Make A Reward System for Employees In-House: 5 Reasons Why + Guide
by Daniela Maria Zabrautanu
May 17, 2023
As a human resources professional, you understand the importance of employee incentives. The right reward system can motivate your employees, increase productivity, and ultimately lead to a more successful organization. While outsourcing your reward system may seem like a convenient option, there are numerous benefits to creating an in-house system for your staff. In this article, we’ll explore five reasons why you should consider an in-house reward system for employees and provide a guide to help you get started. So grab a cup of coffee, sit back, and let’s dive in!
Related: Employee incentives to reward, and recognize your team.
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What is a reward system for employees?
A reward system for employees is a program that incentivizes and recognizes the hard work and achievements of your staff. It can be as simple as a monthly employee of the month award, or as complex as a points-based system where employees accumulate points for their actions and accomplishments, which can be redeemed for prizes or benefits.
One recent employee recognition survey by the Achievers found that respondents mentioned interesting work (74%) and recognition and rewards (69%) as the top factors that keep them at their current employers.
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Now that we understand what a reward system is, let’s dive into the reasons why an in-house system may be the best option for your organization.
Reason #1: Customization
When you create an in-house reward system, you have complete control over the design and customization of the program. You can tailor the rewards and incentives to fit the specific needs and goals of your organization and make adjustments as necessary to keep the program fresh and engaging.
Reason #2: Cost Effectiveness
Outsourcing your reward system for employees can be expensive, especially if you have a large workforce. By creating an in-house program, you can save money on outsourcing fees and invest those savings into more meaningful rewards for your employees.
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Reason #3: Increased Flexibility
When you have an in-house reward system, you have the ability to adapt and change the program as needed. You can quickly respond to changes in your organization or workforce, and make adjustments to the program to ensure it continues to be effective.
Reason #4: Improved Employee Engagement
An in-house reward system can help increase employee engagement and motivation by creating a sense of community and competition among your employees. When employees see their colleagues being recognized and rewarded for their hard work, they are encouraged to put in more effort and contribute to the success of the organization.
Related: Take a look at our guide to retaining top talent in your organization.
Reason #5: Better Understanding of Employee Needs
Creating an in-house reward system allows you to better understand the individual needs and preferences of your employees. By gathering feedback and insights from your workforce, you can design a program that resonates with them and encourages participation.
Our guide to making your customized in-house reward system
Now that we’ve covered the reasons why an in-house reward system can be beneficial, let’s take a look at how to get started. Here are a few steps you can follow to create a successful reward system:
- Step 1: Identify Your Objectives
Before you start designing your reward system, it’s important to identify your objectives and goals. What do you want to achieve with the program? Are you looking to improve employee morale, increase productivity, or retain top talent? Defining your objectives will help you design a program that aligns with your organization’s goals.
- Step 2: Determine Your Budget
Once you have identified your objectives, you need to determine your budget. How much money can you allocate toward rewards and incentives? This will help you decide what type of rewards you can offer and how often.
- Step 3: Design Your Program
Now it’s time to design your reward system for employees. Consider the types of rewards you want to offer, the criteria for earning them, and how frequently they will be available. You may also want to consider creating a points-based system where employees can accumulate points for specific achievements.
- Step 4: Gather Feedback
Once your reward system is in place, it’s important to gather feedback from your employees. This will help you understand what’s working and what needs improvement, while you involve your staff. You can use surveys, focus groups, or one-on-one conversations to gather feedback.
- Step 5: Continuously Improve Your Program
Based on the feedback you receive, make adjustments to your program as needed. This will help ensure that your reward system stays relevant and effective over time.
Related: Do you know the difference between rewards and recognition? Find out the 5 big differences in our newest infographic.
Benefits of using a reward system for employees
As a Human Resources professional, you are responsible for managing and engaging employees to ensure the success of your organization. One way to do this is by implementing an in-house reward system.
An in-house reward system can be a powerful tool for improving employee morale, motivation, and retention. By offering rewards and incentives for specific behaviors or achievements, you can create a culture of recognition and appreciation that drives employee engagement and productivity.
