or innovators in their field, offering access to exclusive events and memberships matches their goals. It helps employees feel like they’re part of an elite group, which motivates them to bring their best to work.

Implementing Your Innovative Employee Rewards System

Creating a new rewards system that really works involves a few important steps. Here’s what to do:

1. Set Clear Goals

Start by figuring out what you hope to achieve. For example, you might want to:

  • Keep more of your employees around by increasing how many stay by 15%
  • Make employees happier, aiming to raise their happiness scores by 30 points
  • Get more employees to take part in saying ‘good job’ to each other, aiming to double the number

Having goals that you can measure makes it easier to see if your new system is working.

2. Survey Employees on Motivations

Ask your team to share their thoughts on:

  • The types of rewards they really like
  • The kind of praise they prefer
  • How they want to balance work and personal life
  • New skills they’re interested in learning

This way, you make sure your new rewards system is something they’ll actually be excited about.

3. Brainstorm Fresh Ideas

With your goals and what your team has told you in mind, think up new and interesting rewards like:

  • Personal growth opportunities: money for training, going to conferences, challenges to learn new skills
  • Work-life balance support: choosing when to work, extra days off, options to work from home
  • Wellness perks: memberships for the gym, healthy snacks, comfy chairs
  • Social impact programs: days off to volunteer, drives to raise money
  • Peer recognition: a board to give shoutouts, small presents for doing a good job

Add these new rewards to what you already offer in terms of pay and benefits.

4. Design Program Framework

Plan out how your new program will work. Make sure to cover:

  • Different types of rewards
  • Choices available in each type
  • How employees can earn and use rewards
  • How much you can spend on each employee

Having a clear plan helps make starting your new system smoother.

5. Launch and Iterate

Begin with an event to tell your employees all about the new rewards. Then, every few months, check in to see what they like and what could be better.

Be ready to change the program as you learn what works best. Treating it as something that can always improve is key. The most successful companies keep adapting their rewards to keep their employees happy and engaged.

Challenges When Implementing a Different Employee Rewards System

When you start giving out cool new rewards, there are a few bumps in the road to watch out for. Here’s what you need to think about:

Ensuring Inclusivity

It’s key that everyone feels they can join in. To make sure of this, companies should:

  • Give lots of choices so there’s something for everyone
  • Talk clearly about how the rewards work
  • Ask a mix of employees for their ideas when planning
  • Check if everyone is getting a chance to earn rewards and tweak things if not
Managing Costs

Fun rewards like trips or special classes can add up in price. To keep costs down, you can:

  • Set a budget for each reward type
  • Start small and add more as you can afford it
  • Look for deals from companies that offer rewards programs
  • Let employees swap benefits they don’t use for reward points
Preventing Unfairness

You don’t want anyone feeling left out because they didn’t get a reward. To avoid this:

  • Connect the bigger rewards to specific achievements
  • Make sure everyone knows how to earn each reward
  • Train managers on how to give out rewards fairly
Maintaining Productivity

There’s a worry that if people work when and where they want, work might not get done. But, giving people control actually helps them do better. Still, it’s good to:

  • Keep an eye on work to make sure things are getting done
  • Have some rules about how often rewards can be used
Aligning with Company Values

Rewards should fit with what your company believes in. For instance, if your company is all about being green, your rewards should reflect that. Here’s how:

  • Think about whether rewards support your company’s main goals
  • Ask employees for reward ideas that match what your company stands for
  • Make rules that encourage the kind of company culture you want

With a bit of planning and listening to your team, you can smooth out these issues and create a rewards system that really works. Being open to change is key.

Conclusion

As the job world changes, companies need to change how they reward their employees to keep them happy and stick around. Just giving extra money at the end of the year isn’t enough anymore.

Instead, smart companies are trying new things like:

  • Personal growth opportunities by offering training, going to conferences, and learning new skills. This makes work more meaningful and fun for employees.
  • Work-life balance enhancements by letting employees choose their schedules, work from home, and take more time off. This helps employees feel in control and more dedicated.
  • Health and wellness perks such as memberships to gyms, healthy food options, comfy office gear, and ways to relax. Taking care of employees’ health makes them happier and do better at work.
  • Experiential rewards like special events, trips, nice dinners, and fun activities that give employees cool stories to tell. These unique rewards make employees feel appreciated.
  • Peer recognition platforms where coworkers can say thanks and give small gifts. Feeling valued by the people you work with every day is really important.
  • Social responsibility programs that let employees help out with causes they care about. Working together on something good builds team spirit and makes everyone feel like they’re making a difference.

As companies compete for the best employees, the ones that do a great job of making their team feel valued, beyond just their job, will win. The best companies will be those that match their rewards with what they stand for and what their employees care about.

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Cam Velasco

CEO & Co-Founder

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