Description: Discover effective employee incentive programs that enhance employee engagement and performance. Explore our top 15 employee incentive programs ideas and elevate your workplace today!
In today’s competitive business landscape, employee incentive programs play a crucial role in motivating employees, boosting employee engagement, and improving productivity. For global teams, designing effective employee incentive programs that cater to diverse cultures, preferences, and employee needs is essential for business success.
Whether through monetary incentives or non-monetary incentives, the right employee incentive programs can encourage employees to exceed targets, foster team rewards, and create a positive company culture.
At PraisePal, we help HR leaders streamline their employee incentive programs by offering a customizable employee recognition and rewards platform that works for their global teams.
Here's some examples:
- Case study: How Wallex Scaled an Open Culture of Employee Recognition, Even in the Most Remote Places
- Case study: 1 Team, 18 Cities: How This 500 Global Leader Built a Remote Culture Surrounding Connection & Appreciation
- Case study: How TikTok Uses Public Recognition & Rewards To Build An Innovative Culture That Grows With Its People
Our global rewards catalog is inclusive and diverse, allowing employees to choose meaningful rewards they like.
What is an employee incentive program?
Incentives provide the best opportunity for acknowledging the employee's exceptional workplace performance that exceeds expectations. These may involve exceeding sales targets, providing innovative solutions, providing excellent customer care, or doing anything to help others. Top performers may receive financial incentives or gift cards in addition to paid holidays or career training. HR professionals can implement employee incentives annually or monthly.
What are the roles and benefits of employee incentive programs?
Employee incentive programs play a crucial role in enhancing organizational performance by motivating employees, fostering a positive work culture, and aligning individual goals with company objectives. These programs offer numerous benefits, both for employees and employers, including:
Employee retention and loyalty
Effective employee incentive programs help retain top talent and foster loyalty among employees. Employee incentive programs can decrease turnover rates by 14% to 26%.
Improve productivity rates
Incentives are often used to boost productivity and generate more revenue. A proper incentive programme could boost productivity considerably. Generally speaking, employees are rewarded for their hard work by feeling rewarded and valued more. Incentive programs can increase employee productivity rates by 22%.
Boost employee morale and motivation
Employee engagement and motivation play a key role in determining measurable success. Gallup says workers feel engaged or motivated in doing tasks and can increase productivity if it's their passion for work. Incentives like these are useful. Using incentives to match your team needs can be very beneficial. More focus on small details in the meeting and briefing, less absenteeism, and a greater enthusiasm in teams for the goal. Increased engagement will improve business performance.
What are the most common examples of incentives?
Employee incentives can be monetary or non-monetary and are designed to motivate employees by rewarding their performance and contributions. Here are the most common examples of incentives:
- Bonuses: These include performance-based bonuses, spot bonuses, and referral bonuses, which reward employees for achieving specific goals or milestones.
- Public Recognition: Acknowledging employees' achievements through company-wide announcements, awards ceremonies, or an employee recognition platform.
- Customized Rewards: Tailoring incentives to individual preferences, such as gift cards, personalized items, or unique experiences that cater to each employee's interests.
- Profit Sharing: Sharing a portion of the company's profits with employees to align their interests with the company's success.
- Stock Options or Equity: Offering employees the opportunity to purchase company shares, giving them a stake in the company's future growth.
- Commission-based Incentives: Providing additional monetary rewards based on sales performance or business development achievements.
- Team Retreats: Organizing offsite events to foster teamwork and boost morale.
- Flexible Scheduling: Allowing employees to adjust their work hours for better work-life balance.
- Extra PTO: Offering additional paid time off as a reward for exceptional performance or years of service.
- Tuition Reimbursement: Supporting employees' professional development by covering the costs of education or certification programs.
What are must-have employee incentive programs?
Employee incentives help increase motivation in the job market, and boost motivation. The program is creative and effective and makes staff feel appreciated and active. Here are some must-have employee incentive programs:
- Rewards and Recognition: Programs that acknowledge and reward employees for their achievements and milestones.
- Referral Programs: Incentives for employees who refer new hires, often in the form of bonuses or other rewards.
- Professional Development: Opportunities for employees to enhance their skills through training, workshops, or education reimbursement.
- Profit Sharing: Programs where employees receive a portion of the company's profits, aligning their interests with the company's success.
