20 Employee Incentive Program Ideas to Boost Engagement

As any HR pro knows, employees are the lifeblood of every business. If your team is unhappy, productivity slows, employee retention suffers and the company’s bottom line plummets.

While employee incentive programs do require an investment, what’s far more expensive is employee turnover — and the research plainly shows that an effective employee incentive program dramatically helps the bottom line for employers.

What to Include in an Employee Incentive Program

Today’s workforce wants far more from their workplace than simple financial incentives. So what does that look like?

Here are 20 employee incentive program ideas to keep employees happy and cultivate a positive work environment.

Monetary Incentives

While compensation may no longer be the main reason professionals choose a job, it still plays a significant role. When employees feel fairly paid for their contributions, they’re more likely to stay engaged and perform at a high level.

Because of this fact, competitive pay is an important element of any employee incentive program.

Non-Monetary Incentives

Not every employee incentive program involves money. Non-monetary rewards are becoming more and more popular. Although everyone appreciates a good paycheck, millennials prioritize work-life balance over financial reward. And considering millennials are the largest generation in the U.S. labor force, companies must keep up by offering incentives beyond pure financial gain.

Employee recognition comes in many forms. Offering flexible work arrangements and remote work options gives employees more autonomy to work in ways that best suit their unique skill sets and work habits.

Other smaller perks — such as in-person praise, cross-company recognition, awards and learning opportunities — can also go a long way in making team members feel valued and appreciated. Don’t underestimate the power of simple positive reinforcement as a valuable part of your employee incentive program.

Employee Incentive Program Ideas

1. Financial Bonuses

Reward a job well done with a cash bonus. Increased salaries and financial initiatives can enhance employee performance. For a bigger impact, consider adding long-term financial incentives, such as stock options and profit-sharing, to your employee incentive program.

Giving high-performing employees a stake in company profits provides them with a sense of personal ownership. They can see how their personal effectiveness and efficiency in their role boosts the company’s — and therefore their own — financial success.

Long-term financial incentives of this kind help create a company culture of accountability and dedication, and they also boost employee retention. Employees are much less likely to leave your company if they have a personal financial stake in it. 

2. Customized Trophies and Awards

Trophies and awards are traditional in an employee incentive program. Create personalized trophies or plaques to celebrate individuals on your team. This is an ideal way to recognize milestones with the company, such as one year, five and 10 years.

Incentives can go well beyond sales quotas and productivity. To promote a positive work culture that’s built on cooperation rather than competition, make sure to incentivize all traits you value in employees. You might recognize employees for their:

• Long-term commitment to the company
• Ongoing effort to make new employees feel welcome, and
• Commitment to going the extra mile.

3. Peer Recognition

An employee incentive program that allows co-workers to recognize their peers establishes a positive company culture and promotes a sense of camaraderie. One employee’s success should be the team’s success. Implement a system where employees can regularly congratulate and give kudos to team members. Consider an additional process that allows employees to nominate their colleagues for outstanding contributions, both big and small.

This type of recognition enhances mutual appreciation and respect among team members, which, in turn, boosts engagement and company dedication.

4. Spotlight on Social Media

An employee incentive program can — and should — include public praise. Highlight employees on your company’s social media channels, such as LinkedIn, showcasing their contributions to the organization and giving them public recognition.

This also helps external engagement, as clients and community members can put a face to the name of the people within your organization and learn why they’re so good at what they do.

5. Company Swag

While company swag should never be the only component of your employee incentive program, it’s a great way to surprise your team while building your company’s brand recognition.

Don’t forget about remote employees. A package in the mail with a brand-new swag item will brighten their day. Some office swag ideas include:

• Sticky notepads
• Journals
• Tote bags
• Water bottles
• Mini coolers
• Bluetooth speakers
• Power banks
• Computer screen cleaner, and
• Socks.

6. Professional Development Opportunities

Most employees don’t want to remain in their current roles forever, and an employee incentive program that includes a budget for professional development opportunities gives workers a chance to grow at your company. Plus, it will keep them dedicated to your organization while also providing you with engaged employees ready to take on more responsibility.

