Darlene Berliner, MBA, SPHR, SHRM-SCP, reviews some of the more modern, creative employee reward systems to optimize employee engagement and workplace culture.

1. Reviewing Creative Employee
Reward Systems
DARLENE BERLINER
DarleneBerliner.com

2. AS EMPLOYERS
ARE FACED
with the increasing challenge of recruiting and
retaining top talent, the topic of employee reward
and recognition systems has become increasingly
important among HR professionals.
However, before hastily implementing the latest
trending reward system within your company, it is
vitally important to establish a plan and think
through the challenges and benefits associated with
making this important change.
Remember that it can be detrimental to employee
morale to remove, or significantly modify, a reward
system upon realizing it was not implemented
correctly. If your company is considering updating or
starting a reward and recognition program, consider
the pros and cons listed below:

3. GROUP / TEAM BASED REWARDS
A Group Based Reward System is popular in the technology industry as well as in companies that
utilize a team approach to recognize and celebrate an entire team for achieving a goal or meeting key
performance indicators. With this approach, employees are encouraged to collaborate and work
together to solve issues and reach the team goal. When implemented correctly, the rock star
employees at an organization will be more likely to support and give candid feedback to their
coworkers.
The downside to utilization of this plan occurs when under-performing employees are routinely
assigned to a winning team and are consistently recognized and rewarded for work they may not have
been responsible for. To help combat this challenge, consider supplementing a team based reward
system with individual rewards as well.

4. PROFIT SHARING
A study in 2015 found that 19 percent of employees
in the private sector were offered a profit sharing
bonus. In most cases, profit sharing programs are
comprised of a percentage of employee salary. These
programs reward employees for making a combined
contribution to the goal of the company.
A profit sharing goal can also help keep a specific
metric first and foremost in employee endeavors. If
your company is implementing this option, consider
establishing guidelines around the tenure an
employee must possess before becoming eligible to
receive the profit sharing bonus.

5. Another popular recognition technique involves
utilizing your employees to recognize and celebrate
others in your organization. A peer voting system can
be used to highlight an employee who is an
exemplary performer and role model for others in
the company. Employees nominate colleagues for
specific contributions to the organization’s goals and
objectives, and votes are subsequently cast
throughout the company for the nominated
individual. This option gives each employee a voice,
while also removing the ambiguity sometimes
affiliated with a reward program.
As you weigh the pros and cons of various reward
systems, carefully consider the culture of your
organization and never be afraid to innovate and
create a reward system that is customized to your
company’s unique needs. For example, if
transparency with others is a value you want
everyone in your company to display, think through
creative ways to recognize an employee for being
open and honest.
PEER VOTING AND
RECOGNITION

6. In many cases, a thoughtful recognition system does not have to be costly and can be just as
effective as the more conventional and pervasively used systems. If you are reticent and fearful of a
decision to implement a system which might prove to be ineffective, start small and take note of what
works well in your organization. Subsequently, as you become more confident in your observation
and decision making skills, build out the reward and recognition system to a fully robust and
comprehensive mechanism for recognizing all of the values, skills and abilities deemed worthy by
your organization.

7. THANKS FOR VIEWING!
DARLENEBERLINER.COM