1. Experiential rewards are expected to gain popularity as employees increasingly prefer memorable experiences over material gifts for greater satisfaction and motivation.
2. Organizations will prioritize building a people-first culture to enhance employee engagement and retain top talent by fostering a culture of care and reward.
3. Wellness benefits, such as meditation, yoga, and fitness programs, will become increasingly important in supporting 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 recognition in 2020 have become the talk of the HR world. With changes in workforce profiles, preferences, and priorities, organizations must 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 an excellent work experience over material gifts when they receive rewards 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 an increasing number of 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 significantly benefit employees.
Given the work-related stress, taking care of both the physical and mental health of employees have become essential.
Wellness programs offer two key benefits: they positively impact employee well-being and cater to the employer’s interests.
Hence, employee wellness levels improve, becoming more focused, productive, and innovative.
Additionally, it can result in a significant reduction in sick leave 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.
According to statistics, 65% of employees consider personal development to be 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 seek enhanced responsibilities, leadership roles, special assignments, and opportunities for interaction with senior leadership to foster their self-development.
Organizations can consider workshops and courses that aim to broaden the knowledge levels of the employees.
The organization may also offer training sessions to employees, enabling them to acquire new skills and refine existing ones. 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 experience in both corporate and entrepreneurial settings. Previously, Sagar has held 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
To stay updated on the latest HiFives blogs, follow us on Twitter (@MyHiFives)