Keeping employees motivated is as essential as ever, but it’s also becoming a more challenging task for managers and HR as relationships between employees and workplaces evolve. Thoughtful employee incentive ideas can pay dividends, fueling employee engagement and boosting morale over both the short- and long-term.
Only one-third of employees are actively engaged at work according to Gallup, and roughly half are looking for a different job. Combine that with record levels of stress in the workplace – with one in two employees saying they experienced a lot of stress the previous day – and retaining talent can’t be an afterthought.
Today's workforce craves more than just a paycheck: employees seek acknowledgment, appreciation, opportunities for growth and work-life balance. That’s why effective employee incentive programs can be so powerful. These types of perks are not merely transactional – they are investments in human capital that drive organizational success.
A one-size-fits-all approach doesn’t work, though. To truly resonate with employees, incentives must be tailored to their individual needs, preferences and aspirations. Read on for employee incentive program ideas that can elevate morale and transform workplace dynamics.
Employee Incentive Program Ideas
Monetary Incentives for Employees
While monetary rewards are far from the only type of incentive that motivates, financial compensation has long been a staple to encourage employees to perform at their best.
There are a variety of ways to reward employees with monetary incentives:
- Bonuses
- Commissions
- Raises
- Stock Options
- Profit Sharing
- Gift Cards
- Allowances
- Discounts
- Tuition Reimbursement
These types of cash-like incentives are effective ways to reward exceptional achievements and encourage a culture of excellence. By tying financial rewards directly to individual or team performance metrics, employees are encouraged to strive for higher goals and deliver exceptional results consistently. High performance is well worth the effort!
HELPFUL TIP:
If you are offering an employee a gift or other tangible reward, allow them the freedom to select an item of their own choice. A platform like Inspirus Connects Plus allows managers to give employees reward points which can then be redeemed for a wide range of rewards including merchandise, gift cards, experience and charitable giving.
Non-Monetary Incentives
It’s important to note that money alone won’t solve a workplace engagement problem.
To be truly effective, any incentive has to go hand-in-hand with a genuine show of appreciation from management. In fact, research from O.C. Tanner found that more than a third of employees consider recognition to be the most important method of support – even over pay increases and promotions.
That leads us to non-monetary incentives. These encompass a variety of perks that go beyond financial compensation but still hold significant value for employees. There are almost endless examples of employee incentive programs that go beyond cash, but some of the most popular options are:
- Flexible work arrangements
- Professional development opportunities
- Additional time off
- Experiential rewards
- Mentorship programs
- Team retreats
- Company lunches and events
- Extra leave
- Development days
- Recognition programs, such as Employee of the Month
Unlike more tangible forms of compensation, non-monetary incentives tap into employees’ intrinsic motivations and psychological needs, fostering a sense of appreciation and fulfillment. This can play a crucial role in shaping organizational culture and fostering employee motivation and loyalty.
HELPFUL TIP:
Look to your calendar for creative, free ways to support employees. Consider adding No-Meeting Days (a day blocked off for deep work) to allow employees to knock items off their to-do lists and focus on long-term projects without interruption. If possible, offer Half-Day Fridays to give employees a few hours to focus on personal goals.
Health and Wellness Incentives
Health and Wellness Employee Incentive Ideas
Corporate programs focused on employee health and wellness are becoming increasingly popular. The corporate wellness market was valued at an estimated $61 billion in 2023 according to Fortune Business Insights, and is expected to rise to $85 billion by 2030. Suffice it to say that investments in workplace wellness solutions are on the rise across the board.
What exactly is an employee health and wellness incentive? In short, organizations are increasingly recognizing the importance of holistic well-being and are in response offering different ways of supporting employees' physical and mental health. These programs prioritize various aspects of health, including physical fitness, mental health, nutrition and stress management.
Here are ways that companies are helping employees lead healthy and balanced lifestyles across a variety of wellness categories.
