Keeping employees happy is one of the most crucial tasks that any organization faces. Unsatisfied workers have a real impact on business - in fact, they cost the US economy $550 billion per year. The good news is that there is a lot that can be done to boost employee morale and keep employees engaged and excited. Though incentives tend to fall into two categories - monetary or non-monetary - they all have one goal: to motivate and encourage staff, and drive some desired behaviors. Employee incentives are a key part of a positive company culture, and a demonstration of your company’s values and investment in people. 

In this post, we’re covering our favorite employee incentive ideas. They’re broken down into monetary and non-monetary categories, but all of them are designed to help you attract, engage, and retain top talent. 

Non-monetary incentives

If you’re working with a smaller budget, there is still a lot that can be done to incentivize staff. Before you figure that there are no new ways to get employees to do exactly what you want, consider getting creative and trying some of these non-monetary incentives. Though some of them require an initial or periodic investment, there is so much more involved than just writing a check. Employees will appreciate seeing you “put your money where your mouth is” and show them how appreciated they are. 

1. Simply saying thank you

It costs absolutely nothing and can go a long way - a quick and easy thank you. If an employee has impressed you or somehow gone above and beyond, make it a point to say thank you. This shouldn’t be something that is an extra effort on your part, but the normal course of business. Make it a habit to tell employees things like “Thank you for a job well done”, “I appreciate your work”, “You did a great job”, or “I’m so happy to be working with you”. Most people do not get enough praise and feel consistently undervalued, and they are more likely to feel strongly about an employer who goes out of their way to show appreciation. 

2. Team-building retreat

Getting all of your employees together to have some fun is a great way of rewarding them for a job well done. When you organize a multi-day off-site retreat, it shows your employees that you are truly invested in them and willing to give up their usual day-to-day work in order to learn, get to know each other, and enjoy each other. Retreats usually include meals and you may want to add some swag. Finish the event with a fun recreational activity, so that it’s not all work and no play. You can actually roll a few different incentives into one with this idea! If you need help planning an engaging off-site retreat, reach out to Surf Office - we help companies with this every day! 

3. Better equipment

Do your employees have what they need to do a great job? Can they perform their job function safely, comfortably, and reliably? Something as simple as an upgraded desk chair can make a big difference to people. Periodically review computers, monitors, office furniture, uniforms, supplies, or other equipment that people use throughout their work. If any of them could use an update, do so as a reward for your best team members. Implement things like a better employee scheduling app or more rugged laptop cases as a small way to make life easier on your staff. 

4. Public recognition

One of the most powerful ways to encourage positive employee outcomes, public recognition allows people to be appreciated in front of their peers. For example, you might hand out awards in your next team-building retreat, or start a meeting by calling out a certain person’s outstanding results. You can honor employees with a thank you, while encouraging the same behavior in others. After all, who wouldn’t want to also get such a display? It’s a smart way of showing your entire team the efforts you expect, while also demonstrating that you are grateful and appreciative. As you share the employee recognition, you can share why it’s particularly important and meaningful, and that gives everyone present more context into the “bigger picture” that’s so important for people to understand. Learn more about employee recognition types in our blog. 

5. Social recognition programs

Being recognized by peers can be even more meaningful than cash. This is a low-cost way (free, if you don’t offer prizes to go along with the awards) to show appreciation and get everyone involved. Start by asking employees to nominate someone to win a special award, like employee of the month, or most valuable contribution. You can break things up by peer group if you want - for example, managers recommend managers or people nominate others within their department. You can decide how best to present these recognition awards and what goes along with them (for example, some companies give out gift cards or they contribute to the charity of the employee’s choosing). The point is that this recognition is driven purely by peer observation and cooperation, and not just their boss believing they do a good job. 

6. Professional development initiatives

The continued coaching of employees to reach individual and company goals is an important part of generating your best workforce. Professional development is increasingly important to today’s workforce, and millennials in particular value these efforts: 87% say that such development is important in their job. When you invest in your employees, they are much more likely to stick around for the long haul. It’s a win-win, though: your company also benefits tremendously from the enhanced knowledge and skill set of your workforce. As people learn new things, they can bring these talents into the workforce and apply them to their role, which only strengthens the teams you have in place. 

7. Health and wellness programs

Many companies are interested in incentivizing a healthier lifestyle for their employees. A healthier workforce can lead to less sick time, lower insurance premiums, etc. In fact, there are a lot of quantifiable reasons to encourage teams that are both mentally and physically healthy and happy. Things like free healthy snacks, on-site health screenings, bike to work reimbursements, standing desks, and annual wellness fairs can go a long way toward promoting a great lifestyle and showing employees that you care about them outside of work. You can even reward employees who hit certain milestones like joining a gym or quitting smoking. Many organizations implement things like “step” challenges or free yoga classes that offer a social element so that employees can also get to know each other better while they focus on their own health. 

