Considerations When Automating Employee Rewards Programs Through HR Software

Employee reward programs are a powerful tool for boosting employee engagement, retention, morale and satisfaction. But, like many HR responsibilities, running a rewards and recognition program is often bogged down by tedious processes and manual tasks. 

It doesn’t have to be like that, though. HR technology and automation can streamline programs and processes for everything from payroll to benefits. When it comes to rewards administration, the time savings and improved user experience are significant for everyone involved. 

For one, a bad HR tech experience is detrimental to every part of program administration. A laundry list of manual tasks creates unnecessary stress for the HR team, pulling time and energy away from other more strategic to-dos, and can lead to burnout. 

Plus, reward program inefficiencies negatively impact the end-user employees, too. In fact, according to a report by Topia, 58% of employees say they spend more time than they should completing HR-related tasks. About one in three employees say they’d rather go to the dentist, do the dishes, wait on hold or sit in traffic than complete HR tasks. Imagine those negative feelings around receiving rewards and recognition – it’s the complete opposite effect than intended!

Streamlining employee rewards programs through HR software makes these programs much easier to run and participate in, ensuring that the rewards are distributed fairly, consistently and in a timely manner – all while providing a more positive experience for everyone involved.

Automating Employee Rewards Programs With HR Software

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– Personalization and Customization –

Personalization is at the core of any successful employee rewards program. It’s just human nature – people feel more valued and motivated when the reward is tailored to their individual preferences. Plus, it feels more authentic and genuine.

HR software allows organizations to personalize incentive programs with points-based rewards so employees can select a reward of their choice. And there are many different types of rewards to choose from!

  • Monetary rewards like cash bonuses, gift cards or other financial incentives. 
  • Non-monetary, experiential rewards like extra paid time off, travel opportunities, event tickets or other special experiences. 
  • Tangible rewards and gifts from custom merchandise to tech to branded items.

Personalizing employee recognition programs isn’t just about offering a range of rewards. It’s also important to tie the recognition to individual or team performance metrics.

For instance, this can be achievement-based, like recognizing employees for meeting a specific goal. Or it could be behavioral recognition, such as rewarding employees who exemplify company values like leadership or innovation.

Automation helps with the administration of these personalized, customized rewards while also providing data that can be used to identify what kinds of rewards resonate most with the organization’s employee base. 

 

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– Streamlined Processes –

HR platforms, supported by AI and other innovative technology, alleviate the burden of tedious work by streamlining processes and automating manual tasks.

For example, this can include automating the process of recognizing service awards and other milestones – no need to remember each employee’s anniversary and manually organize recognition. A digital recognition platform can also make peer-to-peer recognition easy by providing a seamless way to send messages or nominate colleagues for rewards.

There are five areas in particular that automation can streamline reward program processes:

  1. Communication, including nominations and approvals
  2. Collaboration and team-based recognition
  3. Distribution of rewards
  4. Feedback from employees
  5. Engagement with the program

We’ll dig further into these different areas that automation supports, but it’s worth noting the ability of automated workflows to reduce the time and effort required to run a rewards program.

 

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– Integration With Performance Metrics –

One of the advantages of HR software for a recognition program is the ability to integrate with other tools and pull data from a variety of areas, directly connecting recognition initiatives with individual, team or company-wide performance metrics.

For one, this makes it easier to identify high achievers and make sure they are recognized accordingly for their achievements. It also maintains transparency in the rewards process by providing clear, data-driven criteria for rewards, which helps foster trust and motivation among employees.

Make sure to regularly review and update the automated rewards criteria to make sure they remain aligned with business goals and employee expectations.  

Key Features of HR Software for Automating Rewards Programs

When considering an HR software solution to automate employee rewards and recognition programs, there are a few key features to evaluate.

In particular, it’s important to look for an all-in-one solution like the Inspirus Connects platform that integrates employee rewards, recognition and feedback into one comprehensive solution.

Here are additional features that support the rewards program to drive employee engagement and satisfaction.  

    Automation

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    Automated Tracking and Reporting

    Tracking and reporting are critical to both maintain the accuracy and efficiency of the program, while also identifying any opportunities for improvement. Without reports, it’s hard to show the return on investment of the program. HR technology automates reporting with:

    • Real-time dashboards
    • Accurate record keeping
    • Comprehensive, auto-generated reports 

    Recognition

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    Real-Time Recognition

    Recognition should be timely, otherwise, it may seem like an afterthought and less sincere. Immediate positive feedback, on the other hand, boosts morale and motivation by creating a direct link between the achievement or desired behavior and the reward. 

    Offering real-time recognition can include sending the recipient a private digital message, shout-out or points that can be redeemed for rewards instantly. Or it might involve sharing achievements publicly on social feeds or through company-wide announcements, reinforcing those positive behaviors for all. 

    Whatever form of recognition is the best fit for the situation, real-time recognition woven into the daily operations creates a continuous culture of appreciation that’s incredibly powerful.

    Rewards

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    Customizable Reward Options

    We mentioned the importance of personalized, customized recognition previously but let’s take a closer look at how a platform like Inspirus Connects allows organizations to tailor rewards to employees’ individual preferences.

    A flexible, points-based reward system means that managers and program administrators choose how and when to offer rewards according to budgets and other criteria – while the employee has the freedom to choose the gift of their voice.

