5 Big Pitfalls To Avoid In Your Employee Rewards And Recognition Program

R&R done wrong can backfire. This actionable guide shows how to do it right.  We cover: · WHAT are the big NO-NOs of organizational rewards and recognition (R&R) programs? · WHY, exactly, a

R&R done wrong can backfire. This actionable guide shows how to do it right. 

We cover:

· WHAT are the big NO-NOs of organizational rewards and recognition (R&R) programs?

· WHY, exactly, are these harmful for businesses?

· HOW to implement a flaw-free and high-ROI R&R program in your organization that keeps employees and extended teams supercharged all year.

· BUSTING common myths of rewards and recognition programs. 

· HOW XOXODAY’s industry-leading solutions can help you get it right the very first time. 

What Is Employee Rewards And Recognition In Business?

Rewards and Recognition initiatives - often referred to as R&R - are deployed in business to acknowledge people for their performance and contribution towards the organization - be it achieving targets, going above and beyond expectations, or displaying sheer persistence and involvement. R&R programs express appreciation for employees and extended teams in a variety of ways, and can be both cash and non-monetary in nature. Employee recognition is not a one size fits all: It needs to be meaningfully personalized to each recipient. It must also be commensurate, continuous and given without delay. In tough economic conditions where businesses seek fresh ideas, technology and practices to steal a march over rivals, R&R initiatives offer a relatively easy and effective opportunity to build competitive edge by unleashing the potential of talent capital.  

Why Are Employee Rewards And Recognition Programs Important?

Amongst top motivators in the workplace - such as promotion, autonomy or pay - appreciation ranks right up there. Reward and recognition gestures provide a sense of purpose and accomplishment to workers. They tell high achievers that their performance matters, while encouraging laggards to improve. Acknowledging the desired conduct in an individual sets an example for the entire organization, helping foster a culture that’s aligned on the right behaviors. R&R programs have been known to improve employee engagement, boost morale and satisfaction at work, deepen loyalty to employer, increase worker retention and lead to enhanced application, innovation and productivity.  

(source)

“Employees who receive regular recognition are five times more likely to feel valued, six times more likely to invest in their work, and seven times more likely to stay with their current employer for at least another year.” 

(source)

What Is The Difference Between Rewards And Recognition?

Reward and recognition are markedly distinct concepts, although they may be used interchangeably in everyday business. 

Recognition acknowledges attainment, while rewards are a materialistic manifestation of that acknowledgment. 

Recognition is relational: It can be initiated by anyone at anytime and doesn’t involve a budget. Rewards, on the other hand, tend to be more formal; they involve objects and experiences that carry a price-tag. 

Genuine recognition, even if not accompanied by a reward, will leave its mark - but the reverse is not true. A spectacular reward that doesn’t come from the heart will fall flat. Thumb rule? Lead with heartfelt recognition, and try to follow it up with a memorable reward.

5 Disaster Zones To Sidestep

WHEN PLANNING YOUR EMPLOYEE REWARDS AND RECOGNITION INITIATIVE.

Rewards and recognition (R&R) initiatives are run in businesses as a tool to get the best out of employees, channels, gig workers, contract workers, vendors and other ecosystem providers. The premise rests on solid ground: After all, the Norm of Reciprocity, a fundamental driver of social behavior, compels humans to return an act of goodwill. Rewards and recognition are tactfully designed to get the grateful recipient to requite the favor by generating extra productivity and delivering more value at work.  

Only, at a practical level, it doesn’t always play out that way. 

When not done right, even R&R programs fuelled by the best of intentions can backfire. In this article, we take a look at some common, and some not-so-obvious, pitfalls of rewards and recognition in business. And how to overcome them - strategically and sustainably. 

“DON’T DO IT!”

Employee Rewards And Recognition Worst Practices.

What not to do when planning your employee R&R projects.

Reams have been written and discussed about the big DO’s, but the devil of an employee R&R program, so to speak, usually lies in the DON’Ts. The objective of this article is to wrench them out of the blind spot of HR managers and talent leaders, and dry them out in broad daylight for everyone to take note. Our goal is to help you sidestep hazardous landmines, close invisible gaps, identify unexplored opportunities and ensure you tap into the full potential of your employee rewards and recognition interventions. Treat this as a quick reckoner or broad guardrail while designing your company’s rewards and recognition framework.

