Running employee loyalty programs is an effective way to boost employee engagement and retention in your organization. Research shows that engaged employees are 17% more productive compared to dismissive co-workers. They consider company success their success and work hard to help their organization achieve its business goals faster. Employee engagement is beneficial for an organization in many other ways.
It boosts employee retention rates, lowers employee turnover, and most importantly, encourages employees to be more productive at work. However, studies suggest that only 34% of employees are engaged at work (as of 2022). A low employee engagement rate usually results from a lack of appreciation and motivation at the workplace.
Employers must ensure that they make their workers feel valued, and boost employee engagement. Here are some effective employee loyalty programs and activities to boost employee engagement:
1. Joining Benefits
While hiring valuable resources for your company, understand that they might be considering other job offers from your competitors. Offering a joining bonus is one way to make them choose your organization. You can also use the joining bonus as a bridge between your employee’s expected salary and the salary you are offering.
You can also pay it as compensation against any additional benefits that your employees were getting in their previous company. Generally, a joining bonus is 10% to 20% of the annual CTC of an employee. A joining bonus creates a positive anchor for the journey of your employee.
2. Rewards for Personal Occasions
Recognizing your employees on their special days, like birthdays, work anniversaries, etc., is another great way to boost employee engagement in your organization. You can send them personalized messages, organize a celebration, and ask them to share their experiences at your workplace.
Gift your employees something valuable, such as paid time off, gift cards, discount coupons for restaurants, etc., on special occasions. You can also recognize and award your employees when they achieve a new milestone. No employee likes a workplace without any
emotions. Celebrating their happy days makes them feel valued and encourages them to stay loyal to your organization.
3. Festive Bonuses
Studies have shown that employees’ engagement rises when they have a sense of belongingness to the organization and its leaders. Providing festive bonuses or gifts is a great way to build a strong relationship with your employees. Organizations should try to make employees feel that their organization cares for them and not just about their work.
Offer them a decent bonus or valuable gifts, such as gift cards, as a festive season benefit. When employees feel good about your company, employee engagement rises and increases productivity.
4. Milestone Rewards
A milestone-based rewards program can help you build a healthy competitive environment for your employees. Recognize their accomplishments at work and award them something valuable, such as a certificate of appreciation or a small gift. For example, you can reward your employees for completing a big project successfully.
Another example is rewarding them for completing their tasks within the deadlines. These rewards motivate your employees to perform even better with dedication in future projects. Running continuous employee loyalty programs with different tiers is also a good idea.
5. Performance-Based Incentives
Performance-based incentives are another great motivational driver for employees to work hard. These rewards are reciprocal for both employers and employees. Performance-based reward account for employees’ contributions to the employer’s growth. Most businesses have defined KPIs (Key Performance Indicators) for every role in the organization.
Performance-based incentives will often remain linked to these KPIs. Anyone exceeding the KPIs can drive the following actions:
- Renewed or upgraded KPIs
- Surprise rewards or bonus
- Promotions or role upgrades
These incentives can be general or extraordinary financial bonuses that the employees receive with their fixed salary. You can offer these incentives to appreciate employees for working overtime, completing their tasks on time, making more than the expected sales, and being punctual.
6. Peer-to-Peer Recognition
Peer-to-peer recognition refers to the appreciation between co-workers who may not have a direct rapport. Generally, employees expect feedback from the employer. However, getting appreciation from co-workers can be equally amazing.
You can encourage peer-to-peer appreciation in your firm by recognizing your employees publicly and frequently. Organize team meetings to let all your employees know the accomplishments of their co-workers. It improves company culture, strengthens team morale, and boosts employee productivity.
7. Annual Perks and Promotions
Studies suggest that even the most engaged employees often feel demotivated at work. This can happen for several reasons, including if they do not receive appreciation or promotions in due time. Employers must ensure that deserving employees are promoted adequately and within due time.
You can promote them designation-wise, salary-wise, or both. Offering annual bonuses at the end of each financial year is also a great way to motivate your workforce.
8. Referral Incentives
Referral incentives are the monetary or non-monetary benefits employees receive on referring qualified candidates for vacant positions in the company. Your employees may have a good network of qualified candidates, which include their college peers, former co-workers, etc.
