Employees who are highly engaged are more likely to be more productive and stay with the organisation they work for, reducing overall turnover and the associated costs. Incorporating a reward and recognition programme can help increase employee engagement, resulting in a more positive workplace and employees who are passionate about their work. Individuals who feel appreciated are less likely to feel stress at work and are more likely to be resilient when facing challenges. In this article, we discuss why it’s important to reward team members and list 14 ways to reward employees and motivate teams.

Using incentives to reward employees for their work is essential because this can leverage human behaviour to benefit the company. Immediate reward for a job well done tends to increase intrinsic motivation by linking an activity to a goal, so employees are more motivated to complete successive tasks. Businesses that use employee reward programmes tend to achieve their goals quicker. Some reasons you might introduce this type of programme where you work include:

increasing employee morale and motivation

showing appreciation for outstanding performance

improving productivity

encouraging friendly competition

improving employee retention

creating a positive workspace

Some creative ideas you can use to reward team members in your workplace include:

Sometimes a simple thank you or compliment can improve someone’s day. This is especially important for hybrid or virtual teams where large distances separate team members. Such moments of recognition and gratitude can make them feel more connected. Employee recognition also allows companies to reference organisational values such as creativity, teamwork, agility, accountability or passion so they can promote positive behaviours that match their vision. Organisations with cultures aligned with their values tend to have happier employees, giving them a better competitive advantage.

On average, individuals spend a large portion of their adult life at work. Because of this, personalised employee perks have become more important. Offering experiences such as kayaking trips, spa retreats, sports car events or luxury staycations can encourage employees to perform well. It also shows that companies value people as individuals and recognise their achievements.

A wellness program is designed to maintain or improve employee well-being through exercise, stress management and diet. They can include programs like yoga classes, on-site fitness centres or massage therapy and can benefit the employee by raising employee morale and building camaraderie amongst the team. These programs can result in measurable savings for the organisation regarding reduced healthcare costs and can even help to attract new talent.

With flexible working and work-from-home models becoming more popular, employees often want a home office space that’s comfortable and easy to work in. This means setting aside a budget to provide them with a suitable office chair, laptop, phone and other accessories that help them stay productive. By paying for work-from-home expenses, remote employees can feel more valued, which improves employee engagement and retention. It can also ensures employees have sufficient resources to complete their tasks properly.

Employees may be more loyal to a company that offers valuable private health insurance benefits, as they can be very costly to pay for themselves. Across the nation, company-sponsored private health insurance allows a hospital to treat you as a private patient and enjoy health services that Medicare doesn’t cover, such as private dentistry and physiotherapy. It provides a sense of security to employees that the company they work for provides this health coverage for them and their families, which can boost employee satisfaction and reduce absenteeism.

Additional paid time off is one of the most common employee rewards. As of November 2021, the Fair Work Ombudsman National Employment Standards states employees are entitled to 4 weeks’ paid annual leave. Some employers may offer additional days to show recognition for good work or to celebrate a big achievement. For example, an employee may complete a project that exceeded expectations. A manager may offer that employee a paid day off in acknowledgement of that achievement.

Company-provided lunches can be beneficial to both the employee and the organisation. It’s not only a nice perk but also shows that the company cares about its people and that it appreciates their daily efforts. Eating together is also a great way to create strong social bonds in any group and allows them to make connections outside their teams and departments.

Company-sponsored event tickets are popular among corporate employees for team building. Many employees who spend much of their day in the office can benefit from a relaxing night out. Also, meeting with people from other teams and management in an informal setting can diminish the gap between teams and allow management to connect with employees. And these bonds made at company events can transfer back to the office, leading to a more cohesive work environment.

Team retreats are especially important for virtual teams that struggle to feel connected and be a part of the bigger picture. When planning a team retreat, think of what you want to accomplish, then plan around this goal. Some options include the following:

volunteer retreat

cooking class retreat

Earth Day retreat

nature retreat

scavenger hunt

Personalised fitness classes and boot camps give employees performance incentives to excel and promote a healthy lifestyle for the business. Taking part in a company-sponsored fitness class, especially during office hours, can let employees recharge and reset so that they can tackle the next task more effectively. Perks like yoga classes, 1–1 fitness classes, group boot camps or gym membership reimbursements benefit employees by taking care of their physical health. Healthy employees can lead to healthy profits.

Peer-to-peer recognition occurs when employees recognise fellow employees for a job well done. This promotes open communication and appreciation between team members and gives all employees the autonomy and platform to recognise each other at any given time. Some other benefits of peer-to-peer recognition in the workplace include:

It boosts team morale.

It fosters a connection between and within teams and improves employee relationships.

It improves employee productivity and job satisfaction.

It encourages inclusivity in the workplace.

It decreases employee turnover.

After you’ve hired new talent, reward them for getting the job by taking them out for lunch. Start their employment with an onboarding lunch with the team so existing team members can meet their new colleagues in an informal setting. Your new hire can feel valued and engaged and your team’s employee retention rates may also benefit. Building better team rapport may lead to a stronger company culture, which can help both you and the organisation.

On your next holiday or work trip, find some local treats that you can bring back for your team. It’s a way for you to show your appreciation and thank them for picking up your workload while you were away. If your team is remote, you could send them a $10 eftpos while you’re at the airport with a message saying, Thank you for your work. Here’s a coffee on me. Your team is likely to appreciate the offer.

Long-time employees often think about potential career moves at their five-, 10- or 15-year anniversaries, and one of their considerations is how much the organisation they work for values them. This is the best time to remind them how much the company appreciates them, praising them for their accomplishments and contributions. You can even award them early leave on the day or add on any potential perks you see fit. It can make them feel valued and less likely to look elsewhere for a job.