One popular option for employee incentive programs: Provide employees with a budget for self-directed learning. This kind of reimbursement allows them to choose courses, books, conferences or resources that align with their professional development goals.

7. Skill Certifications

Skill certifications boost an employee’s knowledge and enhance their confidence; plus, they improve their credibility and reputation in the eyes of your clients. That said, they also come with a price that may not be in every employee’s budget, making it a great option to include in your employee incentive program.

Offer to cover the costs of industry-recognized certifications for employees who demonstrate a commitment to enhancing their expertise. If it’s something the employee is passionate about pursuing, but the full cost isn’t within your budget, consider paying for a portion of the certification cost.

This commitment to your team’s development will promote a continuous improvement mindset and contribute to a positive company culture.

8. Flexible Work Hours

Flexibility is an in-demand perk, so it’s a good option for your employee incentive program.

Allowing employees to set their own work schedules — within reason — accommodates their personal preferences. When employees have control over their own workday, they can work when they feel they are at their most productive. For example, not everyone is an early morning person, and some feel they do their most productive work in the evening.

With flexible work hours, the employee’s work-life balance, productivity and engagement improve.

9. Remote Work or Hybrid Work Options

Remote or hybrid work options are valuable elements of any employee incentive program.

Many employees don’t need to work in the office from Monday through Friday to do their jobs. Employees know this is true now more than ever, so the more their workplace demands they remain in the office as much as possible, the less engaged they will feel — and the more likely they’ll start to look for work elsewhere.

This is why remote work options are a great incentive for employees, as they reduce burnout and boost work-life balance. Plus, allowing employees to work from home or wherever they feel most comfortable shows your team you trust them.

10. Balance Days

Looking for an employee incentive program idea that shows you appreciate your employees?

As your employees reach certain work milestones or continue to go above and beyond, consider offering them balance days to use throughout the year.

Balance days are additional paid days off beyond the regular vacation and sick days allotted to employees. Balance days allow employees to book days off in order to focus on and prioritize their own wellness.

Ensure your employees know that these days are not meant to be taken in place of the sick days they are already entitled to. As a part of your employee incentive program, balance days should focus on renewal and wellness, no questions asked.

11. Employee Welcome Gifts

Adding welcome gifts to your employee incentive program starts the working relationship off on a good note.

The most tenuous time in an employee’s tenure with your company is their first few weeks. An employee welcome package illustrates right off the bat that your company goes above and beyond to make every team member feel welcomed and appreciated.

A welcome pack can include company swag and essential items to set up their new desk, whether at home or in the office, such as charging cables, wireless chargers, notepads, sticky notes, a water bottle and stationery. You might also consider including gift certificates for nearby local restaurants and cafes — this will help new employees familiarize themselves with the neighborhood while supporting local businesses in your community.

12. Wellness Budget

As any HR professional knows, healthy employees are productive employees. But it can be tough to find the time or the resources to exercise consistently, so another employee incentive program idea is to offer a fitness budget to employees to enhance their wellness.

This budget could be used by each employee for whatever wellness activity or tools they prefer. For example, they might use the budget allotment to join a fitness class, get a gym membership, buy a fitness tracker or add an exercise bike to their home office.

This type of incentive shows how much your organization values the health of its team.

13. Nap Pods or Relaxation Spaces

Who hasn’t wanted to take a nap at work? While this may sound like a tough sell to leadership, keep in mind that research has proven short naps can enhance memory and mental functioning, as well as improve attention, reaction time, alertness, productivity and creativity.

As an HR pro, you know the kind of hard work your team puts in. A dedicated area in the workplace for short breaks, meditation or power naps can promote stress relief and boost cognition. Sure, it may sound like one of the more out-there employee perks, but the reality is that dedicated spaces like this, when managed with care, can help employees stay focused, engaged, and both physically and mentally healthy at work.

14. Stipend for Home Office

As remote and hybrid work has increasingly become the norm, home office stipends might be a valuable way to expand your employee incentive program.

Consider offering a one-time or recurring stipend for employees to outfit their home office in a way that makes them feel most comfortable and best optimizes their productivity.

This is especially helpful for remote teams, as members may not have a space in their homes conducive to work. And while they could venture out to a cafe, Wi-Fi is often spotty, and co-working spaces come with a fee and a crowd.

