No one can deny that motivating and engaging employees is difficult, especially in times of tight budgets and stretched teams. But the good news is it doesn’t need to be expensive. Some of the most effective and meaningful reward strategies aren’t expensive at all. It’s time to rethink how you reward your employees if you want to increase connection, loyalty, and morale.
Why it is more important than ever to reward staff
Recognition, appreciation, and belonging are more important than ever in today’s hybrid workplace, where employees work remotely or in divided teams. Research shows that 69% feel appreciated when receiving personalised rewards. This is a large number and workplace rewards are not just a nice to have, they’re an essential tool to build loyalty and engagement. These perks do not need to be expensive or flashy, but rather they should feel authentic and reflect your team’s values.
Stop using the “one size fits all” solution
While it may be tempting to give everyone the same gift cards or bonuses, or the same branded products, this is often not the best option. It’s tempting to give everyone the same gift cards, bonuses, or branded items because it is quick and easy, but this can be impersonal. Instead, think about each individual person and tailor your rewards accordingly. It doesn’t matter if it’s a small gift that relates to a person’s hobby, such as a sporting event, or an individualized note of gratitude, or even a thoughtful treat for a new mother or someone who is suffering from a loss. These gifts are thoughtful and show you have put thought into them. Do you think this gift would make someone feel truly appreciated? If you answered no, then it’s time to think about something else.
Focus on the moments that matter
It’s not necessary to wait until the end of the calendar year to express appreciation. The best rewards are usually tied to meaningful events. You could reward someone for completing a difficult project, returning from a parental leave, going though a difficult time or simply being brilliant behind the scenes. Consider rewards as a part of your everyday employee experience and not just an annual budget line. Small wins and milestones build connection and loyalty more than large, once-a year gestures.
Recognizing culture builders
It’s not just about the stuff. Rewarding people is about their recognition. And it’s completely free. It is important to create a culture of recognition and clapping for one another. Managers should also thank their employees regularly. Small efforts shouldn’t be overlooked. Slack shoutouts, weekly team victories or handwritten notes are all important in creating a culture where your employees thrive. Evidence shows that people stay when they feel appreciated. 67% of the employees surveyed said they would like to receive more recognition and rewards for their hard work.
Budgeting smartly
Creativity is key when funds are tight. Spending less is not the only option. Consider spending more wisely. Consider supporting small businesses or looking for eco-friendly or ethical products. These can be beneficial to your company’s ESG and social impact goals. Gifts that are thoughtful and reflect your company’s values will be appreciated by recipients.
Instead of spending your money on small things that aren’t effective, concentrate on more targeted rewards. This may seem obvious but it is often forgotten.
Ask them what they would like to hear and then listen. You can get a better idea of how they feel by conducting a quick survey or having a casual chat. You may be surprised at the rewards you receive. It could be an afternoon of flexibility, a donation for a favorite cause or a surprise treat for your team.
Make it part of a bigger picture
It is important to remember that a good reward strategy is not a standalone thing. It’s part of the culture of your team. It should reflect your values, leadership style and the way you want your employees to feel.
Include reward and recognition in your onboarding process, team meetings and reviews. Do not just add it at the end. It’s a powerful way to build loyalty and connect with your customers, without having to spend a lot of money.
People want to be appreciated. They want to feel appreciated and know that their work is valued. HR teams can make this happen. It’s possible to create a rewarding strategy that is truly effective without going over budget with a little creativity, attention and listening.
If you want to retain talent, motivate them and build loyalty, then start small. Stay human. And remember that the thought is what counts.
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