Unlock Employee Loyalty: Boost Retention with Rewards & Incentives (with examples)
In every organisation, there’s a valuable resource that contributes significantly to profits, efficiency, and customer satisfaction: the workforce.
Businesses are recognising that making their teams feel appreciated is essential. Employee rewards programs do just that - they incentivise and recognise great work. Let’s explore why these programs matter, and how you can bring them to life in your organisation.
But first - why invest in employee loyalty?
To retain top talent, businesses must offer a rewarding experience. Companies thrive when employees feel good about themselves and their work. It’s proven! When businesses reward their teams, profits can go up by 21%. Yes - you read that right!
Here are some more stats on the power of employee rewards and recognition:
- 91% of HR leaders agree that recognition and reward have a positive impact on employee retention.
- In the U.S., businesses lose $1 trillion due to employee turnover.
- 85% of companies with rewards programs reported a positive impact on employee engagement.
- Disengaged employees cost companies $450-$550 billion annually.
- Rewards programs can produce a 27% increase in employee performance.
These statistics show us how investing in employee rewards and recognition can lead to higher retention, engagement, and performance, ultimately contributing to the overall success of a business.
Employee incentive ideas - how to reward employees
Looking for ways to recognise your team? Here’s some incentive ideas to get you started…
Rewarding long-term service
Loyalty to a company shouldn’t go un-celebrated. Acknowledging long-term service is a popular reward mechanism in a loyalty program because it enhances the employer-employee relationship and inspire others to stay long-term. You could offer loyalty points on corporate anniversaries, with options for cashout or redemption for specific, personalised rewards.
Appreciation for outstanding performance
Award loyalty points to your employees who have performed particularly well at something - such as delivering a project, going the extra mile for a customer, or upholding your companies values.
Encourage professional development
Reward employees who are building skills through courses and certifications. Recognise their commitment and encourage others to do the same.
Create wellness initiatives
Incentivise your employees to take care of their physical and mental wellbeing, with gym memberships, discounts on exercise classics, or access to mental health workshops to promote a healthy work-life balance
Peer recognition programs
Integrate a system into your employee loyalty program where team members can recognise and reward their peers for outstanding contributions. This can foster a positive and collaborative work environment, helping team members bond with each other.
Milestone celebrations
Recognise that your employees play many different roles outside of work - celebrate significant milestones in their personal lives, like birthdays, weddings, parenthood, or other important events. Remember to be inclusive and celebrate those who decide not to marry or have children - there should be opportunities for everyone to get rewarded and celebrated.
Reward and recognise creativity and innovation
Incentivise employees to contribute innovative ideas or solutions to challenges faced by the company. This improves company culture and encourages others to share their ideas on how to improve and grow the business.
Encourage sustainability
If sustainable practices are important to your organisation, reward employees for actions such as reducing waste, energy conservation, or participating in environmental community projects.
How to create an employee rewards and incentives program
1. Set your goals and objectives
All loyalty programs - no matter the type or industry - must start with objectives. What do you want to achieve? More specifically, what behaviours do you want to see more of? More smiles? Better teamwork? Higher productivity levels? You decide!
2. Get the leaders on board.
You need the decisionmakers in your organisation to get onboard with employee loyalty and incentives. Make sure they understand the benefits, because they’ll be instrumental in making sure it happens.
3. Create a tailored, personalised rewards system
Don’t just follow what other people are doing. Find what works for your organisation - what kind of rewards will your employees appreciate? How do they want to earn and redeem these rewards?
4. Shout about it!
Everyone in your organisation should know about the exciting incentives coming their way. Make sure everyone understands how the program works, why it’s important, and how they can get involved.
5. Keep checking in
You need to keep reviewing your loyalty program to see how it’s going. Get honest feedback from users, and encourage them to share ideas on how to improve it.
6. Fine tune your employee loyalty strategy
Keep updating your loyalty program - adding in new incentives, rewards or features keeps things exciting and keeps employees motivated. What worked last year might not work this year - don’t be afraid to mix it up now and then.
More ideas on how to run a successful employee loyalty program
Employee loyalty programs - especially when powered by frictonless loyalty technology - are proven to be hugely impactful. Here are some extra features you can add to make sure your program stands out:
- Tiered Recognition Levels:
Allow employees to progress through loyalty tiers, with increasing benefits based on achievements.
- Customized Digital Badges:
Offer digital badges for specific accomplishments within the loyalty program. Badges can be proudly displayed on user profiles.
- VIP Recognition:
Attain VIP status with exclusive perks and acknowledgment in the employee loyalty program.
- Profit Sharing in Points:
If you can’t offer cash bonuses, you can offer your employees additional loyalty points or perks based on company profitability.
- Charitable Donation Options:
Contribute loyalty points towards donations to selected company charities.
Remember to tailor incentives to align with your employee’s preferences to enhance engagement and encourage long-term participation
Summary
As an employer, investing in and celebrating your team is a strategic move that pays off in both the short and long term. Rewards not only recognise individual achievements but also contribute to building a strong, loyal and high-performing workforce.
Ready to unlock the full potential of your team?
Choosing a loyalty technology provider is the quickest and easiest way to set up an internal employee rewards program, ensuring that your organisation thrives in an era of low retention and high competition.
You can keep things simple by choosing a loyalty API to integrate rewards into your existing structure. Or opt for a customisable microsite for employees to access personalised rewards with a few clicks. Or even go one step further, just like Wesleyan did, and launch your own branded rewards app.
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Helen Walker
Senior Content Marketing Executive
Helen is our Senior Content Marketing Executive. She shares valuable information about the Future of Loyalty and will keep you up to date on the latest industry insights...