Employee recognition is one way to show appreciation for the hard work, commitment and dedication of a company’s employees.
One popular way to reward excellence is with digital rewards.
Digital rewards are an effective way to motivate and recognize employees for their contributions without spending too much money or time.
Digital rewards can be given in a variety of forms ranging from gift cards, vouchers, points programs, virtual currency, and more.
This article will discuss the benefits of using digital employee rewards for employee recognition, ways to implement them into your organization’s recognition program and how they compare against traditional methods of rewarding employees.
Benefits Of Digital Rewards For Employee Recognition
Digital rewards offer many advantages over traditional methods when it comes to employee recognition.
- Reward Flexibility – A great benefit of digital rewards lies in their flexibility; companies have a wide range of options available when it comes to choosing the type they want. From gift cards and vouchers that allow employees access to online stores to more creative options such as virtual currency, points programs and team competitions. This means employees can be rewarded for a wider range of achievements than with traditional methods such as cash bonuses or gift certificates.
- Cost Savings – Digital employee rewards are also often much cheaper than their physical counterparts, which results in a significant cost savings for the company. This is especially beneficial if a large workforce is involved or if reward frequency needs to increase due to employee turnover or success in reaching set goals. This ease of customization also makes it easier for the company to determine which rewards employees value most.
- Improved Employee Engagement – Employee engagement is also improved by digital rewards, as companies are able to provide a range of different options for employees to choose from. This means companies can reward employees in a way that meets their needs, even if it involves giving them something they don’t or can’t typically use.
- Interactive – Digital employee rewards also have the advantage of being very interactive for employees. For example, companies can reward employees for achieving goals or reaching milestones and then allow them to receive additional recognition through an online badge within the system. This also allows companies to easily track employee progress within a program and offer them access to any special bonuses that may be available.
- Improved Feedback – Another benefit of digital rewards is that they allow an easy way to provide feedback on individual employee performance, which helps build more effective relationships with the entire workforce. By personalizing the type of recognition provided, companies are able to reward their employees in a way that will motivate them while also providing value to management and employees alike.
Employee Recognition Options
When companies choose to implement employee recognition programs they must consider the needs of their workforce and what types of rewards they want to offer.
One popular method of rewarding employee performance is through cash bonuses.
Cash bonuses are often considered one of the best forms of rewards because employees are able to use them any way they wish, such as for a personal purchase or towards savings for future use.
However, cash bonuses have some drawbacks that mean companies should only choose this option if other options do not fit their needs.
Cash becomes a Reward
If cash is given as a reward then it takes away from the actual value the employee may be experiencing from what they have accomplished.
For example, the employee may be motivated to perform better because they love the recognition they receive from their peers, not because they are being rewarded with cash.
Employees may even feel that their hard work is unappreciated.
Value of Cash Varies
Another disadvantage to cash rewards is that the cost of the reward varies depending on the type of reward being given.
While this is not a problem if only one or two employees are being rewarded, it can be costly if it needs to be used for a large workforce or on a regular basis as part of an ongoing employee recognition program.
This can lead to employees feeling as if management does not value their efforts and only wants to spend its budget for cheap ways of motivating its workforce.