The corporate world is fast-paced. You invent one thing, it gets old in no time. A similar thing happened with rewards. But came in custom rewards.
But pursuing innovative ways to keep workforces motivated and engaged doesn’t stop. To tackle generic awards, one of the most effective strategies is implementing custom employee rewards. These rewards are tailored to individual employees’ preferences, needs, and aspirations.
They connect on a personal level, fostering a stronger connection between employees and their organization. But how are they becoming a game changer for organizations from a business perspective? Let’s find out.
Boosts Employee Engagement
We don’t need any more studies to prove that employee engagement is one of the most significant factors affecting employee satisfaction. And the one motive that triggers employee engagement to its best version is employee recognition and appreciation. When employees feel valued and recognized, their engagement levels naturally increase.
Generic rewards, while appreciated, often fail to strike a chord with employees because they lack personalization.
Whereas custom rewards can serve the right place. For instance, rewarding a fitness enthusiast with a gym membership or providing an avid reader with a book subscription.
Engaged employees are:
- 17% more productive than their disengaged counterparts.
- 21% more likely to recommend their workplace.
Custom rewards play a pivotal role in fostering this engagement by making employees feel truly valued.
Encourages a Sense of Belonging
Imagine your boss remembering that you love a specific book and gifting you that on your birthday? Would that not automatically feel that you belong and are heard there?
This is why custom rewards help. They are focused on acknowledging the unique contributions and characteristics of each individual. For example, celebrating an employee’s cultural heritage with a meaningful gift related to it. It can make them feel so respected.
This cultivates a positive environment where diversity is celebrated.
Increases Motivation and Productivity
Rewards are a powerful motivator, but their impact is significantly amplified when they align with an individual’s interests through personalized rewards. Imagine you keep giving an Amazon voucher constantly with no personalization. This might motivate them at the beginning, but will it continue to do so in the long run? Nope.
Imagine an employee who loves travel receiving airline miles as a reward for outstanding performance. This thoughtful gesture is far more motivating than a generic voucher. Such rewards create a deeper emotional impact, inspiring employees to continue excelling in their roles.
Key stat: Companies with robust recognition programs (often involving custom rewards) see a 31% lower turnover rate and higher productivity levels.
Enhances Retention Rates
Replacing an employee who quits usually costs between 33% to 50% of their salary. (Source)
They really are costly, both financially and in terms of team morale. People have grown from prioritizing only money to now focusing on the overall workplace culture of an organization. Their non-negotiable factors have changed. One of the primary reasons employees leave is feeling undervalued.
A rewards program that reflects genuine appreciation and understanding of employees’ preferences can significantly reduce turnover. Custom rewards show employees that their company is invested in their happiness and satisfaction, making them less likely to look elsewhere for opportunities.
Consider this:
Employees who feel appreciated are twice as likely to stay with their employer compared to those who feel unappreciated.
Aligns with Generational Expectations
Modern workplaces are more diverse than ever, with multiple generations coexisting under one roof. From Boomers to Gen Z, the expectations are ever changing.
Custom rewards bridge these generational gaps by catering to individual preferences rather than adopting a one-size-fits-all approach.
Example:
- Gen Z: Experience-based rewards such as concert tickets.
- Millennials: Flexible working options or professional development courses.
- Gen X/Boomers: Long-term rewards like retirement benefits or loyalty programs.
Reflects Company Values
A well-designed custom rewards program is a direct reflection of the company’s values and priorities. The best part? You can reward individuals based on the company value they are reflecting through their work.
For instance, a company that emphasizes sustainability might reward employees with eco-friendly products or experiences. This not only reinforces the company’s values but also strengthens its employer brand, making it more attractive to like-minded talent.
Examples of Custom Rewards in Action
Lifestyle employee rewards
But with a twist. This perk really needs to be well-customized because we all follow a different lifestyle and interests. Have multiple employee recognition incentives open – fitness, an OTT membership, gaming equipment, meals, etc. Let people choose what they want to buy.
Choose your next project
You did something great in your current project. And we’re sure you’re going to do so in the next one that you pick up. How about you choose what you want to work on instead of us assigning it to you?
Listening to something like this can really impact the motivation of an employee to be creative and do their best on their project. The reasoning: They are doing something they chose and not something they are forced to work upon. This will definitely impact the organization as well through the reciprocation employees show for their work.
Reimburse an event
Are you more of a sports person, or would you like a standup gig better?
Offer a reimbursement of a certain amount for the employee to pick any weekend event that they like and are wanting to attend. This would be a great refreshment for the employee and is also a very rare benefit one can get.
Try a custom rewards tool
This is by far the most recommended personalized rewards idea to recognize an employee. Onboarding the correct employee recognition tool is important. To make it right, make sure:
- Choose a tool that aligns with your recognition goals. For example, if your goal is to highlight your company’s morals and values, choose a tool that allows you to present which company value did the employee perform and is being rewarded for.
- Is it customizable? We’re talking custom rewards, so it is important to ensure that the tool has this feature.
- The tool should have solid customer support in place.
- Look for any other features if you need them – birthdays and anniversaries.
Pick your own reward
Isn’t that what custom rewards are all about? Some creative ways to reward employees. Allow employees to choose an award from a curated and diverse list of team prizes ideas. The list should be comprehensive and should cater to multiple interests.
Conclusion
Custom creative ways to reward employees are not just a nice-to-have; they are an essential tool for building a motivated workforce. By recognizing the unique needs, organizations can foster a culture of appreciation, drive productivity, and reduce turnover.
FAQ
Why are custom rewards important for employees?
Custom rewards show that the company is ready to go the extra mile to make their employees feel valued. Generic rewards are great but are often not worth the efforts an employee makes. Sometimes they don’t even cater to their interests. Custom rewards prove that employees are genuinely happy and implements the true meaning of employee recognition.
How do custom rewards impact employee satisfaction?
66% of employees prefer personalized rewards over generic ones. It’s no surprise that custom rewards are a more popular choice among people. Hence it automatically becomes easier and more impactful for a company to make their employees feel more satisfied through custom rewards.
Are custom rewards cost-effective for the organization?
Yes, custom rewards can be cost-effective as they not only boost engagement but also improve retention, and deliver better ROI by being more meaningful than other generic options.
How can we ensure fairness in distributing custom rewards?
The best way to go about maintaining fairness in distributing custom rewards is by setting clear criteria based on performance, milestones, or contributions, and communicating with them transparently. Align rewards with company goals while considering individual preferences to maintain fairness and consistency.
