Reward Programs and Gifts for Employees
About 90 percent of companies offer reward and recognition programs for employees, according to a 2006 Corporate Leadership Council study published by the North Caroline Office of State Personnel. Reward programs, which can incorporate gifts as incentives, aim to reinforce positive employee behaviors, boost workplace morale and motivate high performance standards. Learn how to create reward programs that use gifts effectively to motivate employees.
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Positive Behaviors
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When deciding what type of reward program best benefits your company, consider what types of positive behaviors you'd like to reinforce among employees with gifts and benefits. Employees may be rewarded for contributing money-saving ideas, consistently receiving positive feedback from customers or developing a one-time solution to a complex workplace problem. You may also decide to reward employees for an above-average attendance track record if it seems like company absenteeism is on the rise. Reward programs can also be offered to employees who have improved in targeted areas, such as increasing sales, landing a specified number of contracts or effectively mastering a new technological component of their job.
Reward Program Types
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Companies may choose to instill different kinds of rewards programs. An "Employee of the Month" program is relatively common, although you'll want to make sure that target qualifications are in place so that employees aren't chosen haphazardly just to fill the slot; this is especially true for smaller businesses with low worker numbers. Another option is to choose a standout employee after a major project concludes whose contributions helped make the project a success. Some sales-based companies or departments may institute bonus rewards into bi-monthly paychecks for employees reaching specified sales targets.
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Considerations
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When planning a reward and gift program for employees, take their viewpoint into consideration to build buy in and enthusiasm for their ideas. Ask employees what types of rewards gifts they'd like to receive; for example, some employees may prefer workplace benefits such as preferred parking or extended lunch hours. Other employees may enjoy gift certificates to restaurants around town instead. Learning what types of rewards and gifts motivate employees within a particular workplace helps you design more effective programs. Employees may wish to be part of the selection process for rewards; in some cases, employees may feel that workers with high-profile assignments get to reap recognition and benefits for their job while behind-the-scene employees get passed over. Incorporating employee insight and peer review into the selection process can make workers feel more invested.
Gifts
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Have some fun selecting the types of gifts and incentives to incorporate into employee rewards programs after soliciting employee feedback. Ideas for gifts include books, flowers, gift certificates or tickets to special events. Other gift ideas include a working lunch with a preferred manager or mentor, employees may see this as an opportunity to make connections with executives in another department, gift certificates for facials and massages, parking or transit passes, office pizza party or gag gifts. Keep in mind that gag gifts should be in good taste and appreciated by the recipient; some employees may view a joking coffee mug, trophy, plaque or funny balloon as something worthless to throw away.
Taxes
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Provide selected employees with IRS guidelines for reporting employer gifts so that they're able to appropriately report cash, valuables or other rewards at tax time. For example, the gift of a vacation must be reported according to "fair market value," according to the IRS. Gifts should be reported for the tax year they're received, not necessarily when the employer announces that an employee will receive a gift or reward.
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References
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