How to create an effective employee loyalty programme


Why is employee reward and recognition important?

Types of employee rewards

5 ways to make your reward programme more effective

Ready to create an effective loyalty programme for your employees?


How to create an effective employee loyalty programme

Have you heard about the ‘Great Resignation’?

Even if you haven’t heard the name, the consequences of it might sound familiar. A study conducted by Randstad UK in 2021 found that a quarter of all employees were considering leaving their job within three to six months.

Suffice to say, employee loyalty isn’t what it once was.

To ensure you attract and retain the best talent your industry has to offer, you need to be competitive in more than just salary, and an effective employee loyalty programme might just be the thing your organisation is missing.

Why is employee reward and recognition important?

There are a number of factors behind the recent Great Resignation, but according to Deloitte research, organisations with recognition programmes had 31% lower voluntary staff churn than those without.

There have also been multiple studies that demonstrate tangible business benefits of implementing an employee loyalty and recognition programme:

The advantages of feeling appreciated

Making sure your employees feel appreciated is essential for maintaining strong employee loyalty.

Two thirds of employees would quit their jobs if they felt they were underappreciated, while it’s even higher among younger age groups, with 76% of millennials admitting it would make them more likely to leave a company.

Feeling appreciated also makes a big difference to how we perform at work.

In fact, you’re much more likely to find highly engaged employees working within organisations with an employee recognition platform.

Types of employee rewards

There are a number of different ways organisations can provide employee rewards and recognition.

Monetary rewards

One of the easiest ways to reward success or show recognition for positive behaviours is with monetary rewards. This could be in the form of eVouchers or gift cards, voucher cheques or prepaid recognition cards. The benefit of prepaid cards is that they can be spent anywhere, giving employees the power to spend their rewards on the things they love.


Whether it’s to celebrate an employee of the month award, length of service or outstanding performance, we all love receiving awards.

Awards and certificate presentations shine a light on success and give the employees the opportunity to recognise each other, offering a more personal way of recognising someone than monetary rewards alone.

Team rewards

If you want to recognise the success of an entire team, you can also take advantage of the opportunity to build stronger relationships by treating them to a team meal, cinema trip or fun team building activity.

Even just ordering in some pizzas for their next on-site team meeting is a great way of recognising hard work.

A simple thank you

As we explored above, the simple act of saying thank you and demonstrating that an employee is appreciated can have a huge impact on productivity.

Don’t reserve thank yous for outstanding performance either—remember to show your workforce they’re appreciated even for their day-to-day work.

5 ways to make your reward programme more effective

1. Ask your team

The best way to know how your team wants to be rewarded? Ask them.

Send a survey around the organisation asking for specific and detailed feedback on the business’ reward ideas and what they’d suggest themselves. Consider making the survey anonymous to encourage more honest responses.

2. Align the programme with overall business goals

You shouldn’t implement a reward programme for the sake of it—it should be aligned with overall business and HR objectives.

If one of your goals for the scheme is around acquisition and improving employee loyalty for example, recognition for length of service and referring new starters should be included.

If you want to create a specific company culture you should be recognising the behaviours that embody that culture.

3. Set attainable goals

You need to set limits on what levels of success and behaviours qualify for rewards and recognition, but your employee loyalty programme needs to set attainable goals. It also needs to offer things that are actually appealing to your workforce (which should be the case if you follow step one above first).

4. Clearly communicate with employees

It’s not enough to simply tell everyone in the organisation about the reward programme in a company-wide email. You should be constantly communicating the rewards on offer and publicly recognising success.

Fail to do so and you’ll find the scheme quickly becomes forgotten about, and you won’t deliver the results you set out to achieve.

At launch, organise a company meeting to go over the programme in detail, reiterate this in a company-wide email, and encourage line managers to align employee objectives with the rewards programme.

5. Request feedback

Don’t just ask for employee input ahead of launching a reward programme—you should ask for regular feedback to ensure the rewards on offer are popular and being valued.

Again, this should be done anonymously to ensure you receive honest and open feedback.

Ready to create an effective loyalty programme for your employees?

Loyalty and recognition go hand-in-hand, and if you’re not implementing an employee loyalty programme that has rewards at its heart you’re not going to see the benefits you hoped for.

In order for your organisation to deliver improved retention, as well as the boosts to productivity and employee engagement that come with showing appreciation for hard work, you need to work with experts who know what they’re doing.

That’s where Sodexo Engage comes in.

We’ve been helping brands reward their workforce and recognise outstanding achievement for over twenty years, which means we’re best placed to help you implement an employee loyalty programme your team will love.

We offer the widest choice of rewards on the market, including fantastic bulk discounts across a huge range of retailers. The key benefits of our employee rewards and recognition solutions are:

  • The best deals on bulk discounts, with eVouchers and gift cards for over 150 retail chains across 130,000 UK locations.
  • Voucher cheques designed around your brand, with the employee choosing where they want to spend it.
  • Prepaid employee recognition cards offering unlimited spending freedom in-store or online.

Ready to find out more? Get in touch with our expert team today.