- Health and Wellness: Initiatives that support employees' physical and mental well-being, such as gym memberships or wellness workshops.
- Tuition Reimbursement: Financial support for employees pursuing further education or certifications.
- Bonuses and Raises: Monetary incentives for performance, milestones, or longevity with the company.
- Fun Gifts: Branded merchandise or other enjoyable items that foster a sense of belonging and appreciation.
15 employee incentive programs ideas to improve engagement for global teams
Employee incentive programs have great benefits, but how can you choose the right strategy? Here are 15 innovative employee incentive programs ideas perfect for global teams in 2025:
1. Employee recognition platforms
How it works: Implement digital employee platforms like PraisePal where employees and managers can recognize and reward achievements in real-time.
Example: A global IT firm uses a recognition platform where employees can give “kudos” to colleagues, redeemable for various rewards.
Outcome: Enhances employee engagement and makes employees feel valued, while automating program administration for HR with data analytics and reports.
Employee recognition platforms provide a structured and visible way to celebrate achievements. These platforms can integrate with other tools like Slack and Microsoft Teams, making it easy for employees and managers to recognize contributions, no matter where they are located.
2. Social recognition programs
How it works: Create recognition platforms or recognition programs where employees can publicly recognize and appreciate their peers.
Example: A multinational company uses a shared Microsoft Teams channel where employees can give “shout-outs” to colleagues for their hard work.
Outcome: Boosts employee morale and fosters a culture of appreciation and social recognition.
Social recognition programs create a positive feedback loop within the organization. By encouraging peer-to-peer recognition, these programs help build a supportive and inclusive company culture, especially to engage remote employees. Recognition through peer awards fosters a culture of collaboration and appreciation among employees. It increases motivation to work harder as workers who get societal recognition have 3.7 times higher motivations and 55% less desire for new jobs.
2. Employee recognition platforms
How it works: Implement digital employee platforms like PraisePal where employees and managers can recognize and reward achievements in real-time.
Example: A global IT firm uses a recognition platform where employees can give “kudos” to colleagues, redeemable for various rewards.
Outcome: Enhances employee engagement and makes employees feel valued, while automating program administration for HR with data analytics and reports.
Employee recognition platforms provide a structured and visible way to celebrate achievements. These platforms can integrate with other tools like Slack and Microsoft Teams, making it easy for employees and managers to recognize contributions, no matter where they are located.
3. Points-based employee incentive programs
How it works: Implement a system where employees earn points for achieving goals, which can be redeemed for rewards.
Example: A global sales team uses a points-based system where employees earn points redeemable for rewards through successful candidate referrals.
Outcome: Encourages consistent performance and provides various rewards to suit individual preferences.
Points-based employee incentive programs offer flexibility and variety, allowing employees to choose rewards that matter most to them. The employee earns points on the achievement of a particular activity. This personalized approach can significantly boost employee engagement. Rewards programs reward employees for goals, completed projects and outstanding performance.
4. Gamification Programs
How it works: Use game-like elements such as points and badges to motivate employees and reward desired behaviors.
Example: A global sales team uses a gamified platform where employees earn points for closing deals, which can be redeemed for prizes or monetary rewards.
Outcome: Increases employee motivation and fosters a sense of competition and achievement.
Gamification programs tap into employees’ natural desire for competition and achievement. By turning tasks into games, these programs make work more engaging and fun, leading to higher job satisfaction and improved productivity.
5. Team-based incentives
How it works: Create team rewards for collaborative achievements, such as completing a project or hitting a milestone.
Example: A global marketing agency rewards teams with a group dinner or team incentive trips.
Outcome: Strengthens collaboration and company-wide participation.
Team-based incentives encourage collaboration and camaraderie among employees. By rewarding collective efforts, these programs foster a sense of unity and shared purpose within the organization.
6. Public recognition and awards
How it works: Recognize employees’ achievements through company-wide announcements or awards.
Example: A global retail company holds quarterly awards ceremonies to honor top performers.
Outcome: Enhances social recognition and makes employees feel valued.
Public recognition programs celebrate employees’ contributions and achievements, fostering a culture of appreciation. This not only boosts employee morale but also encourages others to strive for excellence. A great way to give your employees recognition is through awarding incentive programs that track employee contributions in realtime.