What Not To Do.

Don’t make your employee rewards and recognition policy too exclusive or too mass-y.

When planned exclusively for the top brass or for top performers, a rewards and recognition program may jeopardize the ethos of inclusivity most organizational cultures are implicitly built upon. Acknowledging the same individuals over and over again may lead to exclusionary dynamics and groupism within the organization, generate speculation of partisanship and favoritism, and create toxic camps of Haves and Have Nots.

At the other extreme lies the ‘blanket’ employee rewards and recognition program which, like the proverbial ice cream, tries to make everyone happy. Designed without much forethought, these ‘one size fits all’ endeavors, not surprisingly, tend to miss their mark, often by a mile. What’s meant for everyone, after all, is meant for no one.

Gallup studies show the most effective recognition is honest, authentic and individualized. In another survey, also by Gallup, only a third of employee respondents believed the rewards they receive were authentic.

When Maria in marketing (who finally got that elusive CEO to register for a demo), John in customer support (who managed to pacify an irate customer who was threatening to take legal action) or Samantha is sales (who cracked a particularly tough territory) all receive the exact same gift card as a token of appreciation - employees talk, each will find out what others got - it somehow doesn’t feel right. The hard earned victory suddenly starts to feel a little less special.

Doubts like “Is my company merely going through the motions?” start creeping in. Distributing rewards in ‘Send All’ mode – without acknowledging the individualistic flavor of each achievement or the peculiar challenges associated with a particular assignment – screams ‘fake’. Employees can sniff insincerity a mile away.

Make It About ‘the One’, Not Everyone.

It's not just about exclusivity, although that too is important. The truth is, Maria, John and Samantha are simply not wired - psychologically speaking - to respond to a particular gesture of admiration in the same way. Since ‘mass distributed’ rewards ignore the unique motivational makeup of the recipient, they fail to touch a chord.

Hard Personalize.

According to Gallup, recognition can drive loyalty, engagement and productivity powerfully – but only when it is personalized.

When generated en masse, on the other hand, they can wreak staggering damage on the organizational fabric and reputation.

A Gallup study unveils the global cost of disengaged employees is a shocking $8.8 trillion annually – a sum larger than the GDP of Japan or Germany.

Mechanical gestures - lacking personal touch and meaning - can make workers question the motive behind an employee rewards and recognition program and, by extension, the organization’s attitude towards its employees. Sticking generic labels like rockstar, ninja, savior, etc to the reward – what psychologists call the overjustification effect - or rewarding too frequently, will only underscore the hollowness behind the intent, and make things worse.

Superficiality breeds indifference, builds a disengaged workforce and in extreme cases can trigger resignation. These folks aren’t returning, and it is safe to assume their reviews in online talent communities won’t be flattering either - both resulting in a depleted candidate pool for the company. Here are other ways a disgruntled employee can hurt business.  

What To Do

Make sure everyone has a chance to earn rewards – just not the same one.

Statutory exceptions or agreement clauses aside, the right to incentives and rewards should be democratized across the organizational rank and file. Foster an equitable culture of appreciation that makes all actors and contributors feel valued by bringing everyone within the ambit of your rewards and recognition umbrella.

PRAISE LIKE YOU MEAN IT.

A survey by Deloitte confirms recognition that is personalized is twice more effective. Just like snowflakes, no two employees are built exactly alike. So get intentional about mapping the reward to the rewardee.

Sync your employee rewards and recognition endeavor with the intrinsic and extrinsic motivational triggers of workers to ‘deep personalize’ every gesture of acknowledgement.

Start by considering what each employee actually cherishes – their values, aspirations and wish lists. Researchers at UC Berkeley found personal goals influence our perception of value.

Use pulse surveys, sentiment polls and one-on-one conversations to understand how unique backgrounds and contexts have shaped the person behind the persona.

