Offering rewards to employees can have many benefits, such as increased motivation and productivity levels, retention of talent, enhanced job satisfaction, improved employee engagement, fostering a positive work culture, boosting team morale, among others.  

Companies can have a more motivated, satisfied, and high-performing workforce by creating an effective reward system that ultimately contributes to overall organisational growth and success. Employees, who receive rewards and recognition, are 20 times more likely to be engaged than employees who receive poor reward and recognition, according to a Gallup and Workhuman study. 

The study highlighted that employees, who feel valued at the workplace, are more connected to their company’s culture and are less likely to seek another job. 

Further, a well-designed recognition and reward programme can help drive more than 10% increase in average employee performance, said a Gartner study. Such programmes can influence performance by boosting their confidence. However, it requires companies to develop such programmes with utmost precision, catering to employees' needs and preferences. 

Rewards can have different meanings for employees depending on the type of work models they are in, as each model has unique challenges, motivations, and expectations. Here's how rewards might be perceived across different work models.

White-collar workers: They are often engaged in office-based or knowledge-driven jobs, and may find rewards associated with both intrinsic and extrinsic motivators, such as salaries, bonuses, stock options, and profit-sharing plans. 

For them, promotions, getting leadership roles, or career development programmes are significant rewards. Acknowledgement from peers, supervisors, or industry recognition are key rewards, especially in the corporate world. They often value flexibility, like the option to work remotely, have flexible work hours, or leaves for vacation. They often seek opportunities for further studies or professional certifications.

Blue-collar workers: Rewards are often focussed on tangible, immediate, and concrete benefits for them. They might put more focus on monetary compensation for instance, higher hourly wages, overtime pay, and bonuses for completing difficult and dangerous tasks. They tend to value long-term employment stability, especially in industries like manufacturing and construction and may also look for access to good healthcare facilities and safety measures. Although they may work for long hours, they value time off, leaves, and flexible hours.

Entrepreneurs: They may see rewards in a different way as they take both risks and rewards that are more self-determined. The reward is directly tied to the profitability of the business, such as earnings, growth, and long-term sustainability. The autonomy to make decisions, the sense of ownership, and the satisfaction of creating something from scratch are often rewards. Building a brand, being recognised for innovation, or receiving media attention or awards can serve as rewards. 

While some work long hours, the flexibility to set their own schedule is often a reward. Many entrepreneurs are motivated by the idea of creating something that outlasts them — whether a company, a product, or a service. 

Gig workers: They work independently and value rewards that give them flexibility and control over their own careers, as well as tangible benefits related to their non-traditional employment setup. 

Direct payments for services rendered, often tied to project completion. They may value being able to set their own rates and choose clients. One of the biggest rewards for gig workers is the ability to control their work schedule and work from anywhere. 

The opportunity to work on diverse projects can be rewarding, especially for those in creative, consulting, or tech fields. Positive reviews, referrals, and long-term relationships with clients are important rewards, as they often lead to continued work and opportunities. Gig workers are paid as per task or project completion, so the ability to earn more is based on performance. 

Service industry workers: For workers in customer-facing, service-based roles, rewards are often associated with their day-to-day performance and how they interact with customers. Their key rewards might include hourly wages, tips, and performance-based bonuses.The opportunity to earn extra income through tips is a significant factor. 

Positive feedback, and acknowledgment for service is important for them. A stable work schedule and dependable employment is highly valued by them. The social aspect of the job, including positive relationships with customers, can be a reward. Many service workers value opportunities to work for managerial or supervisory roles.

Creative professionals: They often place significant value on rewards related to personal achievements and recognitions. For them, rewards might focus on salaries, performance bonuses, and equity or stock options. Competitive pay packages are common in industries like tech. Creative professionals highly value the ability to work on interesting projects and fully control their work. 

Public recognition, awards, or recognition from peers can be a significant reward for creative professionals. Access to cutting-edge technology, workshops, and professional development opportunities are important. Majority of these professionals like to work remotely, take off for vacation, and have a flexible schedule.