9 Reasons why you should revolutionise your 2023 employee reward & recognition strategy
When in uncertain times, human beings often go into survival mode, and when the threat is financial, that means cutting costs and going without to afford the essentials.
Although an organisation is made up of and powered by people, it needs to adopt a different approach – investing instead of cutting expenditure. Since employees are at the core of businesses and driving their success, it’s they who need to be invested in.
Reimagine Your 2023 Reward and Recognition Strategy
A reward and recognition strategy goes beyond incentivising and acknowledging good work. It plays a big part, and it’s essential to reward your people for achieving brilliance. However, businesses are now reviewing their reward strategies with the aim of getting and giving more for less.
Support Financial Wellbeing
A cash reward will go a long way towards supporting the financial wellbeing of your employees but allowing them to earn cashback continuously will help them when that bonus runs out.
Our employee cashback card is one of the most popular ways to make your employee rewards go further, and they can use their cards worldwide to pay in-store and online, wherever Visa prepaid is accepted.
Whether you incorporate it as an employee benefit or use it solely for reward and recognition, your employees can top it up themselves and earn up to 15% cashback on everyday essentials.
Consider the addition of an employee benefits platform, so your business can reward and support its employees every day of the year, giving them discounts with high street and high-end brands and the retailers they need and love.
Improve Physical Wellbeing
Is a corporate gym membership a reward or an employee benefit? Technically, it’s a benefit, but what if you take yourself out of the mindset of only rewarding employees a set times of the year or for specific achievements?
Shift your focus from rewarding performance to rewarding loyalty. Your employees don’t have to work for you. It’s a hard sentiment to digest because people need jobs, but research shows that it’s an employee-driven market, and your workforce isn’t afraid to look elsewhere. 45% of people in employment are actively job hunting, so why not reward their decision to stay with you by improving their physical wellbeing with up to 25% off an annual gym membership?
Prioritise Mental Wellbeing
Financial difficulties caused by the cost-of-living crisis add to personal pressures and magnify any existing work-related stress until your employees reach a point of burnout.
An employee assistance programme also falls into the category of a workplace benefit, but what better way can a business show that it empathises with and recognises its employees than by providing mental wellbeing and professional support, available 24/7 when it’s needed most?
9 Reasons for adopting change
Here are nine ways your business could benefit from embedding financial, physical, and mental wellbeing initiatives into your employee reward and recognition strategy:
1. Boost Employee Engagement
A supportive and inclusive reward and recognition strategy will boost employee engagement. Companies with an engaged workforce deliver 147% more earnings per share than their competitors.
2. Boost Employee Performance
When you effectively recognise and reward your employees for their brilliance, however you define it, you encourage them to continue at that pace. An unappreciated employee performing at a high level will lose their drive and passion if their hard work is unacknowledged, and their performance will decline.
79% of workers said they worked harder when recognised, and 78% were more productive!
3. Reduce Absenteeism
When you use your reward and recognition strategy to keep your workforce engaged, happy, and acknowledged, you could reduce absenteeism by 41%. In addition to increased engagement, if you’ve included mental and physical wellbeing initiatives into your strategy, you could improve the health of your workforce, thus reducing sickness-related absences.
4. Retain Talent
As we mentioned above, 45% of people in employment are looking for a new job, and if your employees feel undervalued, they may join that figure. A study conducted by Deloitte found that recognition programmes reduce voluntary staff turnover by 31%.
5. Attract Talent
With employees demanding more and job seekers in the driving seat, talent acquisition has become a challenge for HR professionals. Improving your employee value proposition with a robust reward and recognition strategy and sought-after employee benefits helps attract top talent and shorten the expensive recruitment process.
6. Save Money
Add our Cycle to Work salary sacrifice scheme to your 2023 strategy, and your business could save money. On top of the great financial savings to your employees, you'll also see savings of up to 15.05% on your National Insurance contributions for those who use the scheme.
Although salary sacrifice is an employee benefit, enabling your employees to afford a top-spec bike or even giving access to affordable tech will feel like a reward to those cutting back on their spending.
7. Create a positive workplace environment
When you create a positive workplace culture through fairly and effectively rewarding and recognising your employees, you can see improvements in many areas. Your happy and engaged workforce will be productive, your absenteeism rates will reduce, you’ll be better positioned to retain your top talent, and you’ll be on your way to becoming an employer of choice.
8. Increase Social Value
Your organisation’s social value needs to be focused on, especially if your business bids on government tenders. Often linked to Corporate Social Responsibility (CSR), social value doesn’t just focus on the business’s environmental and community initiatives but also looks at how you take care of your people.
9. Create employee loyalty
Beyond engagement and the drive to do well and stick around, a loyal employee will live and breathe your business. If an employee feels like your business is doing its best for them, they will repay that generosity in kind.
Reap the benefits in 2023 and beyond with Sodexo engage
Are you ready to reap the benefits of an effective, inclusive employee reward and recognition strategy? Contact Sodexo Engage today.