7. Rewards-based incentive programs
How it works: Design programs where employees earn rewards for demonstrating desired behaviors or achieving specific milestones.
Example: A global logistics company rewards drivers with gift cards or travel incentives for maintaining excellent safety records.
Outcome: Encourages positive behaviors and motivates employees to exceed expectations.
Rewards-based programs provide tangible incentives for employees to meet or exceed performance goals. By aligning rewards with desired behaviors, these programs drive employee performance and contribute to business success. Employees with access to reward marketplaces are 61% more likely to feel a strong sense of belonging.
For more, see how you can create a customized reward marketplace on PraisePal for your employee reward programs
8. Engagement and teamwork incentives
How it works: Set clear, measurable objectives that require collaboration across different departments or locations, with rewards based on collective performance.
Example: A global marketing team set innovative incentives to encourage employees to submit creative ideas that improve business operations.
Outcome: Significant boost in collaboration and overall team performance, leading to increased employee engagement and organizational success.
Engagement and teamwork incentives are designed to foster collaboration and unity among global team members by rewarding collective achievements and efforts. These incentives encourage employees to work together towards common goals, promoting a culture of mutual support and shared success. Use employee engagement tools like PraisePal to help encourage collaboration and teamwork across departments.
9. Training and development program incentives
How it works: Provide access to courses, certifications, or workshops to support professional growth.
Example: A global consulting firm partners with Cambridge University Press to offer free online courses for employees.
Outcome: Encourages desired behaviors like continuous learning and improves engagement.
Investing in employees’ professional development through training and development program incentives not only enhances their skills but also shows that the company values their growth. This can lead to higher job satisfaction and prepare employees for future leadership roles within the organization.
10. Monetary incentives and cash bonuses
How it works: Reward employees with monetary incentives for achieving or exceeding specific targets.
Example: A software company offers cash bonuses to sales executives for exceeding sales targets for their new software.
Outcome: Drives employee engagement and aligns incentives with predetermined targets.
Monetary incentives and cash bonuses provide immediate financial rewards for exceptional performance, making them a highly effective way to motivate employees. They are particularly useful for driving short-term goals and exceeding targets. Commission-based compensation directly links effort to reward, enhancing productivity and profitability. However, be careful when using monetary incentives to motivate employees, as they can lead to employees focusing on short-term results without consideration of the greater company mission or customer care.
11. Profit sharing programs
How it works: Distribute a portion of the company’s profits among employees based on their contribution to business operations.
Example: A global tech firm shares 10% of its annual profits with employees, ensuring employees feel valued and aligned with company goals.
Outcome: Increases employee satisfaction and overall productivity.
Employee profit sharing gives employees the opportunity to contribute to their retirement accounts or direct payouts. Employer contributions can be adjusted according to earnings and provide flexibility in managing costs. Profit sharing also helps employees see themselves as owners, boosts loyalty and inspires them to contribute to achieving company goals.
12. Non-Monetary Rewards and Lifestyle Perks
How it works: Offer various rewards like extra vacation days, gift cards, or personalized gifts.
Example: An e-commerce company gives employees an extra day off for their birthday.
Outcome: Increases job satisfaction without relying solely on financial rewards.
Non-monetary rewards provide meaningful recognition that goes beyond financial incentives. These rewards can be tailored to individual preferences, making employees feel valued and appreciated. The right incentive program can increase productivity by up to 44%.
Learn how TikTok's team uses PraisePal to offer non-monetary incentives rewards to improve employee engagement
13. Travel incentives
How it works: Reward top performers with all-expenses-paid trips or travel vouchers.
Example: A sales team that exceeds sales targets receives a weekend getaway to a luxury resort, where they can bring their families.
Outcome: Boosts employee's motivation and fosters healthy competition among team members.
Travel incentives offer employees the chance to experience a rewarding experience while achieving a specified goal. In some cases this incentive involves paid trips for individuals or teams achieving pre-determined targets at specific times of time. Travel incentives are a powerful way to reward employees for their hard work while providing them with memorable experiences. These incentives can also serve as a break from routine, helping employees return to work refreshed and re-energized.
14. Employee Stock Options
How it works: Offer employees shares in the company as part of their compensation package.
Example: A startup provides stock options to individual employees based on their tenure and performance.