As per a Gallup study, only 10% of workers are asked about their reward and recognition preferences. Try involving workers during the planning stage to get a more direct measure of their moods and mandates. The move will not only ensure transparency and ensure genuine delight when they unbox their very own, individualized reward. By showing you value them enough to make the extra effort to understand their world, you will have earned the respect and gratitude of team members.

Here are some questions to ask when you are personalizing for your employee rewards and recognition initiative:

o  Do employees and workers want to be recognized by their seniors and managers, or by peers and co-workers?

o  How frequently are they comfortable being rewarded? Round the year, after specific milestones, or randomly? A frequency that’s less might be inadequate, while one that’s more may come across as phoney.  

o  Do they relish surprises and spontaneous gestures, or do they desire greater control over their choice of rewards?

o  Publicly or anonymously – how would they like to be praised? 68% of respondents in an employee survey confided public recognition affects their capacity to receive a raise or promotion (SurveyMonkey), while 64% shared they prefer a mix of public and private recognition (Gallup).

o  Do they crave individual accolades, or does being recognized as part of a team bring them greater satisfaction?

o  Good old cash or brand new experiences – what makes their eyes light up?

PERSONALIZE R&R AT SCALE WITH XOXODAY PLUM.

Did you know XOXODAY PLUM lets you laser personalize rewards to the intrinsic and extrinsic motivational triggers of every contributor individually - be it employees, channels, partners, consultants or external workers? That’s right - time to say goodbye to the era of forgettable, one-size-fits-all strategies! Instead, look at building lasting, recognition-driven connections by aligning the nature of the recognition to the persona and the occasion. Pick from XOXODAY’s secure, scalable and enterprise grade R&R platform that offers a whopping variety of over 10 million rewards options across 175+ countries and 1Mn+ merchants. Be it cash based products, gift cards, perks, discounts, games, merch and swag, charity opportunities, personal finance products, wellness programs, travel packages or exotic experiences, XOXODAY PLUM has it all. For a closer peek into our industry leading rewards range that’s trusted by icons like Adobe, AT&T, Siemens and several others, book a demo today at XXX.

DOES THE PRAISE FIT THE ACCOMPLISHMENT?

The criteria and metrics of a rewards and recognition framework must also resonate with the type and activity of the role, and the challenges and hurdles that had to be trumped along the way.

GET THE LEADER’S NOD.

To understand that, consider partnering with team leads and supervisors, and give them the freedom to tailor their own recognition programs. After all, nobody has a more authentic pulse of the nature and magnitude of the team’s exploits than the leader of the pack.

ROPE IN PEERS.

In a survey, 92% of employees felt more engaged when they were recognized by peers. Plugging a peer-to-peer element into your employee rewards and recognition platform could work wonders. Co-workers often have the closest view of our struggles and triumphs, which makes their appreciation more memorable and meaningful.

Ally Financial's hugely popular “I Am An Ally” initiative invites team members to nominate colleagues for their contributions and impact. 

INVITE OUTSIDERS IN.

Your employee rewards and recognition roadmap isn’t really comprehensive or complete if you haven’t made room for remote workers, part time giggers, consultants, freelancers, creators and other ecosystem contributors who operate externally.

Deployed strategically and in unison, these measures will go a long way in ensuring that recognition-worthiness within the organization is evaluated through a granular, rational and balanced lens.

Relax. Custom acknowledging every worker individually doesn’t mean overhauling your entire R&R framework or plugging in more resources and budgets. Just being conscious of the inherent diversity of your workforce - and applying strategic tweaks from time to time - will ensure your employee rewards and recognition program carries the right character and vibe at all times.

What Not To Do.

Don’t make your recognition and rewards program a one off affair.

Contrary to popular perception, only 12% of people quit an organization citing compensation issues. For a whopping 79% the reason is, instead, lack of appreciation. Sadly, only 23% of employees surveyed in a Gallup poll felt they receive enough recognition.

Your Army Expects More Pats On The Back.

About four in ten younger workers prefer getting recognition several times (or more) in a week from their manager(Gallup). And as per a Canva study, among employees who are highly satisfied, a good three quarters are recognized at least a few times a month.

