How do you reward innovative thinking?

1 Why reward innovation?

Rewarding innovation is not only a way to show appreciation and gratitude to your employees, but also a way to motivate them to keep innovating and improving. By acknowledging and celebrating their contributions, you can boost their morale, confidence, and satisfaction, as well as reinforce the values and goals of your organization. Rewarding innovation can also inspire others to emulate and collaborate with the innovators, creating a positive feedback loop and a synergistic environment.

2 What are some types of rewards?

Rewards can be tangible or intangible, monetary or non-monetary, individual or collective, formal or informal, depending on the context and the objectives. Some examples of tangible rewards are bonuses, raises, promotions, gifts, certificates, or plaques. Some examples of intangible rewards are praise, recognition, feedback, autonomy, flexibility, or opportunities for learning and growth. The key is to align the rewards with the needs and preferences of your employees, as well as the nature and impact of their innovations.

3 How to design a reward system?

A reward system is a set of policies and practices that define how and when to reward innovation in your organization. This system should be clear, fair, consistent, and transparent, while also being aligned with your strategic vision and values. To design a reward system, you must first define the criteria and indicators of innovation, as well as determine the types and levels of rewards. Lastly, it’s important to communicate and implement the reward system effectively by informing and educating your employees about it, as well as monitoring and reviewing the reward system.

4 How to avoid common pitfalls?

Rewarding innovation can also have some unintended consequences if not done properly. To avoid these pitfalls, it is important to recognize the process, the team, and the value of innovation. Rewarding only the outcomes can discourage experimentation, diversity, and resilience. Additionally, rewarding only the individual can create competition, isolation, and resentment amongst team members. Lastly, rewarding only the novelty can lead to superficial, irrelevant, or harmful innovations rather than something useful or beneficial for customers and society.

5 How to solicit feedback and suggestions?

Rewarding innovation is not a one-way street, but a two-way dialogue between you and your employees. To enhance and improve your reward system, you should solicit feedback and suggestions from your employees, customers, partners, or experts. This can be done by conducting surveys, interviews, or focus groups to gain insight into employee satisfaction and motivation. You should also create a suggestion box or platform for your employees to share their ideas and opinions on how to reward innovation better. Additionally, implementing a peer recognition program encourages employees to nominate, vote, or acknowledge their peers for their innovative achievements. It's important to recognize and reward the peer recognition as well.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?