Referral incentives can encourage your employees to recommend your company to their connections. This is one of the most cost-effective ways to recruit potential employees. Well-executed referral programs are also effective in increasing employee satisfaction and retention rates.
9. Long Service Rewards
Long service rewards incentivize the service period of the employees at the firm. These can be considered a token of thanks to the employees for their commitment to the organization.
Generally, these rewards are offered on completing 5, 10, 15, and 25 or more years with an organization.
As a long-service reward, you can offer financial bonuses, discounted loans, family vacation packages, home purchase assistance, etc. Synchronizing this incentive with the employee’s ongoing financial or personal needs will ensure that the employee sticks with the firm longer.
10. Sales Incentives
The job of a salesperson is one of the most stressful jobs. It is common for sales executives to feel demotivated at times. Offering sales incentives is one of the best ways to help them deal with this stress and keep them motivated.
Along with their fixed salary, you can offer monetary incentives for completing targets, making more than expected sales, and getting potential clients onboard.
11. Retirement or Exit Rewards
Retirement rewards are the benefits employees will receive on completing their years of service at the firm. It is a great way to thank your employees for their continuous hard work and dedication towards your company.
You can offer monetary benefits or run pension schemes as retirement benefits. Great retirement rewards also encourage other employees to stay loyal and work for your company longer.
Why Choose RewardPort for Employee Loyalty Programs?
RewardPort is one of the top rewards and loyalty solutions providers in India. RewardPort can run loyalty programs that work best for your organization. Some of the features of Employee Loyalty Programs by RewardPort are as follows:
- Culture of appreciation
- Imbibe company values
- Lead to employee retention
- Gamification for a higher engagement
RewardPort offers modern rewards with proven engagement tactics for multiple generations to ensure the effectiveness of employee loyalty programs.
Frequently Asked Questions: -
Here are the benefits of employee loyalty programs for employees:
- Makes them feel motivated at work
- Makes them feel valued for their contributions to the organization
- Reduces employee stress
Key features of a successful employee loyalty program are:
- Frequent rewards
- Valuable rewards that employees are interested in
- More rewards for better performance
Here are some important metrics to measure the effectiveness of an employee loyalty program:
- Analyze the changes in employee retention rates
- Compare employee performance before and after the loyalty program
- Behavioral changes in employees
What is Employee Engagement? Employee engagement in the workplace is the practice of working with dedicated employees who don’t simply do their work because they are paid for it but because they are entirely immersed in it.
Who wouldn’t enjoy working with such individuals? Even while your company could value such dedication and participation, it’s important to consider whether you’re doing enough to encourage them and conduct employee rewards programs.
One of the well-liked methods to raise employee engagement is by appreciating them and sparking dedication by introducing employee rewards programs.
How Hazardous is Disengagement in the Workplace?
The term “disengagement” is blatantly harmful to companies. Even while disengagement can be very subtle and challenging to spot, it can result in glaring issues like low morale, high attrition, and low productivity.
These disengagement figures are important for you to be aware of.
The total cost of employee disengagement to businesses is close to $450 billion annually.
One of the best employee rewards for retaining engagement is a demanding environment. According to a different study, 33% of employees switch jobs in search of more challenging positions.
How therefore may employee engagement be increased? Programs with incentives may be useful.
What are incentive programs for employees, and how can they boost engagement?
We’ve covered enough of employee disengagement and its consequences to return to encouraging engagement.
Employee incentive programs are created to keep the best personnel on board and to keep them engaged in and satisfied with their work. The most well-known and well-liked of these incentive schemes is the employee rewards one. But there are so many more varieties. The best employee incentive programs, which will notably improve levels of engagement as listed below.
Employee incentives and prizes are unquestionably effective motivators for keeping workers interested in their jobs. Rewards are classic motivators, yet they still function well. A well-known survey found that 69% of workers still view rewards as a fantastic motivation to raise engagement levels.
However, by making the appropriate technological and instrument investments, you can increase their effectiveness.
Employee Incentive Programs for Amazing Employee Engagement
1. Rewards and Recognition
Employee incentives and prizes are unquestionably effective motivators for keeping workers interested in their jobs. Rewards are classic motivators, yet they still function well. A survey found that 69% of workers still view employee rewards as a fantastic motivation to raise engagement levels.
However, by making the appropriate technological and instrument investments, you can increase their effectiveness.
