Gone are the days when your employee loyalty program focused solely on the number of years an employee has stayed with the company. Currently, more and more organizations are realizing the value of quality work— an employee’s contribution to the success of the company— over mere quantity of years or tenure.
Recent trends in employee loyalty programs are geared towards ensuring that the most talented and most productive employees not only stay in the company for many years but their “loyalty” should also translate to continuous productivity. Employee needs and expectations are changing, which is why company incentives and rewards programs should also reflect these changes.
Below are strategies that organizations should consider if they want their employee loyalty program to remain relevant and effective even in the coming years.
Rewards Should be Largely Based on Employee Contribution Rather than Tenure
Instead of merely counting the number of years, organizations are seeing the value of measuring success and loyalty in terms of actual contributions to company goals. Loyalty rewards should be given to individuals who are top performers, those who have helped move the company forward based on measurable success indicators. In doing so, other personnel would be encouraged to work harder and smarter, knowing that their efforts would be valued regardless if they have been in the company for many years or not.
Incentives Should Not be Cast in Stone
Rewards can only be “rewarding” if it is valuable to the person who received it. Otherwise, it will not make a difference. An employee who is highly introverted and who hates traveling will not feel rewarded when given an incentive trip, no matter how expensive the travel package is. This is the reason why it is more effective if the loyalty program will offer options or choices rather than fixed incentives so that the recipient can choose what he or she values best.
Rewards Should be Aligned with Company Culture and Values
Just because a certain loyalty program had been effective in one organization does not mean it will have the same impact in a completely different company and industry. It is best that rewards and incentives are based on what the organization stands for so that the employee will feel a much deeper connection and affiliation with the company.
Make Sure that Your Loyalty Program Makes the Employee Feel Valued
Ultimately, the most effective and impactful employee loyalty program is one that makes the employee feel valued in the organization. In a recent study published by Forbes, it was revealed that 66% of employees would most likely leave their job if they don’t feel appreciated at work, which means companies who want to ensure that their best personnel will remain should make sure that they are valued.
The above mentioned strategies can significantly improve the impact and effectiveness of your organization’s employee loyalty program in the coming year. If you want to retain your top talent for years to come, cement their loyalty by crafting a program that will make them feel valuable and recognized for their efforts.