Why You Should Personalize Employee Rewards

In a recent Deloitte Global Human Capital Trends survey, 37 percent of HR leaders rated rewards as very important, with only 9 percent admitting that they are “very ready” to implement those rewards programs.

Rewards have always been a leading method of engaging and motivating employees, but many managers and HR leaders are currently struggling to create effective rewards programs as employee preferences and expectations have markedly shifted over the last decade.

Companies that used to deliver standardized rewards are moving towards more personalized systems that are highly aligned with individual preferences. Here is why you should consider personalizing employee rewards within your organization.

personalize employee rewards

One size doesn’t fit all

To put it simply, nearly every company’s employee base is highly individualized, and what motivates one person won’t necessarily motivate another. So, it is better to tailor-fit an incentive program to individual wants and desires. How will you know what your employees desire? Ask them! Distribute surveys, collect data, and then consider a system that can provide multiple reward options to choose from.

One example of a successfully integrated personalized employee rewards program is by the public relations company N6A. Employees can earn points to spend on a variety of rewards on different redemption levels, ranging from cash, to extra PTO, to an employee’s “dream pick”–an incentive reward of their own creation. In an interview with Forbes, N6A CEO Matt Rizzetta stated that the company has seen an incredibly positive response to the new program.

Not every company needs to take personalization to this extent, but it goes to show how an organization can provide a rewards system where all employees can find value.

personalize employee rewards

Personalization encourages workforce insights and diversity

A more personalized employee rewards system provides the perfect opportunity to learn more about your workforce. Companies can determine if different positions or roles at distinct levels within the organization value different rewards. Personalization efforts can even provide valuable insight into a company’s hourly or contingent workforce. Using this knowledge to provide a greater variety of more meaningful rewards will help attract and retain a more diverse workforce, while encouraging desired outputs.

Personalized rewards are inclusive rewards, and diversity means new perspectives, new ideas and innovation. Developing a personalized rewards program has the potential to provide value far beyond the expected bump in the engagement of current employees.

personalize employee rewards

Reward options help employees develop skills

Having separate rewards for different strategic goals gives employees the opportunity to develop specific, relevant skills in order to achieve a desired business goal. To put it into perspective, a salesperson could achieve separate rewards for productivity goals—for example, after a specified number of new leads are contacted—or revenue generation goals, after a specified value of deals is achieved.

Relevant skills like time-management, deeper product knowledge, increased productivity and presentation skills can all result from these specified rewards, making for more highly skilled, well-rounded employees. Their time and effort to improve would be met with tangible rewards, and as a result, the company’s bottom line would improve. A win-win for everyone!

ESG Incentives takes a strategic approach to creating successful rewards programs that achieve profitable results. Contact us for more information on our process, and for best practices in creating more personalized employee rewards.

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