Certain employee rewards significantly more impactful, research shows
A new study finds that companies that invest in employee experience (EX) cultivate stronger employee/employer relationships and see significantly higher engagement.
For example, companies that prioritize EX outperform so-called laggards across key employee experience indicators by more than 20%. The four areas cited in the study are:
- my employment status is stable;
- my relationship with my employer is reciprocal, not transactional;
- my work is fulfilling;
- and I am optimistic about my career prospects
The ways in which organizations can support employee experience and boost these indicators vary greatly; however, strategic employee rewards and recognition presents a key approach for employers looking to positively impact the employee experience.
“For leaders looking to motivate high performance and boost employee morale, experiential rewards present a major opportunity. The research shows they have 3.8x more impact on the employee experience than any other type of reward, including cash and gift cards,” says Kevin Yip, co-founder and president at Blueboard.
“When companies reward with experiences, they’re investing in employees being able to thrive—in and out of the workplace. They’re rewarding people with the gift of time, with something that’s truly personalized, and with an experience that drives personal growth.”
Employees can use these rewards to indulge in a passion, learn a new skill, or challenge their comfort zones—it’s these experiences that make us who we are,” he says. “As an employer, if you can have a hand in creating that opportunity, you’ll drive loyalty and performance in ways you’ve never seen before.”
The report also states that Experience Leaders are more likely to offer rewards that
are personalized and intentional, like experiences, as opposed to low personalization rewards, like food and consumer goods. This is likely because the most effective employee rewards express effort and purpose on the part of the giver and evoke meaning, surprise, and delight on the part of the recipient.
It’s important, the report notes, that a consistent, multi-dimensional employee rewards and recognition program be part of an organization’s strategy. Having a program with peer-to-peer appreciation, informal employee recognition, and formal employee recognition can have the most impact in terms of high performance and creating behaviours that grow a business.