Recognition interventions tend to fail when they are sporadic and irregular in nature.

For one, this robs most workers of a fair turn at getting included and feeling valued. Secondly, it prevents the leadership from developing long term bridges with team members.

What Gets Appreciated, Gets Repeated.

Most of your employees will probably never read your R&R policy document from start to finish, but they will remember – and be keen to recreate - the attitudes and conduct that earned them a good word, or fetched a reward that made them smile.

92% of workers are more likely to repeat a specific action after receiving recognition for it.

Frequently recognizing and consistently rewarding reinforces the right behaviours, and is a proven way to build a goal aligned culture.

More than 80% of employees said they work harder when appreciated, and nearly 7 in 10 (69%) stated recognition and rewards keep them loyal to their employers. It’s a no-brainer: Why not do more (and more) of what’s getting results?

What To Do

Build spaces and opportunities for ongoing recognition.

If your employee rewards and recognition program isn’t delivering the kind of value you had hoped for, try substituting “Thanks for your contribution this year!” with “Loved what you did today!” - and you could be in for a pleasant surprise. That’s right. When you convert appreciation from a year end event to a daily habit - the effects can be invigorating. 

And the spoils are worth it:

A culture of ongoing recognition can save a 10,000 employee organization up to $16.1 Mn in turnover costs annually (Gallup). And yet, as many as 40% of employees say they get acknowledged only a few times a year or less. (Gallup

Marquee human development organization Gallup recommends feedback driven recognition should be done every seven days

When In Doubt, Praise More.

53% of employees expect more gestures of recognition from their managers. Experienced people leaders understand there’s no such thing as too much recognition, as long as it is deservedly earned and genuinely given, and promote an appreciation rich environment.

Here are some ways to build a culture of frequent recognition:

· Create collaborative spaces that enable ongoing exchange of views, feedback and appreciation.  

· Encourage innovative ways to acknowledge one another; prioritize ideas that are simple to implement and don’t cost the earth.

· Don’t wait for big moments - integrate spontaneous expressions of gratitude and delight into everyday actions. Stay mindful to locate opportunities in little actions and ordinary situations.   

· Openly celebrate performance to communicate what success looks like, create familiarity, and ritualize recognition like you would a KRA. Caveat: Some workers may prefer to be acknowledged discreetly.

· Provide options for folks to choose their own rewards - this applies to both the giver and the receiver.  

· Recognize givers of rewards as well - after all, they are the champions and evangelists of your R&R culture.

· Do remember that frequent recognition doesn’t mean suffocating employees with an overdose of rewards. Emphasize quality over quantity by infusing meaning into every gesture, and hold on for the right moment.  

ENGAGE WITHOUT A BREAK WITH XOXODAY EMPULS.

Did you know you can build unbroken, non-stop engagement loops amongst employees with XOXODAY EMPULS? With surveys, feedback, smart nudges, in-moment coaching and seamless engagement automated by AI, XOXODAY EMPULS makes sure you don’t miss a single recognition worthy moment - small or big. What’s more, you can instantly turn the occasion memorable with a wide variety of customizable rewards, too. To know more about our agile, scalable and enterprise grade R&R solutions that’s trusted by leading players like Mercedes Benz, Mastercard, Microsoft and several others, book a demo today at XXX.

What Not To Do.

Don’t miss an opportunity to recognize good behavior - and don’t delay in rewarding it.

Research on behaviour indicates that rewarding immediately significantly enhances its impact. It also helps the recipient make a connection between the action and the result. 

Recognition delayed, on the other hand, feels like recognition denied. The moment is gone, and magic has waned, and even the best of rewards will not be able to work its magic now. The longer the wait, the less the payoff from the initiative. 

Instant Gratification Is Everyone’s Childhood Addiction.

From the candy we wanted (“NOW!”) as a kid, to the “BRAVO!” we seek right after a presentation has gone well, humans never really grow out of the craving for instant gratification. 

Sigmund Freud links it with the pleasure principle. Pleasurable activities – like getting a gift - releases the feel-good neurotransmitter called dopamine, and we are drawn to repeat the act over and over again for ‘one more shot’.

