Eclipse Recruitment recently surveyed a diverse group of business owners and managers to gain insight into the different type of recognition and rewards programmes offered to employees. Reward programmes not only reflect the core values and culture of an organisation but they sit at the heart of employee rention.
These summuarised insights offer a glimpse into current practices and highlight key recommendations for recognising employee behaviours and achievements.
1. Overview of companies surveyedRecognition
2. What benefits or perks does your company provide?
The most common perks across all company sizes are birthday leave and educational benefits. Larger companies offer comprehensive packages, including health insurance and additional paid leave, aligning benefits with employee satisfaction and retention. Company cars and/or fuel cards are available for executive and sales staff in most companies.
3. Do you provide bonuses/commission inaddition to a base salary?
50% of companies provide bonuses to sales staff, highlighting the importance of incentivising sales performance. Diverse approaches (shown in ‘other’) include discretionary bonuses and project-specific rewards for targeted motivation.
4. If bonuses are offered, how are those calculated?
43% of companies use individual performance metrics for bonus calculations, ensuring high performers are rewarded. 22% use fixed salary percentages or amounts, offering predictable and consistent rewards across the organisation.
5. How do you manage overtime worked by employees?
16% of companies offer time in lieu, promoting work-life balance. Only 14% pay an overtime rate, indicating a preference for non-monetary compensation methods like additional leave to manage extra hours.
6. Do you offer KiwiSaver contributions additional to the compulsory 3%?
Of the companies surveyed, just 17% offer a KiwiSaver employer contribution in excess of the compulsory 3%.
For those who do provide an additional contribution, levels ranged from 4% to 6.5%.
7. Do you intend to change/increase remuneration & benefits in the near future?
21% of companies plan to increase remuneration and benefits, with larger firms and those in growth industries like IT and healthcare leading this trend. Meanwhile 54% are unsure and 25% have no plans for changes, with smaller companies showing more hesitation.
8. How is your company reward programme structured?
Ad hoc rewards are common in mid-sized companies, providing flexibility in recognising outstanding contributions. Quarterly awards in manufacturing focus on tangible achievements, reinforcing goal-oriented performance. Below highlights the key elements of reward programmes used by the survey respondents, providing valuable insights into common practices and themes.
Recommendations
Your reward programme reflects the core values and culture of your organisation. Therefore it’s important to recognise behaviours and achievements which demonstrate your company’s values.
Define Clear Objectives
You should primarily establish clear objectives for your reward programme. Our research found typical objectives include: improving employee morale, increasing productivity and revenue, and improving employee tenure.
The effectiveness of your programme will greatly increase if you communicate these objectives to your employees to ensure understanding and buy-in.
Diverse Reward Options
Including both tangible and intangible rewards will appeal to the different personalities within your team.
Think about how you can cater to a variety of motivations. Preferences vary with everyone, from monetary bonuses, additional leave, gift cards, and public recognition.
Show that you care – offering rewards that benefit employee health and wellbeing, such as gym memberships or day spa vouchers, or recognising their life outside work, such as additional time off, can have greater positive effect on your objectives.
Regular and Timely Recognition
Acknowledging achievements soon after they occur maintains relevance and impact.
Be timely with your recognition programme by making them a regular occurrence. Structures such as “Employee of the Month”, quarterly awards and long service awards give employees a goal to reach and something to look forward to.
However don’t be tempted to rush your programme, especially if your employees respond well to public recognition. You can make this special by planning time to hand out certificates or host a morning tea.
Download the Reward & Recognition Survey.