Cost-effective Employee Rewards and Incentive Ideas

Many businesses already know the importance and benefits of effective employee rewards programs, but for those employers who are thinking of dipping their toes into the incentive and reward program pool, a bit of research and planning will be necessary.

To begin, employees are the backbone of every company and providing recognition and rewards for their hard work and accomplishments is just good business strategy. But, it doesn’t have to be financially draining.

According to a 2007 survey by Accountemps, a staffing firm, the most appreciated and effective top non-monetary recognition by both part-timers and full-timer employees was “frequent recognition of accomplishments.” The number 2 slot went to “regular communication.”

Both forms of recognition are extremely cost-effective and help enhance employee morale and loyalty.

Dan Tynan, writing for HRWorld.com, offers “25 Ways to Reward Employees (Without Spending a Dime),” which is based on discussions with management consultants, HR professionals, career coaches, and employers from a variety of industries.

The first on the list, and most rewarding, is offering employees flexible working hours.

President of Alcera Consulting Inc. Richard Martin advised, “Give a little latitude in determining work schedules and to take time for family or personal issues [such as doctor’s appointment].” He added, “As long as the employee is deserving of and doesn’t abuse the privilege, this can go a long way to building trusting and mature relationships with key workers.”

Other cost-effective strategies include: sending a handwritten thank you note; create non-event events to boost morale (a monthly pizza party, or other); reward effort as well as success; and help employees to connect with customers, suppliers, or senior management to pave the road for future career opportunities.

Employees, like everyone else, like to be appreciated for their efforts and work. Providing them with ‘sincere’ cost-effective recognition and rewards will help to foster a happy and loyal staff.