5 Reasons Why Traditional Rewards System Don't Motivate Employees Anymore

Blog

5 Reasons Traditional Rewards System Don’t Motivate Employees Anymore

Kartikay Kashyap

March 28, 2025

EMPLOYEE ENGAGEMENT

Table of Contents

Join our community

Companies have to redefine their EVP to attract good talent.

Do we use a speed post to send an appointment letter to an employee, or do we still use pagers to send text messages? No, Right! These are some of the old methods of communication. So why do we still have archaic methods to recognize today’s new-age workforce? Like everything else in the world, the way to reward and recognize employees has changed with time.

Many factors have changed human relations in the past two to three years. It has also evolved through disruptions such as the pandemic and the widespread adoption of technology and digitalization in HR. The needs and requirements of employees have also changed in the last two to three years. With such changes, the old archaic ways of engaging with employees no longer work. Companies will need to adopt new ways of engaging with their people. Challenges remain the same. Attrition is still a big challenge, and as per studies, many employees need to be more engaged at work and looking to leave their jobs.

Some Traditional Ways That Don’t Work Anymore

Many practices in the domain of R&R (Rewards and Recognition) and employee engagement are redundant and do not work anymore. However, many companies still fall into the trap of being constant because their cultures are resistant to change.

1. Delayed Rewarding: Annual appraisals need to be updated. Shift to instant rewards using digital platforms for immediate employee recognition. We are living in a fast-paced world. The new generation wants instant gratification. Rewarding an employee for their good work after a year results in delayed appreciation.

2. Fixed Benefits: Fixed rewards are less appealing. For a while now, it has been noticed that employees are done with rigid practices such as receiving the same reward or gift during Diwali or some other festivity. Moreover, other benefits such as health insurance, travel allowances, and more remain fixed for all employees following a rigid ‘All Size fits all approach.’

3. Engaging Employees in a Hybrid Model: Many companies around the world have now shifted to new models of working. The concept of five days a week is also becoming redundant. So, employees need not meet or see each other daily. So, how shall we drive collaboration and bonding among employees? Connecting employees through video conferencing platforms and Zoom calls may be a short-term solution. Moreover, it is a big challenge for global organizations to connect people.

4. Employee Engagement Surveys: The practice of conducting an employee engagement survey once a year is an age-old one. In this volatile world, monitoring the pulse of employees daily has become necessary. With rising attrition, companies are always at risk of losing good talent.

5. Building Physical Employee Resource Groups: Employee resource groups have existed for a while. However, one of the main limitations of this approach is that it doesn’t cascade to a global level. Companies with employees all over the world find it difficult to create a sense of community and togetherness among their employees at a global level.

How Can HR Professionals Replace These Old Ways Of Rewarding

Do you find yourself dabbling with the above challenges? No worries—AdvantageClub.ai has your back! Our new digital solutions and features help organizations replace the above age-old methods of engaging employees with digital solutions.

1. Instant Rewarding

Organizations should adopt instant reward practices instead of making employees wait for their rewards. Digital R&R platforms can help organizations drive instant rewards, where employees and managers can be rewarded through points. These points can be redeemed for various brands and products on the same platform.

2. Personalized Rewarding

Digital platforms such as Advantage Club.ai allow organizations to give flexibility to employees and the power to choose how they want to get rewarded. By flexible redemption, users can choose which brands or products to spend their rewarded points on. These products vary in categories such as education, shopping, well-being, and more. Moreover, companies can offer employees a list of curated gifts they can order using the platform during festivities. This gives employees the choice of how they would want to get rewarded.

Connecting People Through Intranet Platforms

Digital R&R platforms like AdvantageClub.ai can work as intranet social media platforms with a dedicated Buzz section that gives updates to all company employees. They also support peer-to-peer recognition with digital badges, so one employee can appreciate another employee no matter where they work.

1. Pulse Surveys

AdvantageClub.ai comes with Mood-o-meters, which can help companies monitor the pulse of employees on a daily basis and take action immediately when they witness alarming numbers. This helps companies respond to situations before they get out of hand.

2. Building Global Communities

Through digital solutions, companies with a global presence can create international communities where like-minded people can collaborate through hobby clubs such as music, art, photography, dancing, etc. Moreover, this also becomes an opportunity to embrace different cultures and ethnicities and build a diverse workforce.

Why Should Companies Adopt New Ways Of Engaging Employees

The world is rapidly embracing the power of AI and digitization. These Advancements are now defining the new ways in which employees want to interact with their employers. The new generation is more accustomed to digital ways of doing things. It is much faster and also has the ability to personalize and tailor-made experiences for employees.

1. Instant Gratification

Features where peers and managers can appreciate and reward their employees instantly give gratification to their employees. The current generation wants to be rewarded immediately for their contribution rather than waiting for the annual appraisals or the financial cycle to end. In fact, it is much better to reward employees for their good work immediately to extract better motivation from them.

2. Freedom of Choice

The new ways of rewarding give employees freedom of choice in customizing their benefits as per their needs. In today’s world, providing a better experience is all about giving the freedom to choose and customize. AdvantageClub.ai’s AI algorithm technologies can personalize the experience of getting rewarded through personal preferences. Moreover, employees can redeem their reward points with over 10,000 brands.

3. Better Bonding

Employees can connect and interact with their peers remotely on an intranet praltform such as AdvantageClub.ai. Our Buzz section will keep employees posted about what is happening in the workplace and help them stay connected wherever they are.

4. Better Listening Of Employees

Digital pulse surveys and Advantageclub.ai’s mood-o-meter help companies better understand their employees. These features allow companies to track their employees’ sentiments on a daily basis, allowing organizations to build future employee engagement programs more effectively.

5. Enhanced EVP

EVP stands for ‘Employee Value Proposition,’ which means how an employer positions itself in the talent market to attract prospective employees. New and digital ways of engaging with employees give them a better employee experience and help the company build a better employer brand to attract talent.

Importance Of Measuring The Impact Of R&R Programs

Just like how we measure the performance of the business, which helps us to find out how much revenue it is making and the company’s profitability. In the same way, HR professionals need to measure the impact of their Rewards & Recognition (R&R) programs. It helps us understand the performance of our R&R initiatives and find out whether the employees value them.

Therefore, it allows the organization to determine what reformations and improvements it needs to implement to make its R&R programs more impactful.

How Modern R&R Programs Can Support DE&I Initiatives

Modern R&R platforms like AdvantageClub.ai offer various features, one of which includes Hobby Clubs. On the AdvantageClub.ai platform, organizations can create Hobby Clubs where like-minded people can come together and share their thoughts. These clubs include music, photography, creative writing, and more. Such initiatives create a sense of community and belongingness in employees.

In the same way, companies can also create employee resource groups (ERGs) to support their DE&I initiatives. These ERG groups can spearhead these initiatives by sensitizing their company and colleagues to various issues pertaining to their community and their representation in the company.

Moreover, AdvantageClub.ai also supports peer-to-peer recognition, where colleagues can appreciate each other through non-monetary appreciation. Peer-to-peer recognition strengthens employees’ sense of belonging and allows them to celebrate differences.

Most progressive companies have realized how archaic ways of handling employee relations can harm them. Many of them have already adopted new ways of engaging with employees. Such new initiatives help organizations reimagine their offerings and redefine their employee value proposition (EVP). Companies with solid EVPs and cultures become the employers of choice for many people.