The phenomenon can be traced to Hyperbolic Discounting, a cornerstone of behavioural  economics that stipulates humans are willing to sacrifice a big gain that is expected to arrive late, if that can guarantee them a smaller gain immediately. Hyperbolic discounting itself is an offshoot of the Delay Discounting theory, which says delay in receiving a reward perceptibly diminishes its value.

Leaders – Shout Out Right Away!

Research suggests employees are 40% more engaged when leaders make a genuine effort to recognize them. Sadly, over 80% of employees say they don’t receive enough recognition at the workplace.

Peers – Do That High Five Asap!

Not just from higher up (managers, supervisors, senior leadership) - recognition is deeply cherished when it comes from a peer, too. The Globoforce - Workhuman survey showed 41% of employees want to be recognized by a peer. In other studies, 28% of employees said peer feedback has the maximum impact on their feelings of acknowledgment.

Frequent Praise Is Simply Good Business.

The rush of positivity released from an immediate gesture of acknowledgement initiates ripples that travel all the way to the organization’s accounting books. A culture of peer to peer recognition is 35.7% more likely to lift a company’s financial results, while a Gallup study projects 21% higher profitability when employees are engaged.

This is expected since happy employees are motivated to bring their best selves to the workplace. A research claims employees can be as much as 18 times more likely to produce high quality work when recognized for their efforts. And 40% of American workers would pump more energy into their work if they were recognized more.  

Businesses are taking note.

Atlassian has designed its Kudos program to allow their employees to recognize a coworker’s involvement, effort and impact.

What To Do

Build an eye for spotting reward worthiness accurately, and a habit of celebrating it instantly.

Here’s a quick roadmap to get started.

o  Reinforce baselines and benchmarks of desired behavior to establish expectations.

o  Take the help of technology (listening tools, data analytics and people tech platforms) to evaluate reward worthiness - be it impact on business vitals, lift in culture, improved customer satisfaction, cost optimization, enhanced brand reputation or any other parameter.

o  Educate managers and supervisors in the science and art of employee recognition. According to Gallup, 73% of senior managers confess their organization doesn’t train managers or leaders to recognize employees adequately. Initiate people leaders and team leads in the knowledge, skills and tools to quickly identify and effectively acknowledge achievements and contributions. 

o Hail early adopters and active practitioners as role models to influence desired conduct.

o  Integrate real time mechanisms within systems and workflows to enable folks to acknowledge one another without time lag.

o  Break up rewards into smaller morsels and distribute them across milestone moments to sustain tempo and ensure focus throughout the year.

o  Tech tools can help determine the agility and effectiveness of ongoing employee rewards and recognition initiatives, and refine them to improve ROI iteratively.

REWARD GOOD BEHAVIOUR INSTANTLY WITH XOXODAY EMPULS.

Did you know you can identify, evaluate and celebrate every intent, effort and impact as-it-happens with XOXODAY EMPULS? XOXODAY EMPULS lets managers and team leaders monitor and measure employee behavior against pre-set expectations, and applaud milestones with individualized rewards on-the-spot. Generate instant gratification and ensure winning momentum never drops with a responsive, scalable and enterprise grade R&R platform that’s trusted by leading players like VISA, Abbott, HSBC and several others. For a discovery dive, book a demo today at XXX.

What Not To Do.

Don’t make your employee rewards and recognition program ‘Only Culture Led’ or ‘Only Performance Driven’.

Designing incentives and rewards as a cursory culture ritual, or purely around traditional parameters like efficiency and performance, is a common oversight most R&R initiatives suffer from 

While productivity and results are vital, this approach misses the vast, uncharted terrains of opportunity that lie dormant in emotions like intent, resolve, integrity, courage, hard work and various other conduct driven indicators. 

Giving these demeanors the encouragement and credit they deserve can unlock positive transformation across the organizational chain, and 10X returns from employee R&R investments.

Applaud The Invisibles.

