7 Types Of Employee Rewards That Boost Productivity (2023)

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Curious to know about various Types Of Employee Rewards? Then you must read this guide. Inside you'll find 7 types of notable rewards in 2023. Explore them now

Curious to know about various Types Of Employee Rewards? Then you must read this guide. Inside you'll find 7 types of notable rewards in 2023. Explore them now

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August 11, 2022
7 Types Of Employee Rewards That Boost Productivity (2023)
7 Types Of Employee Rewards That Boost Productivity (2023)

Being rewarded πŸ†is a proven tool for positivity βž•. It can fill you with joy and make your effort feel accounted for. And while HRs and employers often debate employee productivity 🎯 and ways to enhance it, you can achieve it rather effortlessly.Β 

Employee rewards are the fuel that can boost employee productivity, along with a range of other benefits.

With such benefits, companies can enjoy maximum efficiency, better revenues πŸ’·, and higher loyalty, while employees receive recognition, positive reinforcement, and a sense of belonging. It’s a win-win for all!

Let’s walk through the types of employee rewards and how they can help you boost productivity πŸ†™.Β 

Quick Summary

This article will help you understand:

  • πŸŽ—οΈ Why is employee recognition important?
  • 7️⃣ Top 7 types of employee rewards
  • πŸ“ˆ How can employee rewards boost productivity?

πŸŽ—οΈ Why Is Employee Recognition Important? πŸŽ—οΈΒ 

Employee recognition can help employers and HRs achieve company goals πŸ₯… more seamlessly. It helps employees feel recognized and valued for their contributions at work. This has also been proven statistically.

As per a study, 37 percent of people stated that being recognized and rewarded encourages them to produce better work more often. Another research case shows that when employees believe that they are recognized, it can lead to 2.7x more engagement.

READ MORE: Why Is Employee Engagement Important To A Company's Success?

A great way to recognize employees for their hard work is by offering them rewards in a structured manner. Companies can also evaluate their existing reward mechanisms and upgrade them to include perks that are more in demand or in line with employee expectations.

Let’s go through the types of employee recognition and rewards that can help companies yield the best results.

7️⃣ Top 7 Types Of Employee Rewards 7️⃣

There are different types of rewards for employees that organizations can use. However, based on common consensus, the following employee reward categories have shown to work well across industries.Β 

Β 1. πŸ₯° Intrinsic rewards

Intrinsic rewards can also be called non-tangible rewards, something employees cannot see but can feel.

Examples of these include a feeling of belonging, a sense of accomplishment, or respect from supervisors. Learning a new skill or being thanked for a task well done are all types of intrinsic rewards for employees.

2. πŸ’° Extrinsic rewards

Extrinsic rewards, unlike intrinsic ones, you can see and tangibly feel. These often come as salary raises, bonus payouts, gift cards, paid time off, extended offs, and more.

Extrinsic motivators are usually linked to employee performance and are an accepted tool for appreciating team members.

3. πŸ’΅ Monetary rewards

As the term suggests, monetary rewards are a form of financial reward πŸ€‘. This is over and above the monthly salary and aims at improving the financial wellbeing of the employees. Typical instances of monetary rewards include bonuses, salary hikes, and more.

4. πŸ‹οΈ Non-monetary rewards

Non-monetary rewards are non-financial in nature but can still help you reap great results. These include perks such as gym memberships, wellness subsidies, and health coverage πŸ₯. Although underrated, these rewards heavily impact employee productivity.

🟒 At Loop, we enable you to offer non-monetary rewards to employees with our comprehensive group health insurance plans. Unlike regular group plans, our schemes entail mental health counseling at zero cost, complimentary, access to wellness events, and a lot more! 🟒


Employee healthcare handbook

Employee healthcare handbook

A quick and easy-to-read guide for implementing employee benefits that work for you and your organization


5. 🎯 Performance-based rewards

Performance-based rewards are directly linked to the performance of an employee. This is based on an evaluation of the effort employees make and the skills each team member displays.

Instances of it include paycheck raises given based on performance, etc. These rewards are usually a part of the company’s performance management plan.

6. 🏒 Membership-based rewards

Membership-based rewards, unlike performance-based rewards, are linked to the employee being part of a team or the organization.

They are presented as benefits and services such as the standard annual Christmas πŸŽ„ bonus, company offsites, team lunches πŸ• , ergonomic furniture subsidies, etc. Work anniversary celebrations and awards are also a type of membership-based reward.

7. πŸ¦„ Non-conventional rewards

Employee recognition ideas other than the above include peer-to-peer recognition, public recognition such as the wall of fame mentions 🧱, social media shoutouts πŸ”Š, company-wide announcements, etc.

You can provide these via a one-stop employee recognition system or platform. Additionally, you can also provide less traditional types of reward systems for employees, such as flexible work arrangements 🏑, professional development opportunities πŸͺ΄, etc.

πŸ“ˆ How Can Employee Rewards Boost Productivity? πŸ“ˆ

Providing different types of rewards and recognition for employees can help them feel motivated and develop a better relationship with the organization. It also helps companies boost productivity as explained below:

1. Employee rewards help organizations keep employees engaged. Higher employee engagement can, in turn, contribute to better work productivity πŸ”.Β 

2. Employee rewards create a happy 😁 workforce. Employees perform better when they’re happy, and so play a part in the overall company productivity.

3. Employee rewards create an atmosphere 🌀️ of healthy competition amongst team members. This incentivizes them to do better and improve the quality of their work πŸ“š.

4. Employee rewards are a marker of good company culture. They assist organizations up their reputation and 🧲 attract better talent, thus increasing productivity in the long run.

5. Employee rewards such as wellness subsidies and health coverage β€οΈβ€πŸ©Ή enable employees to stay fit and financially secure in times of contingencies. This helps reduce absenteeism and thereby enhances productivity.


Workplace wellness playbook

Workplace wellness playbook

Effective and easy to implant strategies to reduce absenteeism

➰ Health Reward For Employees With Loop ➰

Organizations must recognize employees and adequately reward them for their efforts. This can enable them to earn the above-mentioned advantages, such as enhanced work productivity, better revenues, and improved company reputation.

Boost Productivity by 2X


From a health perspective, 🟒 Loop can be your partner when it comes to rewarding employees.

Our holistic group health insurance plans βž• come with a host of added rewards and benefits for employees. These include unlimited doctor consults 🩺 for both mental and physical ailments, access to complementary wellness sessions that are conducted by industry experts, quick aid in case of hospitalization πŸ₯, and a lot more.

To enroll in our comprehensive group health insurance plans, our experts can help. Contact us today!

7 Types Of Employee Rewards That Boost Productivity (2023)
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