How Can Different Types of Reward Management Drive Employee Engagement?
One of the best ways to achieve these goals is to introduce strategically designed and executed rewards programs. In this blog, we deconstruct the role of strategic reward management and spotlight the top reward categories that drive employee engagement, productivity, and business growth.
What Is Rewards Management?
Reward management refers to a strategic and structured process that enables businesses to recognize and reward their employee as a tool to boost employee engagement and success. Today, businesses can choose from a range of rewards.
Let’s understand the various options and how they play out based on a company’s employee profile, nature of business, and goals.
Different Types of Rewards Management
1. Monetary Programmes
Monetary reward management programs strategize, organize, and execute inducements of a financial nature. Here’s a list of four types of monetary rewards:
- Bonus: This is a lump sum paid annually based on an employee’s and the company’s overall performance. It is a useful reward for those whose performance directly impacts a company’s bottom line.
- Incentives: An incentive is an inducement, such as a sales commission, that is based on daily performance. It can motivate employees to be more outcome-oriented.
- Profit-Sharing: Stakeholders such as business partners and investors who are placed high in the corporate hierarchy benefit from profit-sharing. However, most employees do not have access to this reward.
- Stock Options: This is a great tool for businesses looking to incentivize high-value employees to join or retain when they are unable to pay higher compensation.
2. Non-Monetary Programmes
Businesses looking for a high-impact, cost-effective approach to reward management can consider two types of non-financial rewards:
- Recognition: Employees have a universal need to be recognized, no matter what level of the hierarchy, sector, and profession they belong to. Verbal recognition can be delivered via email, online and offline team meetings, and through one-on-one in-person praise. Employees can also be recognized via awards and certifications.
- Digital Gift Cards: A gift card reward management system comprises a structured, automated solution that companies leverage to reward employees with personalized and memorable experiences as they attain various milestones. They can redeem the gift card value in exchange for products and services across a wide range of consumer categories and brands.
The Qwikcilver Way
A key challenge with monetary programs is that the business’s success drives the frequency of rewards. They are also inaccessible to most of the workforce.
On the other hand, superior gift card programs have mass appeal. They are relevant to employees at every level of the hierarchy and can be offered more consistently. Hence, they are more effective in boosting employee motivation, morale, and productivity.
For instance, Qwickcilver’s unique gift card program is designed to deliver an automated, gamified, data-driven employee experience through the adoption of DarwinBox. Businesses can choose from a wide range of branded options and consumer categories based on the needs and aspirations of their workforce.
The Conclusion
End-to-end gift card solution provider Qwikcilver, for instance, powers large-scale employee gift card programs that offer multi-category, branded experiences and sustained employee engagement. Today, this secure and complete gift card processing and distribution solution is offered on a SaaS model across three continents and 17 countries.