    Employees can accumulate reward points for accomplishments, service anniversaries, birthdays or any other occasion. Those points are then redeemable for a wide range of gifts in a rewards catalog that includes everything from branded merchandise to experiences to charitable giving – meaning there truly is something for everyone!

    Gamification

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    Gamification

    Gamification adds a layer of fun and excitement to a rewards program, making the experience much more engaging. For example, friendly competition and interactive elements are great motivators to encourage employees to strive for excellence – and get rewarded for meeting those standards.

    What does this look like in practice? As one example, fast food chain White Castle, with support from Inspirus, turned rewards into a fun competition that boosted employee engagement by 78%. The organization's R.O.C.K. (Royal Order of Crave Keepers) the Castle Games awards team members points based on their performance in eleven categories (like accuracy, friendliness, customer satisfaction and safety). Those points can then be redeemed for gifts and other rewards.

    Integration

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    Integration With Payroll and Benefits

    Integration between the recognition system and other HR tools makes the distribution of rewards that much more seamless, reducing the administrative burden of running the program.

    For instance, automated payroll updates apply monetary rewards, such as bonuses, to the employee’s payroll. Benefits integration can also link rewards with other benefits administration, like paid time off. 

    Feedback

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    Employee Feedback and Surveys

    Feedback is an essential part of any rewards program – it’s the only way to truly know what’s working and continuously improve the employee experience. With Inspirus Connects, regularly collecting and analyzing feedback is simple.

    • Real-time feedback: Employees can share their thoughts instantly, allowing the HR team and managers to promptly address any issues. This immediate feedback loop is critical for creating a responsive, positive work environment.
    • Anonymous feedback options: Allowing employees to share their thoughts anonymously can lead to more honest and constructive input. Sometimes, the fear of repercussions needs to be removed to encourage employees to share their true feelings which, in turn, leads to deeper and more actionable insights.
    • Pre-built, neuroscience-based surveys: In partnership with The Happiness Index, a series of ready-to-go surveys help assess your organization’s cultural health by measuring how employees think, feel and behave in a variety of ways. 

    Analytics

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    Analytics and Insights

    Data is only as good as how you use it. Take feedback from the above point, for example. With Inspirus Connects, you don’t just get a way to solicit feedback – dashboards provide easy access to analytics and insights that help spotlight trends and areas for improvement.

    Detailed analytics dashboards make it possible to link employee performance and other business outcomes to the rewards program, allowing you to measure the return on investment and adjust strategies as needed. Plus, customized reporting provides insights tailored to your goals and KPIs to support continuous growth with data-driven adjustments. 

    Communication

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    Automated Communications

    Automate communication regarding the rewards program to make sure employees are always informed and up-to-date, which has the added benefit of improving transparency about how and when recognition is given.

    For example, automated email notifications keep employees in the loop about their rewards and any program updates, while personalized digital communication makes it easy to share a celebratory message with peers. Likewise, notifications can inform HR leaders or the employee’s manager about any important upcoming dates that should be recognized, like a birthday or service anniversary to make sure the moment is not missed.

    Usability

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    Ease of Use

    A platform like Inspirus that’s easy to use means that employees will actually use it! This is mission-critical. You can have the best rewards program but, if no one is participating, it will fall flat.  

    Improve the overall employee rewards experience with an intuitive interface that makes the program easy to implement for HR teams and simple for employees to use. 

    Social

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    Social Recognition

    Social recognition taps into a powerful motivator: the influence of peers and colleagues. Recognizing and rewarding employees publicly, like through an organization-wide communication channel or a spotlight area (either digital or physical) helps foster a company culture of appreciation and amplify the recognition efforts. 

    Benefits of Automating Employee Rewards Programs

    Automating employee rewards programs through HR software brings a multitude of advantages compared to manually running such a program – or worse, not prioritizing recognition at all. But it’s a challenge many organizations still face despite the growth in technology options.

    HR Research, for instance, found that enhancing the employee experience through technology is the top priority for the majority of HR professionals, but less than half of organizations currently have tools specifically designed for this purpose.

    The benefits of a comprehensive employee rewards program that leverages automation include:

    Increased Efficiency

    Streamlining rewards processes saves time and allows you to focus on other more strategic initiatives that engage employees.

    Improved Accuracy

    Automation ensures that the rewards are distributed fairly and accurately, reducing the risk of human error.


    Enhanced Employee Experience

    Real-time recognition and personalized incentive programs reward employees on the spot, which is a huge plus for increasing engagement and improving the overall experience.

    Data-driven Decision-making

    Data and analytics allow you to optimize the program based on results and be strategic in making sure employees feel valued.

    Scalability

    A manually run program can only grow so much before the administrative burden becomes too high. With automation and HR technology, you can scale your rewards program as the company grows – even with geographically dispersed employees or a hybrid workforce.

    The HR Tech You Need for an Effective Employee Rewards Program

    A well-executed, authentic employee rewards program is essential for maintaining high levels of employee engagement, satisfaction and retention. By automating your rewards program, you save time and resources to dedicate to other areas while offering a better employee experience. It’s a win, win, win for all.

    Ready to shift employee engagement into another gear? Get in touch with us today to learn how the Inspirus platform can help you build a happier, more productive workforce.