8. Gifts

Fun and unique gifts can actually mean a lot to employees. Help them to celebrate achievements or milestones by granting them thoughtful and helpful merchandise. Things like anniversaries, customer service week, global wellness day or Bosses day can all be commemorated with items like branded tumblers, tech gadgets, or other high-quality swag. Combine your health and wellness initiatives with gifts by handing out nice yoga mats and towels. Or, get a little more creative and bring a massage therapist into the office for the day or stock the kitchen with yummy treats. You may even consider polling employees to see what they would enjoy the most, and then making a point of keeping those items on hand. 

9. Time off

One way to make people appreciate their job even more is to give them time away from it. More than 50% of workers have said they would take a pay cut in exchange for more time off, so that should tell you how highly valued time away can be. Time off is important for recharging, avoiding stress and burnout, and enjoying family and friends. It also allows people to travel, visit family, or participate in hobbies. Start by encouraging people to take the PTO they are entitled to. Too many workers feel pressure to leave vacation time on the table because there’s never a good time to use it. Let your employees know that you want them to enjoy their time off, and fully support it. Then, give them an extra day or two at the end of a big project or when they hit a significant milestone. For example, when someone returns from an important business trip, let them know you don’t expect them in the office the next day. 

10. Project autonomy

Being able to determine how you spend your time and work on projects that are more exciting to you can go a long way. Offering high-performing staff their choice of projects shows them that you value their expertise and their opinion, and that you trust them. Letting people have a say in their work both empowers and motivates them. Leaders who empower their employees are more likely to be trusted by them. Plus, when participants pick the projects, they are more likely to go the extra mile as they have more of a sense of ownership. Reward your best performing employees by asking them what they’d prefer to work on next, or if they have any interesting pet projects that you can support. 

11. Benefit programs

Things like insurance plans, stock options, cell phone plans, or transportation stipends are all examples of portions of an overall employee benefits plan outside of compensation. If you are hoping to incentivize more employee loyalty, consider beefing up your benefits package. Even small things like adding a bus pass or reimbursing a portion of home internet bills can be a start, but searching for better health insurance options or implementing tuition reimbursement will mean a lot to your employees. If you want, you can take a poll of employees and find out which benefits are the most meaningful to them. You may also want to do a cost-benefit analysis, as a lot of benefit companies work with organizations to put together a custom package that saves them money over the long-term. 

12. Performance evaluations

You might not think of this as an incentive, but you’d be surprised. Remember, incentives are meant to encourage behavior that you want repeated. Let employees know that they’ll be evaluated on a regular basis, with the opportunity to have real discussion around their career progression and compensation. Serious employees will be sure to give this a lot of attention and focus, and it provides an annual opportunity to reward high performers and address those who are falling behind. 

13. Travel incentives

Many companies have begun to offer reward trips, especially in sales-focused organizations. If you’ve ever seen a social media post from a friend in a tropical location, thanking their organization, they were probably on such a trip. If you have the budget, plan an exciting all-inclusive trip where the employee won’t have to pay for anything - and then invite only the top 10 performers for the year (along with a guest). Note: this works best in organizations with highly quantifiable metrics, such as sales quotas. Otherwise, it can quickly devolve into playing favorites which will have the opposite effect on motivation. 

14. Flexible schedules

Flextime is a highly valued perk that allows staff to modify their workday based on their own unique needs or preferences. They might adjust their start or finish times to accommodate child care schedules, classes, etc. Currently, with new research on when people are most productive, it’s become more popular for employees to choose the hours when they personally are most effective. Obviously this only works when work is quantifiable or deliverable-based. Many teams will consider this a highly valuable perk and work hard to meet the criteria you set if it means they can flex their hours. 

15. Undesignated office

An office might seem like a strange reward, but it’s something employees actually get excited about. If space allows, set up a great office: a super-comfortable chair, oversized monitor, great view, stocked mini-fridge, etc. Let it be known that this office is a perk for high-performing employees. For example, if your company designates an employee of the month, then this can be their “home” for that month. The same goes for a parking space or other highly coveted physical space in or near your building. 

16. Office party

Sometimes it’s not just one individual or team that makes a big difference, but the entire office or organization. Share widespread appreciation by throwing an office party or hosting a meal. Having lunch brought in periodically is great recognition for an entire office, or hosting monthly pizza parties or happy hours. Make sure to include a cake when celebrating something special! Make sure to follow our blog for more employee appreciation ideas. 

