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