The world of work has changed permanently. Going forward, most workers whose work can be done remotely will work off-site more often. This necessitates a review of incentives, rewards, and recognition systems, especially those aimed at motivating remote and hybrid workers. Organizations that fail to adjust their tangible and intangible incentives will almost certainly suffer consequences.
Employees enjoying a well-earned incentive trip to Ireland | August 2022
Incentive design is a critical part of any organization’s transition to a remote or hybrid workforce. The intangible benefits of work in these environments, such as increased camaraderie, collaboration, trust, and appreciation, are enhanced when employees are rewarded for their efforts. Incentive program designers should lead the way in using tangible and intangible rewards to promote the behaviors and actions that bring and keep the workforce together.
Key results from an Incentive Research Foundation survey of 1,000 employees and managers conducted in March 2022 reveal the following:
- Only 5 of the 424 managers who responded to the survey said they have no concerns regarding remote work. Most managers and employees are concerned about isolation, communication challenges, and reduced exchange of ideas and information. In-person events and experiences will help foster great teamwork, collaboration, and awesome workplace culture.
- Managers matter. One-to-one appreciation from a direct manager is the most motivating form of recognition, according to our respondents.
- Among intangible rewards, employees want interesting work, growth opportunities, and autonomy, in that order.
- Among tangible rewards, employees want cash, gift cards, gifts, points, and motivating & memorable travel experiences.
- For increasing engagement and retention specifically, respondents rank in order: compensation, work environment, and “other tangible incentives and rewards” as most vital. Among intangible incentives, they value autonomy, interesting work, growth opportunities, and appreciation/recognition.
- Among the managers and employees who have experienced specific reward efficacy for remote workers and believe rewards have a specific role in addressing their concerns, granting more autonomy, flextime, and paid time off were common responses. Many also cited points, personal gifts, group meals/celebrations, and peer-to-peer recognition programs.
Tangible vs. Intangible Incentives
When it comes to incentives, there are two primary types: tangible and intangible. Tangible incentives are physical rewards that an employer can give to an employee, such as a bonus, a raise, or an incentive travel program. Intangible incentives are non-physical rewards that an employer can give an employee, such as recognition, flexible work arrangements, or training opportunities.
The right mix of tangible and intangible incentives will differ from organization to organization and even from team to team within the same organization. What works for one company might not work for another. The key is to experiment and find what motivates your employees the most. For example, if you have a team of remote workers struggling with communication, you might try giving them additional training or development opportunities to improve their skills. Or, if you have a team of remote workers struggling with burnout, you might try offering them more flexible work arrangements to manage their time and workload better.
Conclusion
Organizations need to be aware of the different types of incentive programs available to them and the pros and cons of each type. They also need to experiment with different combinations of incentive programs to find what works best for their employees. With the right mix of incentive programs, organizations can ensure that their remote and hybrid workers are motivated, engaged, and productive.
