A successful business requires a motivated team. However, this motivation doesn’t always come naturally. It can take work for businesses to help employees stay passionate about what they do day-to-day.

One way to encourage your team to put in their best efforts is by offering some form of incentive. Incentive programs give your team something to work toward and help to create a more collaborative business atmosphere.

The great news is that a wide range of incentive options can help spark engagement from each of your employees.

Why Employee Incentives are Beneficial to Your Business

Offering incentives to your teams can provide a number of benefits to your business. This includes:

• Boost in Motivation and Output – If your employees feel like their work is appreciated and rewarded, they are likely to stay more motivated day-to-day. This increased engagement helps teams stay productive throughout the year, bringing more energy and focus to the work they do.
• Improve Team Morale – Employees may not know if their efforts are valuable to the organization. This lack of clarity can start to create negative energy around the office, impacting the morale of other hardworking employees. Providing your teams with tangible rewards for their efforts can produce the opposite effect, improving morale levels across all teams.
• Better Employee Retention – Regularly recognizing your team’s accomplishments shows them that they’re not just another cog in the machine—their position and the work they do each day really matters. This helps to keep employees grounded in their roles and makes them less likely to explore other employment options.
• Strong Company Culture – Incentives can be great for the person receiving them and can actually serve a greater purpose for the entire organization. A routine of rewarding everyone’s hard work helps to build a culture of recognition and appreciation as a core business value. This naturally helps to create a more supportive and upbeat work environment that people enjoy being part of each day.

Incentive Ideas to Boost Performance and Team Morale

Choosing the right incentives can make all the difference if you’re trying to boost performance and team morale. Here are several options to explore:

Performance-Based Incentives

One of the most effective ways to incentivize an employee’s efforts is by offering them a performance-based incentive. This is typically how sales teams operate, but the format can extend to all departments in your organization.

For example, offering employees gift cards with variable amounts based on achieving specific goals can motivate teams to complete projects on time. It also helps to reinforce the value for team members of displaying a strong work ethic and putting their best foot forward.

Spot Recognition

Sometimes employees take initiative in certain areas even when they weren’t prompted to do so. Perhaps they were offering exceptional customer service, helping an employee in need, or over-delivering on a project. These are the perfect moments to show team members how much their extra work means.

Spot recognition focuses on identifying the small things your employees do each day that make a significant difference to the business. If and when you see these things happen, send them a thank-you note or a small gift card to show that you’re noticing their efforts.

Employee of the Month/Quarter Programs

A formal recognition program that takes place every month, quarter, or year can help your business remain consistent in its incentive efforts. These types of initiatives help to standardize incentives across your organization so no individual employee feels left out.

Another benefit of a formal program is the fun of creating and attending celebrations. Acknowledgements don’t have to be rigid. Businesses have an opportunity to show creativity, for example by creating original awards for each department and hosting events at a local restaurant or rented venue.

Milestone Anniversary Gift Cards

Encourage your employees to stay long-term and show them you’re regularly thinking about their progress by giving milestone anniversary gift cards based on the number of years team members have worked with the company.

Typically, businesses will provide these gifts once an employee hits a specific milestone, like their 5th,10th, or 15th year and so on. The longer the employee has been with the company, the higher the amount you could provide.

Wellness Program Incentives

Incentivize your employees to stay motivated at work and incorporate healthier habits into their lifestyle with wellness program incentives. You could consider encouraging employees to get involved in fitness challenges, attend optional health screenings, or join workspaces focused on reducing stress and promoting exercise.

These types of incentives are great for helping your employees establish healthier routines throughout the year—routines that can help them live happier, healthier lives, for themselves and their families.

Learning and Development Incentives

Helping teams grow their skills over time can be a great way to build a stronger and more capable organization. Get your employees excited about the potential for advancement within the company by offering learning and development incentives.

For example, you could offer to fund various courses or certification programs closely related to team roles and also provide employees with small awards upon completion. This shows that you’re willing to invest in the team’s future success and reward employees for the extra efforts they make to improve.

Holiday Bonuses

The end of the year comes around is the perfect opportunity to acknowledge the hard work your team has put in throughout the year. If you’re looking for a way to express gratitude, holiday bonuses are an excellent option to consider.

This can be done using a traditional cash bonus or ] a gift card. If you decide to send a gift card, try to make it flexible enough so that employees have the freedom to use it for whatever they wish—this helps keep the gift personal.

Team-Based Challenge Rewards

Add a bit of fun to the workplace and give employees the ability to win awards by organizing team-based challenges. These initiatives are a great opportunity to bring your employees together and give them a common goal to work toward.

You could arrange different prizes based on how teams finish each challenge, helping them develop collaboration skills and boost company morale.

Referral Program Incentives

Your current employees are often the best place you can turn when looking for new employees. A smart way to encourage team members to share new job postings with their friends or former colleagues is by creating a referral program.

When one of your employees refers a candidate who successfully joins the team, you can show appreciation with a gift card or another monetary reward. This can actively motivate your team to act as positive ambassadors for your business.

Start Improving Employee Engagement Levels

Introducing incentives for your employees demonstrates your appreciation for their efforts and rewards them for their hard work. By following some of the strategies discussed above, you can help improve the level of engagement your employees feel each day and foster a more positive work culture for everyone.

Author Name: Cindy Mielke

Author bio: Cindy is passionate about the incentive industry. In addition to her role as Vice President of Strategic Partners here at Tango, she is a Certified Professional of Incentive Management who proudly serves on two industry boards. When she’s not working, Cindy enjoys spending time with her family—including three cats, two dogs, and a horse—and sharing her love of nature as a Nebraska Master Naturalist.

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