Admiring folks whose work doesn’t naturally call attention to itself is a big high for them; it validates their sense of purpose and is a key driver of employee retention

It is important that an employee rewards and recognition program possesses the maturity to look beyond just deal converters and revenue generators. It must have the elasticity to acknowledge less flashy and low visibility roles that support outcomes indirectly. It must also be sensitive enough to accommodate lone wolves, introverts, non-conformists, specially-abled, outliers and other special tribes.  

Bringing these traits and personalities under the spotlight makes your employee R&R initiatives more inclusive, textured and fair. It…

o  Influences a stress-free and grievance-less culture.

o  Ensures opportunities of learning and development are not missed.

o  Creates conductive conditions for great, collective work

The Small Wins, Please!

Hilcorp Energy Company acknowledged the significance of celebrating small successes when they converted their BIG WINS program (which was designed exclusively around major successes) into the HILCORP WIN program - which also hails contributions that aren’t necessarily as spectacular or large.

Wegmans Food Markets makes it a point to acknowledge impact that may normally stay under the radar. It recognizes ‘mundane metrics’ like stores with the best food safety assessments, the highest recycling rate, and similar others.  

Some recognition-worthy attitudes and traits that go beyond mere delivery and revenue are:

Innovation.

Entrepreneurial approach.

Empathy.

Potential.

Initiative.

Selfless teamwork.

Hard work.

Consistency.

Curiosity.

Fidelity.

Courage.

Humility.

Loyalty.

Critical thinking.

Analytical reflection. 

Problem solving.

Resourcefulness.

Judgement.

Balance.

Passion.

Gratitude.

Focus.

Adaptability.

Articulation.

Presentation.

Firefighting.

Morale building.

Leadership.

Commitment.

Involvement.

Intent.

Resolve.

Integrity.

Meticulousness.

Diligence.

Conscientiousness.

Positivity.

Enthusiasm.

Resilience.

Doggedness.

Negotiation.

Networking.

Leadership.

What To Do

Expand the scope and canvas of your employee rewards and recognition program.

Salute the efforts that silently shape the foundation and build the launchpad for more visible success in your organization. 

A mere 22% of project managers and 20% of people managers shared that they get recognized as much as other team members in their organization (Gallup)  

Start noticing the hands and minds that keep the company engine humming tirelessly across functions like operations, maintenance, research, HR, admin, facilities and security.

In an increasingly complex business reality where roles are deeply interconnected, attribution of contribution can be a complex task. It isn’t always easy to disentangle individual efforts from overall outcomes, particularly in modern group environments. One needs to take a holistic, data driven and patient approach to evaluating impact, and stay open to employing lateral thinking and implementing out of the box practices.

Some tactics that might help here are:

  • Drawing on causal theories.
  • Dipping into evidence and data.
  • Factoring-in collateral influences and X-Factors.

ACKNOWLEDGE PROCESS AND ABILITY, NOT OUTPUT AND PERSONALITY.

A hat tip that says “You’re brilliant!” may send the receiver over the moon but doesn’t help anyone else; it fails to demonstrate how others too can nail brilliance. On the other hand, prioritizing the mindset and documenting the procedure – instead of focusing on the specific activity or individual involved – clarifies the expectation and templatizes the conduct to make it actionable and repeatable. This translates into resilient, consistent effort and steady, dogged progress - not just flash in the pan peaks – while rationalizing initiatives where results may not be immediately apparent.

Nurture a rewards linked ‘Lessons Gained’ initiative where insights and perspectives gained from past efforts can be pooled-in to inform future tasks, fly-wheeling a culture of continuous experimentation, implementation and improvement.  

To institutionalize behavior that may not yield instant results or desired outcomes, leaders and managers must remove the stigma attached with less-than-perfect attempts. Encourage fail-fast-and-move-on tactics, incentivise informed risk taking, and be tolerant with the occasional, honest misstep.

CHEER ALL KINDS OF BEHAVIOUR WITH XOXODAY EMPULS.

Did you know you can spot, isolate and recognize behavior across a wide variety of roles and situations with XOXODAY EMPULS? XOXODAY EMPULS lets supervisors and peers track attitude, application and impact across in-house employees, remote workers and distributed teams. Go beyond the obvious and reward every shade and nuance of conduct and contribution. Nurture an inclusive, recognition-first culture that keeps everyone aligned and motivated. To explore our secure, scalable and enterprise grade R&R platform that’s trusted by prominent names like Adobe, Mercedes Benz, HSBC and several others, book a demo today.

