1. Experiential rewards will gain popularity as employees prefer memorable experiences over material gifts for greater satisfaction and motivation.
2. Organizations will emphasize building a people-first culture to enhance employee engagement and retain top talent by rewarding and caring for employees.
3. Wellness benefits like meditation, yoga, and fitness programs will become increasingly important to support employees’ physical and mental health, leading to increased productivity and reduced absenteeism.
4. Instant recognition will become more critical, with a shift towards timely and technologically advanced reward programs to meet the expectations of a digitally savvy workforce.
5. To engage employees, personal development opportunities will be increasingly used as a reward, focusing on career growth, skill enhancement, and leadership development.
As the year starts, trends in employee rewards and recognitions in 2020 have become the talk of the HR world. With the changes in workforce profiles, preferences, and priorities, organizations need to adapt their employee reward and recognition strategies.
As per statistics, in the year 2002, 84% of the organizations made use of the employee rewards and recognition strategy to motivate the employees which grew to 87% in the recently concluded year.
Let’s take a peek at the most likely trends in employee rewards and recognition in 2020:
1. Experiential rewards will become more popular
2. Building the foundations of a solid people-first culture
3. Benefits related to wellness will be on the rise
4. Instant/ Timely recognition will become more critical
5. Personal development will emerge as an essential way to reward
Research has shown that employees prefer great experience over material gifts when rewarded at work.
Employees no longer wish to receive any merchandise or cash as a reward.
They are looking to explore new activities that are memorable and drive enjoyment.
For instance, many organizations consider offering international vacations as a reward for their employees.
Experiential rewards are likely to offer greater employee satisfaction and motivation.
2020 would give rise to the employee-first decade, with more and more organizations adopting it as their business goal.
This is necessary to elevate the organization’s culture and retain top talent.
For instance, organizations like American Express consider redefining their existing strategies to reinvent their organizational culture.
The best way to build a great culture is to reward, respect, and care for employees at every level.
Wellness programs such as meditation, yoga, zumba, gym memberships, and spa sessions can greatly benefit employees.
Given the work-related stress, taking care of both the physical and mental health of employees have become essential.
Wellness programs have two benefits: They positively impact employee well-being and cater to the employer’s interests.
Hence, employee wellness levels improve and become more focused, productive, and innovative.
Also, it can lead to a considerable reduction in sick leaves and absenteeism.
Digitally savvy employees want instant gratification in every sphere of their lives. Hence, they want recognition at the right time and in the right way.
Hence, organizations need to make reward and recognition programs technologically advanced and mobile.
Thus, something worthy of recognition should happen instantaneously instead of at the end of the month, quarter, or year.
As per statistics, 65% of employees consider personal development significant in their jobs.
Thus, career progression and skill development are two global HR trends.
Hence, employees want clarity about their roles and the opportunities for career and personal growth.
Employees look for enhanced responsibilities, leadership roles, special assignments, and interaction with senior leadership for self-development.
Organizations can consider workshops and courses that aim to broaden the knowledge levels of the employees.
The organization may also provide training sessions to employees to enable them to learn new skills and refine existing skills. It is beneficial to the organization as well.
Read Key Trends in HR for 2021 and Beyond
Also read Key Employee Rewards and Recognition Trends in 2021 and Beyond
Thoughtful rewards, given in the right way at the right time, can bolster motivation, productivity, and loyalty in the workforce.
2020 as a year should see an increasing focus on meaningful employee rewards, recognition, and benefits across organizations.
Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of corporate and entrepreneurship experience. In the past, Sagar has worked in leadership roles with companies such as Genpact, Infosys, and ICICI Bank. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn
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