17. Dress down days

If employees typically dress to impress, consider letting them be more casual as a reward. For example, “If we hit an aggressive client deadline, then everyone can be casual for the remainder of the week.” Being comfortable - and knowing their employer cares about their comfort - can actually go a long way with employees. Even better, this incentive is absolutely free and can be decided in an instant - it’s a great option when you are short on time or resources.  

Grab even more ideas for non-monetary incentives from our blog, and make sure to get some new employee retention strategies while you’re there!  

Monetary incentives

Remember, an incentive is simply designed to reward a behavior that you would like to repeat. Incentives are often for a job well done, but sometimes they are designed to encourage things like recruiting other great workers, or to live a healthy lifestyle. The truth is that for most people, money is one of the strongest motivators there is. That can come in several different forms rather than just handing over a check. Here are some of the best ways to use financial means to motivate employees.

18. Referral programs

A referral program is designed to reward employees for bringing in new talent. This saves significantly on the cost of professional recruiters and also means you’re more likely to gain employees that are aligned with your current staff. To keep a steady stream of qualified candidates, put together a program where employees get a certain financial amount when one of their referrals gets a job. Traditionally, companies offer something in the $1,000 range once an employee has been with the organization for 90 days. 

19. Profit sharing systems

Profit sharing is powerful because it enables staff to view themselves as owners of the company, which makes them excellent stewards. When your business does well, reward staff by splitting a portion of the profits amongst everyone. The amount will vary, because your degree of profit will likely change each year. Commit to taking a portion of those proceeds and spreading them out amongst your workers. They’ll not only feel valued, but work hard all year long because it has a real impact on their own pocket. 

20. Tuition reimbursement

These programs involve paying for a portion or the entirety of continuing education for your employees, such as taking college credits. Many employees in today’s market consider education to be paramount and are looking for new ways to develop personally and professionally, and they will consider such benefits before choosing an employee. Plus, research shows that employees who participate in such programs are more likely to be promoted and stay with the company. 

21. Bonuses

Sometimes when employees go above and beyond, they deserve additional compensation. A bonus is paid to an employee based on the attainment of specific goals or metrics, or for going above and beyond (such as covering for a co-worker on maternity leave). Some bonuses are paid quarterly, and some are year-end occasions. Research shows that most employees favor bonuses paid based on their own personal performance rather than that of the overall company, but that’s at the discretion of business leaders - after all, most people are happy to get money in any format!

22. Raises

Probably the most standard form of incentive, simply bumping up someone’s pay is a great way to show them you appreciate their hard work. Most experts would advise that it’s a good idea to lay out specific objectives and measurable outcomes that employees must meet in order to achieve a new pay grade. Furthermore, you don’t want to create any scenarios where employees are pitted against each other. That being said, offering a higher salary or hourly rate is one of the easiest and most straightforward ways to incentivize your staff. 

23. Higher wages

Similar to a raise, a higher wage can incentivize more interest in a position. If there is an opening in your organization and not many people have applied, you might consider raising the salary for the position. At the most basic level, money is a good way to encourage more interest in something - so raising the wage for a role will lead to more applicants. 

24. Commission

Commission is an additional amount of compensation earned by some element of a person’s job performance. Commonly used on sales teams, a commission-based role is one where the individual agrees to a pay plan that is based mainly on meeting certain objectives. For example, a commission plan might involve setting a certain number of meetings or hitting a quarterly sales number. Commission is normally entirely dependent on achieving a specified goal or metric. 

25. Double-time

If you have hourly employees, consider paying them more in certain instances. Most people are familiar with the time-and-a-half concept, where employees earn more on a holiday or other protected day. You could do the same to encourage work during periods where you need more help. If you’re trying to hit an aggressive client deadline or need to work faster on a bigger order, offer to pay people more (up to double) per hour in order to get things done. If the price tag of such an effort is just too much, consider doubling their “time” by increasing their breaks or lunch hours. For example, if they normally take an hour for lunch, let them take two hours and pay them their usual rate (so they get a “free” hour off). 

26. Points-based recognition programs

These programs have become more popular in recent years, and they involve a robust system of accumulating points to exchange for perks, prizes, etc. They let every employee collect and redeem points for rewards of their choosing in categories like merchandise, gift cards, experiences, charity, and more. Most companies use a special vendor for this, to manage the software platform and offer a wide variety of prizes so there is something for everyone. The flexibility offered by these programs is key, as employees can choose the rewards that really matter to them, from travel to music to the latest electronics. Most of these programs encourage team members to give each other points as well, such as for helping with an important project or spending a lot of time on an HR question. It can be really fun to see your points accumulate, knowing each point is a symbol of someone’s appreciation!