What Not To Do.

Don’t restrict appreciation to cash.

Unlock the true potential of your employee rewards and recognition strategy by thinking beyond monetary compensation.

ADD VARIETY, ANTICIPATION AND WOW.

According to a McKinsey report, non-financial recognition serves as the biggest driver of employee experience (EX). It also brings about deeper employee loyalty: IBM found only 21% of employees would leave a company with great EX - as opposed to nearly 50% who would quit if the EX was flat and uninspiring. 

Non-monetary incentives and rewards command an aura the clinical practicality of currency lacks. 65% of employees, in fact, prefer non-cash incentives over money payouts.

The Problem With Cash: It’s Cash.

Cash tends to blend with the paycheque and get equated with regular compensation, failing to stand out in the consciousness. 

As a means of recognition, cash is unimaginative. In its mono dimensionality, it is almost primitive. Cash only conveys the essence of give-and-take in its most fundamental and prosaic form. It can neither capture nor transmit the infinite variance, nuance and richness of everyday interactions and feelings. 

Not the instrument you would choose if you wanted to say something more than just a ‘Thank you for your service, here you go’. 

7 Ways Non-monetary Rewards Break The Monotony Of Money.

  1. Non-cash compensation (like, say, a multisensory massage, an adventure getaway or mind expansion programs) is treated as distinct from regular pay - even when it is part of the total compensation package – and carries the charm of an ‘extra’ bonus.

That’s not their only advantage, though.   

  1. By their very nature, non-monetary rewards represent novel emotions and intangible feelings – the kind of stuff that’s hard to pin down in words. This ambiguity adds to their mystery and mystique, and amplifies their value.
  2. They are also easier to talk about. You can’t flaunt cash (without appearing crass), but a luxury cruise makes for the perfect share on Instagram, generating ‘feel good’ social equity.
  3. Non-monetary rewards (a personally scribbled Thank You note, for instance) are hassle-free and quick to implement too, since they can bypass the elaborate operational procedures and accounting protocols of cash.
  4. Non-cash giveaways are often regarded as luxuries and indulgences we would normally not splurge on (even if we could afford to); this bumps up their allure significantly.  
  5. Non-cash experiences may bring additional collateral benefits as well – such as a rejuvenated mind after a holiday which positively influences work.
  6. Finally, emotions and experiences tend to be perceived as more precious than their actual currency value, which makes non-monetary gestures an economical R&R option.

Few surprises, therefore, when an Incentive Federation study reveals that 84% of businesses are investing in non-cash incentives. This only acknowledges what astute business leaders have always known: Experiences and emotions carry something cash never can - Meaning.

And meaning, at the end of the day, is what people remember.

Case in point: In offices where common workers don’t have easy access to the upper echelons, a cxo personally calling out a job done nicely, or a coffee meet with someone from the senior leadership, can be a transformative experience for an employee. An encounter like that solves for multiple goals at once: 

  • Moves the worker emotionally with a privilege denied to others in an equivalent rank.
  • Lays the foundation for a loyal relationship based on gratitude and admiration, something that can morph into positive reputation in talent communities. 51% of employees who receive regular recognition are highly likely to recommend their company as a great place to work.
  • As a sweet bonus, the occasion may inspire a breakthrough in a current challenge or task at work.

What To Do

Challenge yourself to explore innovative ways to reward people without involving money.

Compensation and rewards that don’t have a cash component to them – such as perks, opportunities and social interactions - acknowledge people not only for what they do, but also for who they are. They help recharge our batteries, allow us to reconnect with our inner self, and reinforce our sense of self-worth.

Non-cash recognition provides workers with spaces and means to pursue their intrinsic passions and impulses and – plumb in the middle of the daily grind – connect with moments of unadulterated cheer and joy.

Here are some steps to integrate a non-monetary layer to your R&R initiatives:

· Get acquainted with your teams on a personal level to decode what matters most to them.

