Most people appreciate being rewarded for their hard work, so offering bonuses is a great way to show your appreciation. But what should be included in an employee bonus? This is the question that has set HR departments abuzz with thinking about how to reward employees in the modern era. This post will cover many of the older options which still remain relevant and explore some that are more suitable for today's dynamic workforce.
What Makes Bonuses So Effective?
Everyone desires to be rewarded for the fruits of their labor, as is the human condition. This reward can come in many guides, from a simple pat on the back to something more elaborate and tangible like stock options (discussed a bit later). In most cases, companies will use bonuses to retain top talent and ensure they remain motivated to achieve high levels of success. But bonuses go beyond just providing financial rewards; they also create a sense of ownership in the company and keep employees engaged by emphasizing that they contribute directly to the organization's success. Concrete incentives make it much easier for workers to stay enthusiastic, as they have something real to strive for and focus on.
Bonuses You Can Offer Your Employees
While you might understand the advantages of setting up a reward program to boost productivity among your team, the challenge often lies in considering what bonuses to offer. As already mentioned, some perks need not be financial, while others can be. So let's look at some interesting options you can consider for your team members.
Flexible Working Hours
The first option has become very in vogue these days, partly due to the rise in remote working but also because people simply want more time to spend with their family and enjoy their lives. In fact, some studies have shown that an employee who can focus on the things that matter in their lives will bring that positivity back into the office and become much more productive. Moreover, it can massively improve morale and a sense of loyalty to your company as it makes them feel appreciated, and you are not simply hiring them to squeeze everything from them and then discard them. Additionally, flexible schedules make it easier for parents with daycare and school obligations to work around them (meaning you don't have to lose a valued employee due to parental responsibilities).
Stock Options
Although stock options might seem like an outdated option, it remains one of the top motivators for employees to stick with a company (as suggested by one of the Bobs in Office Space!) In reality, stock options are a great employee bonus that can provide employees with real financial rewards. When you offer stock options, you allow your employees to own shares of your company at a discounted rate, which tends to translate into an incentive that can help motivate them to work hard and reach their full potential. Moreover, it allows them to understand that their financial success revolves around the business's success.
Generous Health Benefits
If you want to keep your best staff by your side producing results, you need to reward them with very generous health benefits. With inflation soaring and costs rising even for standard household items, health insurance is something everyone can appreciate. This sort of bonus removes the stresses of dealing with health insurance payments and what will happen if they or their family get sick. Plus, with better overall physical health, companies usually experience a boost in productivity. Don't underestimate the value of investing in employees' health...it will pay dividends in ways you can't begin to imagine.
Employee bonuses show your employees you value them. They create stronger bonds that bring more stability to the business. Therefore, you should investigate which type of bonuses benefit your company and plan how to implement them. Not only will you attract better talent to your organization, but you will also retain those who already work with you.
