Personalized Rewards: Boosting Employee Engagement and Business Success

Introduction

Ever had a smile on your face after getting a reward from your workplace? It’s rare, right? We all wish to receive rewards that feel personal rather than some random gift cards that we will never use. This is where personalized rewards make a difference.

Instead of generic coupons, through personalized rewards, employees get to choose rewards that they truly want. This makes the reward culture more valuable and exciting.

Nowadays, the engagement of employees towards the company truly matters in the business world. And, this can be made possible with gifting personalized rewards rather than those generic incentives, which have become outdated in the corporate world.

Before getting more into the topic, let’s understand the basics of generic incentives and personalized rewards.

General Incentives

These are fixed rewards that are given to the employees when they achieve a particular task. It can be in the form of bonuses, awards, appreciation letters, or even salary increases.

Example: Imagine you are a sales executive at a company. You have a monthly sales target of one lakh. If you achieve this target, the company rewards you with a fixed cash bonus of 5000, regardless of how much you exceed the target. It is a fixed incentive for all the employees who achieve the target.

This explains the generic incentive, which is fixed and won’t change based on performance beyond the set goal.

Personalized Rewards

These are tailored rewards given based on an individual’s preferences. It can be in the form of a shopping voucher from their favorite brand or an extra paid day off.

Example: Imagine the same above example of the sales executive. In the personalized reward system, if you achieve the monthly sale target of 1 lakh, you will get 5000 bonuses. But if you achieve more than your target, then you can choose between a higher cash bonus of 10000 or a weekend getaway package or even a gadget of your choice.

This type of personalized reward makes the incentives more engaging by tailoring them to their individual preferences, encouraging employees to go beyond their targets.

As we have discussed the basics of generic incentives and personalized rewards, let's dive deep into the topic and get an idea of which reward system drives more employee engagement.

 How to increase employee engagement?

Employee engagement can be increased to a higher level through reward systems. Companies with higher employee engagement can create an environment where their employees are truly valued. If the employees are not feeling the connection and are not appreciated in a personal way at a company, they can’t be motivated to give their 100% to their work.

To make them feel valued and recognized for what they are doing, these personalized rewards tailored to their preferences will be of great help. It can increase employee engagement and improve retention, which can lead to higher job satisfaction and productivity.

Choosing the right reward system for your employees can result in higher profitability and better customer satisfaction, which can lead to the overall growth of the company.

 Why choose personalized rewards over generic incentives?

 Drawbacks of Generic Incentives

• Lack of Motivation: Employees may not be motivated to think beyond to achieve their target once they reach the goal. This is because of the fixed reward, which will not change even if they exceed their target.
  
  
• No Recognition: Employees who have worked extra hard to achieve more than their target are not appreciated. They are also awarded the same reward as those who just meet the target.
  
  
• Limited Engagement: Employees may not feel valued in a company if they are not satisfied with the rewards, which are not meaningful for their hard work. This will affect the long-term engagement and loyalty of the employees towards the company.
  
  

 How do personalized rewards enhance employee loyalty?

• Boost Productivity: Employees feel valued when rewarded with something encouraging and meaningful to them. This will help them perform better as it increases their productivity and boosts motivation.
  
  
• Reduce Employee Retention: When the employees are valued and appreciated at their workplace, the chances of them looking for other opportunities are reduced.
  
  
• Builds a Positive Work Culture: When the efforts of employees are acknowledged in a workplace, it encourages a culture of teamwork and appreciation of their hard work.
  
  
• Strengthens Employee Engagement: When employees feel personally recognized for their efforts, they are more likely to be committed to their work roles.
  
  

 Personalized rewards on driving better business outcomes

The major question that pops up to the company management will be: Aren’t personalized rewards expensive? No, it is not. A simple change in your reward system could increase the company profits by gifting the employees with tailored rewards.

Personalized rewards often deliver better ROI than generic incentives by reducing employee turnover and increasing productivity towards the company. They don’t just benefit employees, but they also drive real business growth.

 How to make personalized rewards work for your team

Is the main objective of your company to keep your employees happy and motivated?

A personalized reward system can help you achieve it. Here’s how you can make it work for your employees:

1. Find out your employee’s preferences:
   Not every employee wants the same kind of reward. Some might love gift cards, while others prefer an extra paid-off. But, how to find out what your employees truly want? The answer is simple- ask them! Simple feedback sessions or quick surveys can give you a clear idea of what excites your team members. And, this will help you in altering their rewards.

2. Use technology to make it an easy process
   Managing a reward program doesn’t have to be a headache. Platforms like The Reward Store can help you distribute rewards very easily. With over 8000 brands to choose from, your employees will have plenty of options to pick what they love.
   
   
3. Align rewards with company values
   Rewards should reflect your company’s values and culture. If teamwork is a big deal in your workplace, consider team-based rewards. It can benefit your employees more than individual ones. If wellness is a priority, gym memberships or any wellness vouchers could be great choices.
   
   
4. Monitor and keep the reward system updated
   A reward system isn’t something that is once set and forgotten after that. It should be updated by keeping track of what’s working by gathering feedback and checking the engagement levels from time to time. If something is not working, make adjustments as needed.
   
   

Therefore, a well-planned rewards system can boost motivation, improve retention rates, increase productivity, and create a positive work culture for the employees.

 Future Trends in Personalized Reward System

Workplaces are changing and so are reward systems. Days of generic gift cards and fixed bonuses are overrated. Employees now expect something more personal and meaningful. So, let us take a look at the future trends in personalized reward systems.

• AI-powered rewards: Smart platforms now analyze employee preferences and work performance to suggest rewards that actually motivate them. No more generic incentives, only rewards that truly matter to the employees.
  
  
• Experience-based rewards: Employees prefer experiences over material gifts. Companies are offering travel, wellness retreats, and even online learning courses as rewards. These create lasting memories and real personal growth.
  
  
• Instant and flexible rewards: Whether achieving a target or completing a big project, instant incentives are the new trend. Companies are now using digital platforms to give real-time rewards, making it more exciting.
  
  
• Go-green with rewards: More companies are rewarding the employees in an eco-friendly way. Donations to green initiatives or a sustainable lifestyle reward.
  
  
• Making rewards fun: Work gets way more fun when the rewards feel like a game. Elements like badges, points, and all encourage healthy competition among employees and it pushes them to do even better. They can redeem these points for rewards of their own choice also.
  
  

 Conclusion

Switching from generic incentives to personalized rewards can make a huge difference in a workplace. When employees feel truly valued, they stay motivated to work. This will increase the engagement level and can benefit the company too.

So, stop creating an outdated company workplace and start welcoming something that will benefit the company and the employees as well.

If the employees are happy, the company will see the growth. So, create something that is meaningful, like rewarding your employees with their personalized preferences and likes.

A small effort in understanding your employees can make a big difference. Whether it’s a thoughtful gift, extra time off, or an experience they will cherish in their life, the right reward can turn appreciation into long-term loyalty of your employees.

Ready to make an impact? Start your journey with the reward store- your one-time stop to make your employees happy!

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