Offering a stipend for a home office enables employees to set up a space free from distraction where they can achieve deep focus. This is a major incentive for employees who struggle to be productive when they’re surrounded by other people.

15. Team-Building Sessions

Level up your employee incentive program by investing in fun team-building activities. You could take the team paintballing, go-karting or to an escape room. An escape room comes with the added benefit of encouraging collaboration and problem-solving skills.

Teamwork is an invaluable skill to cultivate among employees. Team-building sessions in fun, casual environments also allow team members to see each other in a different light and get to know each other outside of work. Instead of Dave, the IT guy, it’s Dave, the guy who loves puzzles and has two golden retrievers, Air and Bud.

Here are 13 reasons why team building is important, along with team-building ideas and examples you can implement in your workplace today.

16. Company Retreats

Company-wide retreats, when executed effectively, can be an engagement event that everyone looks forward to. These events improve the employee experience by providing some much-needed time off while also promoting employee well-being and affording employees the opportunity to communicate as friends outside of work. Plan off-site adventures such as hiking, visiting museums, attending sports events or staying off-site at a hotel for training to foster a sense of camaraderie among teammates.

Company retreats give everyone something to look forward to and further bond your team, which are both excellent incentives to work hard and stay with your company.

These events are often the only time remote workers get to meet each other in person, which can be an invaluable experience for remote teams, making them a crucial part of well-rounded employee incentive programs.

17. Office Parties

Office parties can reward employees while allowing them to let their hair down (just a little). They foster a sense of community and belonging, relieve stress, and strengthen connections between team members. Plus, they’re fun!

To get the party really going, consider renting a karaoke machine and offering incentives for getting your co-workers behind the mic. A team that plays together stays together!

Office parties can also extend to your client/customer base and community to become another form of outreach. Consider a yearly holiday party, company anniversary party, or summer party that gets your team as well as your community involved. Who does your company interact with who would feel special to receive an invite to your holiday party? Consider freelancers, vendors, delivery people, cleaning staff and neighboring businesses.

If you have a remote team that isn’t able to meet in person, consider sending everyone party materials, such as drinks, food and group games that you all can play together online in celebration of an occasion or company milestone.

One caveat: Be careful how you handle alcohol at any company event. You can find guidance here: Alcohol at Work: What HR Should Know.

18. Catered Lunches

Everyone appreciates delicious food. Give your team a culinary treat by providing a lunch catered by a local business. Get feedback from your team about food restrictions and preferences. If the team can’t reach a consensus on what to order, compromise and order the second most popular option next time.

The excitement of a delectable meal is a major incentive for employees and is sure to raise morale. Plus, it means your team doesn’t need to spend time in the morning making their own lunch, giving them more time to spend with their family, exercise, meditate or just sleep in.

19. Monthly Book Club

Think outside the box when developing your employee incentive programs. Consider starting a monthly company book club where employees can read and discuss books related to personal development, leadership or industry trends.

As a business, you can support this program by building up a workplace library or by giving each employee a budget for books and audiobooks.

This can help cultivate a company culture of continuous learning and improvement and keep employees current with the ever-evolving business landscape. This can do more than just boost engagement; it can also inspire new leaders within your organization with an eye on the future.

20. Referral Programs

Hiring quality employees who fit your company culture isn’t easy. And who knows your company culture better than your current employees? Incentivize your team to do the recruiting for you with referral programs. Employee referrals have been proven to have the highest ROI of any recruiting method.

Reward your employees for recommending new talent. You can also offer a bonus depending on how far the candidate gets in the hiring process.

Keep Your Team Incentivized

Employee incentive programs boost employee engagement, retention and morale. Seek feedback from your team about the kind of incentive programs they’re most interested in — and listen closely. If employees aren’t excited by the program, there is no point in pursuing it. Don’t be afraid to think outside the box when it comes to employee benefits.

As an HR pro, it’s up to you to help implement these recognition programs for employees to keep talent with your company and ensure your co-workers are content with their roles and performing at their best.

If you want more ideas, check out this resource on HRMorning: Employee Recognition: HR’s Ultimate Guide.