Physical Fitness
- Gym membership reimbursements
- Fitness program subscriptions
- On-site fitness classes (like yoga, pilates or CrossFit)
- Walking or running clubs
- Intramural sports (like flag football, frisbee, golf or pickleball)
- Fitness challenges (such step count challenges or activity tracking challenges)
- Biometric screenings
Mental Health Support
- Counseling sessions
- Meditation classes
- Employee Assistance Programs (EAPs)
- Mindfulness training apps or resources
Nutrition
- Free on-site healthy snack options
- Nutrition workshops or lunch-and-learns
- On-site farmers' markets or CSA (Community Supported Agriculture) programs
- Healthy recipe sharing platforms
- Nutritional counseling services
Stress Management
- Stress reduction workshops
- Mental health days
- Flexible work hours
- Quiet rooms or meditation spaces in the workplace
- Employee resilience training programs
These types of initiatives that support the employee as a whole not only contribute to improved morale, engagement and productivity, but also lead to greater overall employee satisfaction and retention within the workforce.
HELPFUL TIP:
One way that organizations, particularly remote or hybrid ones, are approaching health and wellness employee incentives is with a Lifestyle Spending Account (LSA). Similar to a Health Spending Account (HSA), this type of account gives employees funds to use expenses that aren't covered by traditional benefits, but still support overall health.
Team-Building Incentives
Employee incentives don’t have to be individual. In fact, team-focused incentive programs can be a great way to foster stronger relationships between colleagues and departments.
One popular team-building incentive is organizing team outings or retreats, where employees can participate in fun and engaging activities, workshops and bonding exercises. These retreats offer a break from the routine and create opportunities for team members to get to know each other on a personal level, building trust and camaraderie that translates into improved teamwork and productivity back in the workplace.
Company-sponsored sports leagues or fitness challenges provide employees with opportunities to engage in physical activity and teamwork outside of work hours, the proverbial two-birds-with-one-stone solution. Whether it's participating in intramural sports, organizing fitness challenges or sponsoring other team-building activities, these initiatives promote a healthy lifestyle while fostering team spirit and collaboration.
HELPFUL TIP:
When planning team-building activities, make sure to take into account the preferences and interests of all team members to ensure maximum participation and engagement. Also, provide opportunities for feedback after each activity to identify areas for improvement in future initiatives.
Other Employee Perks That Can Incentivize
While it’s important to have a formalized employee incentive program and strategic plan in place, one-off perks can also be an effective way to boost employee morale and job satisfaction.
These perks should be aimed at creating a supportive and enjoyable work environment where employees feel valued and appreciated. Here are some ideas for employee incentives that go beyond traditional compensation packages.
Concierge Services
Corporate concierge services are transforming the workplace environment, making it easier than ever for employees to be productive and achieve work-life balance. Offering a range of range of personalized assistance for employees makes their workloads more manageable and elevates their overall experience. This can include anything from personalized greeting and check-in services for the “hotelification” of workspaces to customized amenities.
Discount Programs
Providing discount programs for employees on company products or services, as well as partnering with external vendors for exclusive discounts, adds real value to employees' lives. These programs allow employees to enjoy savings on everyday purchases, from groceries and retail items to travel and entertainment.
Plus, by leveraging the purchasing power of the organization, employees benefit from discounted rates that they may not have access to otherwise which can help increase employee loyalty and satisfaction.
On-Site Amenities
Particularly as organizations aim to entice employees back to the office, on-site amenities have become more popular.
Free snacks, gourmet coffee, catered meals, on-site childcare and recreational facilities contribute to a positive work environment and enhance employee well-being. These amenities provide convenience and comfort for employees, allowing them to refuel and recharge during the workday without having to leave the premises.
Investing in on-site amenities can provide a huge boost for hiring and retaining employees. Just look at some of the big tech companies like Alphabet, Meta, Salesforce and Adobe that boost amenities like state-of-the-art recreational facilities, “nap pods”, professional chefs and more.
Transportation Benefits
Transportation benefits can include subsidizing public transportation costs, offering parking discounts or providing commuter benefits like bike racks or shuttle services to help overcome some of the challenges of physically heading back to the office.