· Their intangible nature makes the value of non-cash incentives confusing to decode or measure. Explicitly communicate the benefits and rationale behind your non-cash rewards program with everyone.

· Share clear rules and eligibility criteria for earning the rewards.

· Roll the program out slowly to allow for gradual familiarization and possible initial pushback. 

· Run a pilot on a small scale first to test response.

· Keep the program adaptable to incorporate shifts in real time.

· Determine the best time (immediate disbursement? Long term instalments?) and occasion for outlaying the rewards.

· Consider gamifying the experience – incorporate challenges and contests, multiple tiers and VIP clubs, badges, trophies and leaderboards - to add a dash of competitive fun.

· Monitor progress, gather feedback, evaluate effectiveness and keep refining the initiative.

What are some examples of non-cash rewards?

The magic of money-free appreciation lies in its sheer variety and versatility. You literally have countless options to choose from, limited only by your imagination.

A few universal favorites are listed below:

Personalized recognition.

Autonomy on the job.

Flexible work arrangements.

Involvement in decision making.

A supportive team and ecosystem.

Time off for personal pursuits.

Learning and growth opportunities.

Personal gestures from the leadership, such as a round of golf with a director.  

Opportunity to lead projects and make contributions.

Access to mentors or the opportunity to be one. 

Exotic experiences like nostalgia tourism, creative workshops with a celebrity, literature walks - to name some.

Perks, like

· Passes to exclusive events and marquee shows.

· Memberships to wellness and fitness programs.

· Support for children, spouse and parents.

· Access to company products and services.

· Time off for voluntary activities, community programs and philanthropic causes.

· Recreational activities like a team excursion, spa therapy or in-house game.

· Fringe benefits like car parking, happy hours, digital gadgets, massage sessions, game nights and so on.    

Examples of companies doing non-cash recognition right.

Cisco gives its employees access to fully-paid-for digital sessions with health professionals. Apple has an inspiring donation matching program. Delta Airlines offers employees free global passes to anywhere in the world. Walmart lets employees access inexpensive healthcare via a reimbursement account. The Walt Disney Company delights employees with complimentary theme park admissions. 

AND NOW, YOU CAN TOO! DELIGHT EMPLOYEES WITH THE MAGIC OF NON-CASH REWARDS WITH XOXODAY PLUM.

Did you know XOXODAY PLUM’s industry leading rewards catalog features over 10Mn rewards, including memorable non-monetary options spanning perks and discounts, gift cards, games, merch and swag, healthcare memberships, finance products, travel packages, charity and philanthropy programs, exotic experiences and much more? You can also add gamification to add some action and adrenalin to rewards attainment. Take your R&R program to a whole new level by integrating the charisma and possibilities of non-monetary appreciation. To explore our secure, scalable and enterprise grade solution that’s trusted by prominent names like Adobe, Mercedes Benz, HSBC and several others, book a demo today.

XOXODAY solves for the big challenges of Employee Rewards and Recognition programs through:

  1. Making rewards and recognition a pan organizational affair.
  2. Hitting the right note - neither too exclusive nor too generic. 
  3. Personalizing rewards and recognition to the nature and magnitude of the accomplishment, as well as the motivations and wish-lists of the recipient.
  4. A mammoth variety of rewards and recognition ideas and categories that acknowledges and honors the diversity in your employee teams.  
  5. Rewarding and recognizing the full spectrum of behaviors and actors - not just rockstars and revenue generators. 
  6. Rewarding and recognizing in-the-moment (without delay) to land maximum impact.  
  7. Building a culture of intentful and continuous rewarding and recognizing.
  8. Rewarding and recognizing in non-monetary ways such as personal transformations and exotic experiences.

Remove potholes from your rewards and recognition initiative, and take your people game to the next level. 

Need expert help along the way? Connect with an XOXODAY expert at <cs@xoxoday.com> and leverage our leadership in R&R to automate and turbocharge teams and outcomes!

Related articles

Schedule a demo with our engagement expert

We want to learn about your culture and show you how Empuls can help you foster connection, feedback, motivation and well-being at your company.

Request a demo