Rewards and recognition 2.0: What does it comprise?
According to data, Millennials will constitute 50% of India’s entire workforce by the year 2020. This generation is driven, passionate and goal-oriented. They try to go above and beyond not just to complete the tasks given to them but also to learn more in the process. It is due to this constant drive and charisma that these employees demand more than just the traditional forms of workplace appreciation. The modern workforce, although extremely self-motivated, gets easily jaded in the absence of material and non-material appreciation for the hard-work that it puts in. In fact, the lack of substantial recognition and rewards is the most common reason for disenchantment towards a job role cited by employees during exit interviews. As more organizations realize the need for retaining top talent, CHROs are looking for innovative ways to raise employee motivation and morale through new-age rewards.
Rewards and recognition 2.0 – What does it comprise?
Millennials thrive on appreciation in the community which is why there is a need for workplaces to rise above traditional rewards and attain the next level. Simply put, it is time for CHROs to launch Rewards and Recognition 2.0 (R&R 2.0). Perfectly suited to the technologically advanced workforce of today, R&R 2.0 is a tech-enabled method of rewarding meritorious employees. It emphasizes on promoting social appreciation and enabling instant rewards that are bolstered with the power of choice. Specifically put, it focuses on digital vouchers and gift cards that can offer instant gratification to employees while also giving them the freedom to choose their own reward.
In the past, employers have been guilty of piling on unwanted presents such as showpieces or household utility items to their employees as rewards. While the gestures are welcome, those gifts are generally not. This is why R&R 2.0 is the best way to offer the most suitable gift to their employees – the gift of choice! The digital age is asserting its influence on employee rewards and recognition programs by making the benefits instant without the involvement of any third party. For instance, CHROs can come up with a point system wherein employees simply receive points via SMS, e-mail or even physically and redeem them for gifts of their choice once they have enough points.
The power of personalized gifting
There’s been a remarkable growth in the popularity of personalised gifting, which allows employers to tailor-make rewards for high performing employees. With a massive range of digital vouchers available on unique O2O platforms like GyFTR that facilitate seamless gifting by allowing instant purchase of gift vouchers digitally, both the employers and employees are in a win-win situation.
The time and money that employers invest while rewarding their employees is significant, so they would want to do everything in their power to make their efforts stick, ensuring a positive effect on employee engagement. The R&R 2.0 programme, focusing on the digital aspect of rewarding also promises a multiplier effect. Since the rewards are now presented in the form of digital vouchers or points, employees, especially the frequent performers who are likely to accumulate more points, will work even harder to facilitate a bigger purchase for themselves at the end of the quarter.
The enthusiasm of the millennial workforce is fierce. The more content they feel, the more motivated they will be to perform better. Thus, the CHROs must lay greater emphasis on their reward strategies, invest smartly and derive the benefits that accompany a motivated team. Happy employees lead to more efficient work and accelerated growth of the organization at large.
According to research conducted by management consulting service Technopak, the gifting market in India stands at around $30 billion. Of this, almost $400 million can be attributed to the digital space. Furthermore, corporate gifting in India stands at a whopping 12,000 crore and is witnessing a robust growth of 200% per year. These impressive numbers along with the massive success of R&R 2.0 and the O2O platforms facilitating digital gifting, are indicative of the fact that the industry will witness accelerated growth in the years to come. As a result of this growth, the ‘gift of choice’ will be bestowed not just upon employees but billions of people across the country.