Rebecca, a multinational IT company employee, purchased nearly $600 worth of Gucci sunglasses. With her regular salary earnings, she would have never considered buying such expensive glasses, but the micro-rewards system in her organization helped her buy them.
Wondering how?
What is a Micro-Rewards System?
How Does The Micro-Rewards System Work?
Giving Rewards
In this digitized way of rewarding employees, managers can reward their team members using a Digital Rewards and Recognition platform. In such programs, companies only give access to managers or the leadership team to give rewards. One can give rewards by going to the ‘Give Rewards’ section on the home page, selecting the recipient’s name, selecting the number of points or cash, selecting a digital badge coupled with a cash reward, and submitting. Managers can also include a note of appreciation with the points reward.
Redemption
After receiving points as rewards, employees can redeem these rewards on the ‘Redeem’ section available on the home page of the R&R platform. This section will have a comprehensive list of brands from various categories: travel, entertainment, wellness, food, shopping, etc. Employees can use their points and pay the balance through their pockets to buy expensive items, allowing them to redeem their points flexibly.
Appreciation
Apart from rewarding employees through monetary terms, companies can also drive non-monetary rewards where employees can show appreciation to their colleagues through badges and a note of appreciation. Moreover, the giver can choose who can see the act of appreciation. Employees can appreciate it by going on to the ‘Appreciate’ section, selecting the recipient’s name, selecting the badge, attaching a note of appreciation, and copying people they want to see the appreciation given.
What are the Benefits Of Micro-Rewards System?
1. Employee motivation: Since micro-rewards can be given instantly and promote continuous rewards, employees are more motivated throughout the year. Employees perform at their best when continuously rewarded for their efforts, sharing in the organization’s success.
2. Employee engagement: Employee engagement is a big challenge for many companies. It takes more than occasional recognition to keep employees interested. You need to make them feel appreciated and seen at every opportunity. Small victories are celebrated in real time with micro-rewards, which helps maintain momentum. People develop a deeper bond with their work and those around them when they truly feel valued. Micro-rewards systems can build such a culture through technology.
3. Employee attrition: One of the big impacts that a sound reward system like micro-rewards makes is on the attrition level of employees. In such a VUCA world, organizations are always at risk of losing good performers. In such a case, they are bound to develop strategies that can help them increase retention rates in their company. With features such as continuous rewards, instant recognition, innovative ways of appreciation, and flexible redemption of points, micro-rewards platforms are the best choice for controlling attrition in the organization. An internal study by AdvantageClub.ai found that such initiatives can reduce attrition by 45%.
4. Builds a culture of appreciation: Apart from monetary rewards, micro-reward systems also help organizations drive peer-to-peer recognition, where colleagues can appreciate each other through badges and a note of gratitude or encouragement. Digitizing this process allows employees to appreciate their peers on the go. This builds a circle of appreciation that spreads throughout the organization.
5. Builds social bonds: Micro-rewards platforms act like an intra-social networking platform for organizations. Whenever an employee gets appreciated, other employees are also notified of this appreciation, which builds a sense of social recognition in employees. Moreover, employees can write on their walls, which is visible to others, just like how a social networking platform works. All such features help employees to have a sense of social recognition and build social well-being, which builds healthy bonds among employees.