Let’s take a closer look at some of the benefits of using an in-house reward system:
- Improves Employee Morale: When employees feel recognized and appreciated for their hard work, they are more likely to be satisfied and engaged in their jobs. A reward system can boost morale and create a positive work environment where employees feel valued and supported.
- Increases Productivity: By incentivizing specific behaviors or achievements, a reward system can motivate employees to work harder and produce better results. This can lead to increased productivity and improved business outcomes.
- Retains Top Talent: When employees feel appreciated and valued, they are more likely to stay with your organization. A reward system can help you retain top talent by showing them that their contributions are recognized and valued.
- Encourages Desired Behaviors: By setting clear criteria for rewards and incentives, you can encourage employees to exhibit specific behaviors or achieve certain goals that align with your organizational objectives.
Overall, an in-house reward system can be a powerful tool for improving employee engagement, motivation, and retention. By following the steps outlined
Related: Design A Better Annual Incentive Plan for Lasting Results
Types of reward systems for employees
When it comes to implementing an in-house reward system, there are various forms to consider. Here are five common reward systems that you can use to engage and motivate your employees:
- Monetary Rewards: Cash bonuses, gift cards, and other financial incentives are popular reward options. These rewards can be tied to specific performance goals or given as a thank-you for outstanding work.
- Recognition Programs: Recognition programs can be a great way to acknowledge and celebrate an employee’s achievements. This can include public recognition, certificates, or plaques.
- Time Off: Offering extra time off can be an excellent reward for employees who have gone above and beyond their duties. This can include additional paid vacation days, a longer lunch break, or flexible scheduling.
- Development Opportunities: Providing employees with opportunities for professional growth and development can be a significant motivator. This can include attending conferences, training sessions, or paying for certifications.
- Unique Perks: Fun and unique perks can help create a positive work environment and boost employee morale. This can include free snacks, company outings, or team-building events.
When deciding which type of reward system to use, it’s essential to consider your organization’s culture, values, and budget. You want to create a rewards program that’s inclusive, fair, and aligns with your mission and goals.
In addition, it’s crucial to communicate the reward system effectively to your employees. Ensure that the criteria for rewards are clear and transparent and that employees understand how they will be rewarded.
Related: Gift cards for employees loved by our customers
Examples of successful reward systems
As a Human Resources professional, you likely understand the importance of keeping your employees engaged and motivated. Implementing an in-house reward system can be an effective way to achieve this goal. Here are some examples of successful in-house reward systems that you can draw inspiration from:
1. Employee of the Month
This reward system is a classic for a reason. Each month, one employee is chosen as the “Employee of the Month” for their exceptional performance and contributions to the company. This can be recognized with a certificate, a small gift, or even a parking spot close to the entrance. By highlighting and celebrating employees’ achievements, you can improve their motivation and job satisfaction.
Related: Discover the best employee anniversary gifts for your team
2. Peer Recognition Programs
Peer recognition programs allow employees to nominate their colleagues for outstanding work or contributions to the company. The nominated employee can then be recognized with a certificate, a small gift, or even a monetary reward. This can create an inspiring and positive workplace culture where employees feel involved and appreciated by their peers.
3. Wellness Programs
Wellness programs can be an effective way to improve employee health, reduce absenteeism, and increase productivity. By incentivizing employees to participate in wellness activities, such as exercise challenges or healthy eating programs, you can improve their overall well-being and create a more positive work environment.
4. Professional Development Opportunities
Employees are often motivated by opportunities to learn and grow professionally. By offering training programs, mentorships, or even paid time off to attend conferences, you can show your employees that you value their development.
Conclusion
In conclusion, implementing an in-house reward system can be an effective way to improve employee engagement, motivation, and retention. By tailoring the program to meet the unique needs of your organization, you can create a cost-effective program that rewards and recognizes your employees for their hard work and dedication. Take inspiration from successful reward systems such as Employee of the Month, Peer Recognition Programs, Wellness Programs, and Professional Development Opportunities. Don’t forget to send out those rewards and incentives to keep your team motivated and happy. With the right approach, your reward system can help build a positive workplace culture that fosters growth, productivity, and job satisfaction.
