October 7, 2024
Employee Rewarding
Building a culture of recognition is not an overnight task. Your employees might not demand that they be regularly incentivized for their work, but it is better if you do, and it is something that they will appreciate. Reward and recognition programs are pivotal for your company’s success as you scale.
There is a lot of interest surrounding employee rewards because they are shared on social media handles, eliciting a lot of conversation around them. Employee rewards are also a great way to increase retention, productivity, and satisfaction in the workplace.
In this article, we look at custom vs. standard employee rewards, and how it affects the organization. It will explore both options and help you determine which is best for your business goals and vision.
They are predefined and offered by the company without any employee input. Since the rewards are chosen by the employer, employees have less control over what they receive.
Since they follow a predefined structure, standard rewards are easy to implement. It saves time and administrative effort since there is no customization involved. Standard rewards allow you to stay efficient as the process of distributing these rewards doesn’t involve complex requirements that need to be met.
You don’t have to invest a lot of resources if you are offering standard rewards. It is especially rewarding for larger teams as the rewards are the same for everyone.
They can be easily and quickly scaled across a large workforce without requiring adjustments or additional resources.
It offers the same reward for everyone, regardless of their preferences, as they are not taken into account at all. This can even backfire as employees might be fed up with the lack of choices every year.
When employees know that it is going to be the same reward as last year, there is no scope for surprise, and it wouldn’t instill any motivation inside them either. There will be no buzz among the employees wondering about the rewards because there is no surprise involved.
The problem with standard rewards is that most of them make you wait for almost a year. You might not even be eligible for anything by the end, which you will get to know only at the fag end of the year. It will hardly keep the employees engaged when the gratification is never instant. In-time appreciation is crucial to keep the stakeholders aka the employees interested, and for this, a custom employee rewards program like The Reward Store is a no-brainer.
The biggest problem with standard rewards is that they only tend to reward the top performers, while the rest of them slave away without feeling appreciated.
A major disadvantage of standard rewards is that they don’t usually meet employees' personalized needs or expectations. Therefore, they might not show a lot of interest over time. If the organization aggressively pushes them to be a part of the program, it might result in resistance, thereby lowering the morale of the employees even more.
They don’t follow a one-size-fits-all strategy but have a tailored approach to each employee. It shows your employees that you understand what they value and appreciate their unique tastes and interests. In a survey conducted on more than 40,000 workers worldwide at companies with 500 or more employees, 70% of them opined that recognition is more meaningful when it is personalized.
Custom rewards are easy to align with your employees’ individual preferences and aspirations. From bespoke gifts to experiential rewards, you are only stymied by your imagination. You can customize the reward to such a level that it resonates on a personal level with the recipient.
When employees get rewards that truly matter to them, they are more likely to feel appreciated. Even something as inconsequential sounding as a “thank you note” or a special lunch can make your employees feel appreciated. Getting customized rewards to their liking will give them a great deal of satisfaction
Custom rewards and recognition efforts build an environment where employees feel appreciated. When employees receive gifts that resonate with them, they are more likely to stay longer as they feel valued at the organization.
Custom rewards have a flexible redemption process, unlike standard rewards that have inflexible rules. The recipients can choose how, when, and where they can redeem their rewards. This results in a personalized experience, making it more convenient and enjoyable.
Creating personalized rewards can take up a lot of time, effort, and resources. Sourcing customized items or experiences will increase logistical challenges, resulting in higher expenses.
As your company increases in size, it can get more difficult to manage and deliver custom rewards.
Custom rewards may not align with an employee’s expectations since what is meaningful for one person might not be for another.
The preferences of employees can keep changing over time, making it difficult to keep rewards relevant and personalized.
While the above drawbacks might seem huge, their impact is hugely reduced by working with a rewards program like The Reward Store.
When choosing between custom and standard employee rewards, you must weigh the pros and cons of each to find what works best for your team.
Choosing between custom and standard rewards depends on a variety of factors, which we have discussed above. But if your goal is to provide an excellent reward program that caters to individual choices and preferences, custom rewards is the way to go, there is no doubt about that. You can nullify several of the drawbacks of custom rewards by working with a reward program like The Reward Store, thanks to its suite of features and functionalities.
Incorporating a comprehensive employee reward program will have a huge effect on your bottom line, and most importantly, your employee morale. By using a mix of standard and custom rewards, you can create an engaged workforce who are ready to go above and beyond what is expected of them. If you can breed a culture of recognition, it will drive business success and also instill a sense of loyalty among the employees.
If you are confused about the kind of employee rewards you want to offer, get in touch with The Reward Store team. We will be happy to guide you and introduce you to our plug-and-play reward software that can fetch you excellent results and brownie points among your employees and customers alike.
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