Using Behavioral Economics to Drive Performance & Engagement - Selecting & Presenting Awards

This is the third of a three-part blog series based on Michelle Smith’s article in PPAI Magazine titled Behavioral Economics. Read her entire article here.

In the previous post of this series, we learned that using the principles of Behavioral Economics in incentive and recognition programs improves employee engagement, motivation and retention. Now let’s talk about using Behavioral Economics to successfully select and present awards to your employees.

How should you decide which rewards to use and how to use them? Factors like an employee’s age, profession and background all play into the impact a reward has on them, but for a truly effective campaign, you should also consider the following subtle but significant variables.

Ease of Selection

A user-friendly rewards system helps keep the incentive program flowing smoothly. The easier the system is to use, the more positive the employee experience. This allows rewards to deliver a larger emotional impact, be remembered longer and produce quantifiable results.

Reward Type

A program that uses a variety of rewards is more effective than those that rely solely on monetary rewards. Incentive programs should offer tangible items and formal recognition more frequently while using experiential rewards, such as trips or spa treatments more sparingly. The former serves as a permanent reminder of appreciation, while the latter delivers shorter intense happiness.

Motivation Type

Cooperative incentives are more effective and valuable than competitive incentives. Consider rewarding top-performing teams instead of having them compete. Also, don’t underestimate the value of rewards that reinforce an employee’s intrinsic motivation or drive to acquire, which creates a long-lasting desire to perform well. And be sure to celebrate reward-earners in a public way - it positively affects productivity.

Personalization

Who gives recognition and how it's presented can impact an employee’s emotional response and ultimately their productivity. Some employees may like public recognition, while others prefer private acknowledgment. Departing from a generic, one-size-fits-all model allows employers to incorporate creativity and personalization into rewards.

Timing

Make a reward more meaningful by surprising the recipient immediately after they achieve a goal. Unexpected recognition has a higher impact compared to one promised in advance.

Desired Impact

Incentive programs that prove employers care about their employees are the most effective. Emotionally meaningful incentives have benefits that extend beyond improving productivity. The more valued an employee feels, the more likely they are to act as brand ambassadors who extoll the company’s virtues to candidates, customers, vendors and the media.

Purpose

Ideally, every incentive program will align with the company’s purpose in some way. If employees believe in the company and its vision, trust their leaders, and develop caring relationships with the people they work with, the company becomes an asset that they will instinctively protect. This makes the employee feel like an owner instead of a renter, and they will act accordingly.

Throughout this series, we have discussed the benefits of using Behavioral Economics in incentive and recognition programs. Activating an employee’s social drives keeps them engaged by connecting them to team members, their personal goals and the company as a whole. Considering the four brain principles of Behavioral Economics when presenting helps you make a lasting emotional impact on employees. Lastly, think about the variables presented in this article when selecting awards. Contemplating each could allow your program to run more smoothly, help employees fell valued and keep them motivated to work for a company that cares.