Did you know that around 63% of employees are more likely to stay with a company running a great Employee Rewards Program? In other words, employee recognition is a great way to retain the best staff and reduce your recruitment costs. But how do you develop a cost-effective Rewards Program? Here are five ideas to get you started.
There’s no point investing money in plaques or other physical prizes if your team won’t appreciate them. The answer? Ask your employees what drives them. Find out what they’d like to see more of.
For example, some teams might prefer cash rewards, and others might want training or mentoring opportunities. So, ask your employees for suggestions before you allocate any budget.
Next, introduce some inexpensive but frequent recognition schemes. Ideas include:
Remember, most employees respond well to frequent positive feedback, so this is a cost-effective way to recognise your top performers.
Give your managers the flexibility to offer non-financial rewards for great performance. Options include:
Don’t underestimate the value of networking opportunities — internal networking is really valuable to your employees, because many see it as a stepping stone to future promotions.
Don’t forget to allocate some budget to annual or quarterly prizes for outstanding employees. You might offer:
Great prizes like these can incentivise your employees to give their best all year.
The average company allocates around 1% of payroll to their Employee Recognition and Rewards Program, but this doesn’t work for every business. So here’s what to do.
Confirm how much money you can spend on your Rewards Program.
Allocate the budget between high-value, infrequent rewards and peer recognition and manager-to-peer recognition activities.
Review and make changes as appropriate.
Finding your budget for employee recognition comes down to one major factor: your company’s specific needs. But remember, you don’t need a huge budget to roll out a great program — frequent, non-financial rewards are a good place to start.