Employee Incentive Ideas to Engage Your Team
A satisfied and engaged workforce is one of the most powerful assets that a company can have. It can be easy to get lost in the finer details of your organisation’s performance, but nothing boosts overall success like happy employees who feel rewarded and recognised for their work.
While we know this to be the case, many employers across the UK are failing to see the value of comprehensive employee incentive programmes. A survey of 1,000 UK employees found that 43% of employers do not have a rewards or recognition scheme in place, while 80% of workers cited that they feel more valued in a workplace which awards performance incentives.
In this article, we’re sharing 5 employee incentive ideas that are guaranteed to increase motivation and engagement across your business.
Get in touch to learn more about how Red Letter Days Corporate can help keep your employees satisfied with meaningful workplace rewards.
What Are Employee Incentives?
Employee incentives are benefits, bonuses or non-financial perks awarded to staff members on top of their annual salary. They can include everything from pay rises and other monetary rewards to non-financial incentives which cater to individual employee interests.
Incentives are usually awarded to employees who excel in satisfying company targets or display an outstanding level of individual performance. At a broader level, incentives can be awarded in the form of organisational profit sharing like sales commission and share incentive plans.
Why Incentives are Important for Employees & Employers
Employee incentive programmes give high-performing team members a chance to be rewarded for their contribution on an individual basis, while providing a clear framework of targets and goals for your organisation at large. They provide a catalyst for motivation and engagement that’s proven to promote meaningful satisfaction and loyalty in the long run.
Aside from encouraging employees to improve their performance, employee incentives have a proven track record of maximising success at the organisational level. Up to 90% of the world’s top-performing companies use employee rewards to stimulate their workforce1, while the implementation of performance incentives has been shown to decrease employee dissatisfaction by as much as 28%2.
Financial vs Non-Financial Employee Incentives
While the implementation of any employee incentive scheme is better than having none at all, modern research has provided valuable insights into how employees respond to various types of workplace rewards.
Financial incentives generally come in the form of asset or cash rewards - like pay bonuses, sales commission or salary increases - and seek to improve employee performance through direct monetary payment. While undoubtedly effective, financial incentives may not provide the most effective method of rewarding and motivating employees. Research has shown that 63% of the UK’s top-performing companies observe higher levels of workplace productivity when implementing non-financial employee incentives.3
5 Employee Incentive Ideas to Maximise Staff Motivation
We know that maintaining optimum levels of employee satisfaction and motivation across your organisation is a multifaceted process. However, the execution of some specific employee incentive ideas can go a long way in ensuring your workforce feels satisfied, motivated and encouraged to enhance its performance.
From financial rewards to meaningful staff experiences - here are some of the most effective employee incentive examples for motivating your workforce and boosting top-level performance.
1. Pay Increases
While certainly not a new idea, pay increases have consistently proven to be an integral part of employee incentive programmes. New research has shown that 62% of UK employees prefer regular pay increases over annual bonus schemes, as they provide greater flexibility in making ends meet throughout the year.
It’s important to ensure that pay increases are administered on a fair and regular basis in line with clearly-defined criteria. Conducting regular market research will enable you to understand what your employees are expecting, while revealing the salary incentives being offered by your competitors.2. Health and Wellbeing Resources
We’ve already seen the significant value that employees gain from non-financial incentives, and few are more important to overall company performance than health and wellbeing resources. Recent research has revealed that a startling 92% of UK employees have experienced the effects of stress and burnout, highlighting a significant shortfall in workplace wellbeing.
An effective health and wellbeing strategy in today’s professional landscape needs to go beyond just physical health. A holistic approach is always optimal - catering to employee’s emotional, social and financial needs while ensuring that all benefits are accessible to everyone.
3. Personalised Employee Experiences
When it comes to keeping your staff satisfied and engaged, the effectiveness of personalised rewards is hard to overstate. Studies show that 77% of employees admit that their output would improve if they felt more appreciated at work4, and what better way to make your top-performers feel valued than with bespoke employee experiences?
Individualised experiences allow you to reward employee excellence while engaging with individuals’ personalities and interests. Whether it’s a pampering experience to help your hardest workers unwind or an exhilarating adventure day for the office thrillseeker - personalised rewards offer the ultimate way of ensuring your employees feel personally appreciated.
4. Flexibility and Work-Life Balance
We all know that the conversation around workplace flexibility has shifted massively in recent years, but many employers are failing to understand its importance in maintaining healthy levels of employee satisfaction. According to research conducted in 2023, 50% of all employees who left their jobs in 2022 cited a lack of work-life balance as their main reason for moving on.
While telecommuting and flexible working arrangements aren’t a feasible option for every business, there are plenty of alternatives that will promote a positive work-life balance among employees. The introduction of subsidised gym memberships, flexible holidays and designated wellness days are all great ways to help your staff disconnect from the pressures of their day-to-day work.5. Gifts
Striking the perfect balance between financial and non-financial performance incentives, gifts are a great way to inexpensively treat staff members while maintaining a personal touch. Employees have made it clear that they prefer meaningful, individualised gifts over standard monetary incentives, and catering gifts to specific excellent performers provides a great way of showcasing your appreciation.
Employee gifts can include anything from experiences to personalised vouchers. The most important thing to remember is that gifts should cater to the interests of their recipients in order to maintain a sense of meaning and authenticity. If a long-serving or well-performing employee has a birthday coming up, consider rewarding them with a personalised gift to celebrate their special occasion.
Boost Engagement With Red Letter Days’ Meaningful Employee Incentives
From providing traditional monetary rewards to getting creative with personalised gifts - there are endless possibilities for engaging your team with employee incentive ideas. However, knowing where to start and which incentives are best suited to your staff can be difficult.
Our employee experience and loyalty programmes provide the perfect framework for showing appreciation to your staff in an authentic and impactful way. Whether you’re looking to honour a senior staff member with a long-service award, or celebrate the success of an excellent performer with a personalised experience package - we offer meaningful incentives to ensure that your staff feels satisfied on a long-term basis.
Get in touch today to find out more about how Red Letter Days Corporate can support and enhance your company’s employee incentive programme.
2.Greatify, 2019
3.Small Business, 2017
4.HawkIncentives, 2015