Types of Employee Rewards – A Quick Guide for HR pros

Team Advantage Club
January 11, 2023

An easy guide for HRs on the different types of employee rewards and how to make recognition more effective that’ll ultimately drive engagement. The employee Rewards system is an efficient tool to recognize, appreciate and motivate employees with incentives and rewards.

An organization that consistently recognizes its employees’ contributions has a highly engaged workforce. When employees feel valued and encouraged at work, they are more likely to put in their best efforts and develop great relationships with their colleagues. As a matter of fact, rewarding and recognizing employees in line with their values and needs would be the best course of action. Encouragement could be in the form of cash benefits, gift cards, travel incentives, thank-you messages, etc. Effective Employee Rewards Systems are available to appreciate employees for reaching goals, doing a great job, or for good work ethics.

Types of Employee Rewards

There are many approaches to incentivize your employees. For instance, going along with their needs will ensure you have an effective reward system. Here is a list of employee reward ideas. These are some distinct ways to show you care for employees, recognize their talent, and applaud them.

Financial benefits

Monetary benefits or cash rewards can be given to employees for their valuable contribution to the organization. These benefits may be extended based on performance or on achieving targets. Cash incentives are good for instant gratification. Some options to give out financial benefits are:

Non-financial benefits

Non-monetary incentives appreciate employees with long-term benefits. HR can dish out allowances employees are enthusiastic about, such as gym membership, flexible working hours, health insurance, etc. Some non-monetary benefits may include:

Recommended Read: Why Intrinsic Rewards Are Important?

Support incentives

With physical and mental health gaining importance, companies can support employees by providing discounted or complimentary services that benefit their overall well-being. Benefits available under support incentives can include:

Recognition as Employee reward

Appreciating work-related victories in meetings and company communication channels can motivate team members to do their best at work. Likewise, peer-to-peer respect and admiration are inspiring. It boosts confidence and establishes an engaging and productive workplace. Some useful recognition programs are:

Also Read: Creating An Employee Rewards And Recognition Program

Having an employee rewards system is the first step to acknowledging employees’ hard work and dedication. And certainly, managing the reward system consistently and over time for positive ROI is essential. Basically, consistency and commitment are the keys to developing an effective strategy for the reward system. An efficient employee recognition program can help you discover practical, cost-effective, and fruitful employee recognition incentives and awards for your employees.

Team Advantage Club

We are a team of content and feature writers with an expertise in the subject of employee engagement and Rewards & Recognition strategy within corporate. Our team comprises of creative writers and subject matter experts who love de-constructing various facets of employee engagement and recognition.