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You might be wondering…
When it comes to structuring a reward system for your employees, there are a few key steps to keep in mind. First, you need to understand what motivates your employees and what types of rewards would be most meaningful to them. This could include things like bonuses, promotions, extra time off, or public recognition.
Once you have a sense of what types of rewards would be most effective, you need to tie them to clear goals and metrics. This will help ensure that rewards are earned fairly and that employees understand what they need to do to earn them.
In addition to tangible rewards like bonuses and gift cards, it’s also important to offer intangible rewards like recognition and praise. These can be just as powerful motivators as tangible rewards, and they can help create a positive work environment where employees feel valued and appreciated.
Consistency is also key when it comes to reward strategies. Make sure rewards are given out fairly and consistently to avoid any confusion or resentment among employees.
Finally, it’s important to have a system in place for employees to give feedback on the reward system. This can help you identify any areas that may need improvement and ensure that the rewards are having the desired effect.
When it comes to creating a successful reward strategy, it’s important to consider what motivates your employees and what your company goals are. Here are some tips for creating a good reward strategy:
1. Understand your employees: Take the time to understand what motivates your employees. Some may be motivated by money, while others may be more motivated by recognition or career advancement opportunities. Knowing what motivates your employees will help you choose the right type of reward.
2. Set clear goals and metrics: Make sure your rewards are tied to clear goals and metrics. This will help ensure that rewards are earned fairly and that employees understand what they need to do to earn them.
3. Offer a mix of tangible and intangible rewards: A good reward strategy should offer a mix of tangible and intangible rewards. Tangible rewards like bonuses and gift cards can be great motivators, but so can intangible rewards like recognition and praise.
4. Make rewards meaningful: Rewards should be meaningful and proportionate to the level of performance. Employees will be more motivated if they feel like their hard work is being recognized and rewarded appropriately.
5. Be consistent: Consistency is key when it comes to reward strategies. Make sure rewards are given out fairly and consistently to avoid any confusion or resentment among employees.
As a human resources professional, you know that one of the most important aspects of keeping your employees happy and motivated is through rewards. But with so many different types of rewards available, it can be difficult to know where to start. In this post, we’ll explore the four main types of rewards and how they can be used to motivate and engage employees.
1. Tangible Rewards: Tangible rewards are physical items that employees receive as a result of their performance.
2. Intangible Rewards: Intangible rewards are non-physical rewards that employees receive as a result of their performance.
3. Performance-Based Rewards: Performance-based rewards are rewards that are tied directly to an employee’s performance.
4. Recognition-Based Rewards: Recognition-based rewards are a type of intangible reward that focuses on acknowledging and celebrating an employee’s achievements.
As a human resources professional, you know how important it is to keep your employees motivated and engaged in their work. A well-designed reward program can help you achieve this goal by providing incentives for your employees to perform at their best. However, it can be challenging to create a reward program that is both effective and fair. Here are some ideas for a good reward program for employees:
1. Performance-Based Incentives
2. Recognition Programs
3. Wellness Programs
4. Professional Development Opportunities
Designing a reward program for employees is a great way to motivate them and foster a positive work culture within your organization. However, it can be overwhelming to come up with an effective and fair program that resonates with your employees. Here are some tips on how to start designing a reward program for employees that will help you create a happy and productive workforce.
1. Understand Your Employees’ Needs
2. Set Clear Goals
3. Choose the Right Rewards
4. Establish Criteria for Receiving Rewards
5. Celebrate Achievements Publicly
By following these steps, you can create a reward program that is fair, effective, and motivational. Don’t forget to regularly review and adjust the program to ensure that it stays relevant and engaging for your employees. With a well-designed in-house reward system, you can boost employee engagement, retention, and morale, and create a positive workplace culture that benefits everyone. Contact us today to get started on your own reward program!