Employee Reward Schemes

Employee reward schemes are structured programs designed to recognize and incentivize employees for their contributions and achievements within an organization. ‍ These schemes play a crucial role in fostering a positive work environment and enhancing overall employee satisfaction and performance.

By offering various forms of rewards—ranging from financial bonuses to non-monetary recognition—companies can motivate their workforce, improve morale, and ultimately drive organizational success.

What is an employee reward scheme?

An employee reward scheme is a structured approach to recognizing staff through financial or non-financial incentives. It encourages consistent performance and builds loyalty.

Can be individual, team-based, or company-wide
Linked to achievements, goals, or values
Covers both short-term and long-term rewards

Why are employee reward schemes important?

Reward schemes reinforce desired behaviors, reduce turnover, and improve morale. They align employee goals with business outcomes.

Increases job satisfaction and motivation
Reduces absenteeism and turnover
Builds a high-performance culture

What are examples of employee reward schemes?

Employee reward schemes examples range from basic recognition to highly customized perks that align with company values and roles.

Spot bonuses and gift vouchers
Extra paid leave or sabbaticals
Peer-to-peer recognition platforms
Experience-based rewards like travel or wellness packages
Public recognition through newsletters or meetings

What’s the difference between employee rewards and recognition schemes?

While both aim to appreciate employees, rewards are usually tangible (bonuses, perks), and recognition is more about appreciation and acknowledgment.

Rewards = tangible (cash, vouchers, gifts)
Recognition = verbal praise, awards, certificates
Best schemes combine both for better impact

Who is involved in employee rewards schemes?

Designing and executing a reward scheme involves leadership, HR, and managers to ensure fairness, alignment, and effectiveness.

HR oversees policy and implementation
Managers nominate or evaluate performance
Employees participate based on eligibility

When should employee reward schemes be implemented?

Reward schemes work best when tied to performance cycles, milestones, or company achievements. Timing adds value and impact.

End of performance review periods
During peak seasons or project completion
On company anniversaries or cultural events

Employee pulse surveys:

These are short surveys that can be sent frequently to check what your employees think about an issue quickly. The survey comprises fewer questions (not more than 10) to get the information quickly. These can be administered at regular intervals (monthly/weekly/quarterly).

One-on-one meetings:

Having periodic, hour-long meetings for an informal chat with every team member is an excellent way to get a true sense of what’s happening with them. Since it is a safe and private conversation, it helps you get better details about an issue.

eNPS:

eNPS (employee Net Promoter score) is one of the simplest yet effective ways to assess your employee's opinion of your company. It includes one intriguing question that gauges loyalty. An example of eNPS questions include: How likely are you to recommend our company to others? Employees respond to the eNPS survey on a scale of 1-10, where 10 denotes they are ‘highly likely’ to recommend the company and 1 signifies they are ‘highly unlikely’ to recommend it.