Plus, supporting alternative modes of transportation help contribute to reducing traffic congestion, improving local air quality and promoting employee well-being.
Technology and Home Office Allowances
Providing employees with access to the latest technology tools and resources is essential for maintaining productivity and ensuring seamless collaboration, particularly for hybrid or remote workers.
While it’s standard practice to provide the computers and other tools needed for their work, a technology or home office allowance can allow employees to upgrade anything else they may need to be more productive — like a second computer monitor, a faster internet connection or more ergonomic accessories.
This type of support not only demonstrates a commitment to supporting employees' success regardless of their work arrangement, but it also can also improve performance and productivity. A win-win for the employee and employer alike!
Social Recognition as an Incentive
Don’t overlook the power of social recognition as a motivator and morale booster.
What is social recognition? It’s the practice of acknowledging and appreciating employees' and peers’ contributions and achievements. Unlike traditional top-down recognition programs, social recognition empowers employees at all levels to express appreciation, fostering a culture of appreciation, camaraderie and mutual support.
Using an employee recognition platform like Inspirus Connects makes it easy to create a thriving work environment where employees and managers can show appreciation with messages, gifts and other rewards online.
Peer-to-Peer Recognition
Encouraging employees to recognize their peers for outstanding contributions is a cornerstone of social recognition initiatives. Peer-to-peer recognition programs empower employees to acknowledge and appreciate the efforts, achievements and positive behaviors of their colleagues in real-time. Whether it's a simple thank-you message, a shout-out in team meetings or a nomination for a peer-recognition award, these gestures of appreciation have a profound impact on morale and motivation. Peer-to-peer recognition not only strengthens relationships and trust among team members, but it reinforces desired behaviors and cultural values within the organization.
Social Media Recognition
Highlighting employee achievements on company social media channels – or an internal company communication channel – is an impactful way to showcase appreciation and recognition to a wider audience than just the recipient.
Leverage the reach and influence of social communication channels to help create a culture of recognition and appreciation that resonates both internally and externally.
Employee Appreciation Events
Organizing gatherings or celebrations to honor employee milestones is a long-standing tradition. It truly does strengthen bonds and foster a culture of appreciation within organizations.
These events serve as invaluable opportunities to recognize the hard work and dedication of employees and to celebrate their achievements collectively. Whether it's a quarterly luncheon, an annual awards ceremony, an official Employee Appreciation Day (first Friday in March!) event or a team-building retreat, employee appreciation events create a sense of camaraderie and unity among colleagues.
Putting Ideas into Practice
The benefits of employee incentive programs and perks are wide-reaching, touching everything from employee retention rates to engagement and happiness. Recognizing and rewarding employees for their contributions and achievements is an important part of creating a positive work environment where employees feel valued, appreciated and motivated to perform at their best.
Here are some tips for putting these ideas into practice:
- Take Your Company Culture Into Account: Tailor incentive ideas to align with the values and culture of your organization.
- Gather Employee Feedback: Solicit input from employees to understand their preferences and motivations, ensuring that incentive programs resonate with them.
- Be Creative and Innovative: Explore unconventional incentive ideas that go beyond monetary rewards to promote engagement and satisfaction.
- Be Transparent and Authentic: Clearly communicate the criteria and expectations for earning incentives to foster trust and accountability.
- Offer Variety: Provide a range of incentive options to accommodate diverse preferences and interests among employees.
- Celebrate Small Wins: Recognize and celebrate achievements, milestones and successes regularly to maintain momentum and motivation.
- Measure Your Impact: Continuously evaluate the effectiveness of incentive programs through feedback and metrics to make informed adjustments and improvements.
Implementing a thoughtful, effective employee incentive program requires a thoughtful and strategic approach that is regularly fine-tuned. Leveraging an employee engagement platform like Inspirus gives you the tools to reward and celebrate employees with customized incentive programs that motivate your workforce
Create a Thriving Connected Workplace Culture With Inspirus Connects
Additional Resources About Employee Incentives
The Impact of Effective Communication of Incentives on Employee Motivation
Cash is No Longer King
