Explore why reward program experiences are much more significant and meaningful for your workforce than any other tangible reward.
When it comes to rewarding employees for their efforts, monetary compensation is the most common method used by businesses. However, people no longer consider financial incentives rewarding because money satisfies but does not provide an emotional connection. People are happier when they receive gifts that allow them to collect memories and moments of lasting happiness and joy.
Although material things last longer, the memories created by experiential rewards can be re-lived countless times. Incentives in the form of a vacation to an exotic location, a fun-filled family outing, or just a dinner at a fancy restaurant truly feel like a reward when given as a gift.
Here’s a look at how experiential rewards or reward program experiences can be used to motivate and engage employees while creating a more effective rewards system.
What are employee reward experiences?
Offering rewards that appeal to your employees makes them feel appreciated and secure, which increases the likelihood of creating an enterprise that everyone feels loyal to and is more enthusiastic about achieving its goals.
Non-cash or experiential rewards provide moments of joy and create lovely memories. By incorporating ways to create memorable experiences into your program, you can maintain a productive work environment and maximize employee engagement, they have become an essential part of maintaining a happy and positive company culture.
Why are reward experiences relevant today?
The main reasons for reward experiences being so popular and relevant are:
Millennials love it
Our younger generation, the future of our workforce, is motivated by experiences rather than material wealth. They would prefer a rewards program that gives them the option to choose their own experiences. An employee rewards program that provides experiential rewards can assist them in bridging the gap that this generation is facing in having to repay loans and debts and experiencing all the thrills, adventures, and surprises of life
The rising cost of living makes experiences more valuable.
As prices rise sharply, employees have to divert an increasing portion of their hard-earned salary to everyday expenses such as bills, food, car fuel etc. This leaves little room for luxuries like vacations, trips, or even a concert or movie night.
Employees would appreciate a rewards program that focuses on providing fantastic experiences for all of their hard work and dedication. Receiving experiential rewards would mean the employees can do something they enjoy without worrying about the cost.
Bring higher and more meaningful value as against its actual cost value.
HR can buy experiential rewards in bulk quantity and at a discounted price. As vouchers and gift cards can be bought and shared online, there is no need to spend on storage space and logistics.
Employees can use experiential rewards to do something they enjoy without spending money from their limited budget. The memories of the well-spent time are greater and more valuable than the cost of the reward. Furthermore, while cash awards are taxed, vouchers are exempt from taxation.
Gifting experiential rewards is a better option for both employees and employers as they bring higher and more meaningful value as compared to its actual cost.
Key experiences with noncash rewards
Once in a lifetime chance
A thoughtful experiential reward could provide an employee with a once-in-a-lifetime experience. Delightful experiences have positive physical, mental, and emotional influences on an individual. There are numerous inventive ways to reward employees and enhance their experience to make it once in a lifetime opportunity. It could be a location they wanted to visit but could not afford or an activity they didn’t get time for, made possible with experiential reward.
Access to leadership
Employees value the opportunity to meet with business leaders in a casual setting. Acknowledgement from senior members of an organization can boost a team’s morale. Plan incentive trips with the company’s leaders. It will break down the barriers between ranks. Apart from an opportunity to travel, the trips allow employees to share experiences with a business leader and listen to their highly encouraging and motivational talks.
Nurturing relations
Building relationships and connections with each other in large organizations with a global workforce can be complex. Allowing people from different departments to interact and connect strengthens the sense of community. Employees who engage with in-house teams get to know each other better. Experiential rewards can serve as team-building exercises. Days out with co-workers are more meaningful than cash awards, allowing the group to make unique memories together and forge stronger bonds.
Employees look forward to rewards that multiply their happiness and facilitate their growth as an individual, with experiential rewards they can enjoy activities that interest them without having to worry about the costs.
These reward program experiences create wonderful memories and a feeling of appreciation and gratitude towards the employer. This gratitude transcends into more productivity and loyalty to the company. A culture of experiential rewards reduces employee attrition rate and motivates others to put in their best to get rewarded.
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