An employee reward is no doubt a dominant factor in employee retention, engagement, and inspiration. Companies that successfully execute employee recognition programs benefit from greater retention and greater profit margins.

Here are a few ways to help you better understand employee reward programs:

Take into account the Culture

An effective employee recognition program completely aligns with the way the employees work, their imagination and what holds value for them. But for complete buy-in and integration, programs must also highlight the overall company culture and the company’s business values.

Identify the Problem at Hand

Don’t start an employee recognition program out of anxiety just because you feel that the performance of your team is below average, it might not motivate the employees but instead make them feel uneasy. Why? Because it might point out areas, where the employees feel their skillsets or tools fall short for allowing them to meet the program’s standards. Instead, work with them to design the program based on what’s going to motivate the team.

Make the Employees Realize its Value

Rewards excite employee engagement and performance by creating value for everyday tasks. For the employee reward program to be successful, everything associated with it — the objectives, reward offerings, and program support must communicate to the employees that the reward program is truly valuable and worth the time and effort they’ll put in to reach the rewards the program provides.

Engage Management

Employee recognition programs are at risk of being viewed as a “mess” among leadership. Bringing managers on board by making them realize that the employee recognition program isn’t just an expense, but instead an investment that will help the business’ productivity. The employee reward program can become an essential part of the infrastructure and with the support of management, the employee recognition program has a high chance of success and value.

Keep it Simple, Realistic, and Short-Term

Ensure that your employee reward program has definite rules which are clearly communicated, without any confusion. Be very open about the criteria for earning rewards. To maintain interest among the participants, it is better to set achievable goals that can be attained within a relatively shorter time frame. Make it feasible to accumulate points on a monthly or quarterly basis. In addition to that, present a variety of rewards at lower and higher point values. This helps employees enjoy the results more rather than waiting for them.

Constantly Assess and Improve

Most employee reward programs run on technology platforms to make it easy for the program managers. They also produce surplus data and insights related to the program. Another approach to determining the effectiveness of the program is through surveys for the employees to know the feedback. Conduct separate surveys for the managers to see if they are able to see any changes in their workforce.