2. Learning and Development Programs
L&D programs can be very successful employee incentive programs in addition to being strategies to enhance skills. Employees today are just as interested in financial rewards as they are in their professional development.
Because of this, well-crafted L&D programs may keep their interest and encourage them to remain in their positions for a longer period. Recognize the training and educational needs of your staff and provide them with the same incentives. Your staff will appreciate the effort because such L&D programs can be expensive to afford separately.
3. Workplace Flexibility
Offering flexibility is one of the most successful employee reward programs that are also simple to execute, which may surprise you. The ability to select the ideal tasks and work hours is one example of flexibility. It can also entail removing constraints and allowing workers to work from wherever they like.
Flexibility fosters freedom and innovation, which keep workers motivated.
4. Gifts and Rewards
A fantastic way to keep your employees engaged is to give them enjoyable presents that demonstrate your concern. Nearly every organisation has a gift or incentive program in place. It matters how you select these presents and how you distribute them.
Make sure to include enjoyable, personalised presents that you can give out on special occasions like anniversaries and holidays in the list of incentives for employees.
Such presents don’t have to be pricey undertakings. Depending on the circumstance, a gift card, a personal note, and little nibbles are all suitable possibilities.
You can also think of personalised tech accessories, spa days, movie tickets, and another spectrum of rewards which you must avail from a high-quality brand i.e., RewardPort which is India’s leading rewards and solutions company.
5. Strategic Recognition is Must
Maintaining a positive work environment is crucial; organisations that use strategic recognition are more likely to see increased employee engagement levels.
Your staff should constantly update and improve their abilities, and praise and prizes encourage them to do so.
According to studies, workers who are given credit for their accomplishments are more inclined to push themselves and become more productive.
6. Professional Development
Millennials place the highest priority on professional development, with 40% of employees with restricted possibilities leaving after five years. They care when you invest in their careers, and they’ll stay with you for the long run. The fresh insights and experiences that staff members bring to the table are advantageous to your business as well, creating more internal advancement prospects.
Like Facebook, you may also offer a coaching program for new managers. Managers receive one-on-one time with an executive mentor at the program’s conclusion. To make your current courses more interesting, you might even consider gamifying them.
7. Profit Sharing
A defined contribution plan, such as a profit sharing plan, can be used in place of or in addition to more conventional plans like a 401k. Employees who participate in a profit-sharing plan get contributions to their retirement accounts (in the form of cash or shares) as well as direct payouts on occasion. Employers are able to cut these at any moment, allowing them to control costs for a year or two as needed.
Employees that participate in profit sharing begin to see themselves as owners rather than just employees. As a result, employees are encouraged to stay with the company and put in their sweat equity to help it expand.
8. Fun Gifts
Giving gifts to your staff to show appreciation demonstrates your concern. For company-specific holidays like work anniversaries, customer service week, global wellness day, or boss’s day, gifts make excellent incentives. Create enjoyable contests and quizzes to gamify each of these holidays, and reward and honour staff members who participate the most.
Without a question, employee incentive programs are essential for controlling employee engagement levels at work. An engaged employee is more autonomous, innovative, and invested, all of which will have an impact on the productivity and expansion of your business.
It’s time to start focusing more on your employee rewards programs if you haven’t already. Lack of involvement may spread like a weed, quickly taking down everything good with it. Therefore, it’s crucial to spot the weed early on and pull it up. Employee incentive schemes can assist in taming negativity and encouraging better employee engagement and experience.
To learn how to modify your current employee incentive programs, contact RewardPort. Our experienced and dedicated team of marketers understands your needs and creates strategies that work like a pro. We have been titled as India’s leading loyalty rewards company, and now we aim to make your brand number 1.
Frequently Asked Questions: -
The most important drivers of employee engagement are - leadership, company performance, management system, teamwork, the workload on employees, the environment of the workplace, feedback and employee recognition, monetary benefits, promotions, etc.
Employee engagement is important in every organization to keep the employees motivated and loyal to the company. It encourages employees to keep themselves dedicated and work for the growth of the company instead of thinking only about their benefits.
Employers are interested in employee engagement as they want their employees to remain loyal to the company and work hard for its growth. Even the most hard-working employees are likely to leave the company where there is no employee engagement as they don’t feel valued there. This is why keeping the employees engaged becomes necessary for every organization.