Your Guide on How to Create an Employee Rewards & Recognition Program

How to Create an Employee Rewards and Recognition Program

Building your team isn’t just about finding the right or best talents. It’s much more than that. Because if you find the right caliber but don’t pay them well, engage them, and keep them motivated, they’ll leave.

To succeed in today’s competitive and fast-paced business environment, you need happy and engaged employees who help you build and grow your company. In other words, you need an employee rewards and recognition program.

Employee recognition isn’t just about telling them ‘Good job!’ or ‘Well done!’ and the like. It’s a much larger and broader concept.

So, how can you recognize employees? What is an employee recognition and rewards program? Why do you need one?

Read on to get the answers to all your employee recognition questions!

What is an employee recognition program?

An employee recognition program is a system or software where a company recognizes the efforts, actions, and achievements of its employees.

It’s sometimes referred to as an employee rewards and recognition program or simply employee rewards program.

Instead of a ‘high-five’ or a simple verbal ‘good job,’ a company uses a platform or software to recognize its employees. For each milestone, achievement, or specific action they perform, the company awards employees with points.

These points can be used to mark progress, innovation, actions, or achievements. The direct manager, team leader, or supervisor is charged with awarding these points.

This progress or milestone achievements are shared internally via the platform. Towards the end of each month, employees can exchange their points for rewards offered by the company. Alternatively, the company can give employees with the highest number of points specific rewards.

Why employee rewards and recognition programs are important?

Having an employee rewards program comes with a bunch of benefits.

These benefits include:

• Improving employee performance and productivity
• Increasing employee retention
• Increasing employee satisfaction and morale
• Reducing employee burnout
• Increasing employee engagement??

How to create an employee rewards and recognition program?

Now that we’ve covered the benefits of these programs, let’s look at how to create an employee recognition program for your company.

There are 4 main, broad steps. These are design, educate, implement, and measure.?

Step 1: Design your employee rewards program

When designing an employee recognition program, you must put your employees at the forefront.

Remember, you’re not just trying to check off an item on a to-do list. This means you need to consider your different teams and employees, their needs, and their workflow. You need to include your employee recognition program within your employees’ day-to-day workflow.

Designing any program requires:

• Considering your employees’ needs and workflow
• Including the rewards program as part of that workflow
• Setting objectives, you want to achieve with your program
• Allocating budget
• Setting your policies

Step 2: Educate managers and stakeholders?

To ensure a successful employee rewards program, you must educate your stakeholders, namely managers, team leaders, and supervisors. You should explain to them what the program is, what it does, and the different ways they can recognize employees.

You should also clarify how the points and rewards system works and how to incorporate it in their daily, weekly, and monthly operations.

Step 3: Launch your employee recognition program

It’s time to ensure your employees and managers are on the same page and start testing the employee recognition software.

Talk to managers and team leaders about their work process and tasks given to their teams. Test the software against the milestones managers and supervisors set for about a week or so.

Step 4: Measure the results of your employee rewards and recognition program?

To ensure you have a successful employee rewards and recognition program, you need to measure its results. This means you should see how it affects your employees and their performance.

Using employee engagement and rewards software, you can easily review analytics. You’ll need to determine, early on, which analytics you’ll focus on.

For more in-depth information and to Find out the KPIs to consider in measuring the results, go check the full article on our blog