Outcome: Increases employee loyalty and motivates employees to contribute to long-term success.
Employee stock options give employees a stake in the company’s future, fostering a sense of ownership and long-term commitment. This can be particularly effective in large firms looking to retain top talent.
15. Flexible employee benefits
How it works: Allow employees to customize their benefits package to suit their personal needs, such as choosing between childcare support, gym memberships, or additional vacation days.
Example: A global tech company offers a flexible benefits platform where employees can allocate a set amount to the perks they value most.
Outcome: Increases employee satisfaction by addressing diverse employee needs.
Description: Flexible benefits empower employees to tailor their compensation to their unique circumstances. This personalized approach can lead to higher job satisfaction and decreasing turnover rates.
For more, see how PraisePal helps you create a flexible employee rewards program, with automated delivery of 1,000 gift card rewards worldwide.
Conclusion of Effective Employee Incentive Programs
By implementing some of these 15 employee incentive programs, your global team can achieve higher job satisfaction, increasing productivity, and a stronger company culture in 2025 and beyond. For HR professionals designing incentive programs for global teams, understanding cultural differences and employee needs is key. By tailoring programs to include financial rewards, social recognition, and professional growth, companies can create a motivated, engaged workforce that drives business success.
Why Employee Incentive Programs Work
Effective employee incentive programs are not just about financial incentives; they also focus on non-monetary incentives that address employee needs. By combining monetary rewards with intrinsic motivation, companies can boost employee engagement, improve productivity, and reduce turnover rates. Whether through cash bonuses, professional development opportunities, or team rewards, such incentives ensure employees feel valued and aligned with company goals.
Best Practices for Implementing Employee Incentive Programs
What are the most effective incentive programs best practices? Incentives should be designed to avoid unintended consequences and ensure alignment with desired outcomes. Here are a few ways to improve your employee incentive programs.
Identify the right types of incentives
Both intrinsic and extrinsic incentives can be effectively used within the workforce, education, and personal life.
An intrinsic incentive is when a person is motivated to act in a certain way for their own personal satisfaction without seeking any external reward. Experts believe intrinsic incentives are stronger motivators compared to extrinsic incentives as they increase employees' work engagement and genuine enjoyment of work. Intrinsic motivation tends to decrease when individuals are offered too many extrinsic rewards. Intrinsic incentives are useful in increasing one's empowerment, utility level, and autonomy.
Monetary incentives can crowd out intrinsic motivation, reducing an employee's natural desire to perform well. Employees find non-monetary incentives more memorable than monetary incentives because they are distinct from regular pay. Non-monetary incentives tend to promote long-term commitment and loyalty among employees.
Collect employee feedback
Employee Feedback is crucial for the success of incentive programs. It involves actively soliciting and incorporating feedback from employees to understand what motivates them and what improvements can be made to existing incentives. Regular surveys, focus groups, or open forums can help gather insights on how well current incentives are received and what changes employees would like to see. This feedback loop not only helps tailor incentives to individual preferences but also fosters a culture of open communication and trust, leading to higher employee engagement and satisfaction. One way to do it is via Employee Resource Groups (ERGs). Employees who participate in employee resource groups are 34% more likely to demonstrate high job commitment.
Establish clear metrics
Establishing clear, attainable metrics for incentives helps avoid employee dissatisfaction. Clear metrics are essential for measuring the effectiveness of incentive programs. These metrics should align with the organization's broader business strategy and goals, ensuring that incentives drive desired behaviors and outcomes. By setting specific, measurable objectives, organizations can track progress and adjust incentives accordingly. This clarity helps prevent misalignment between incentives and business objectives, ensuring that employees are motivated to achieve outcomes that truly benefit the organization.
Ensure clear communication
Effective incentive programs rely on clear communication and engagement strategies. Clear communication is vital for the success of employee incentive programs. It involves transparently explaining the criteria for earning incentives, the rewards available, and how they align with organizational goals. Effective communication helps build trust and ensures that employees understand what is expected of them to receive rewards. Regular updates and feedback mechanisms also keep employees informed and motivated, enhancing the perceived value of incentives and fostering a positive work culture,
Get leadership involvement
Leadership involvement is critical for the success of incentive programs. Leadership awareness plays a significant role in the implementation and success of employee incentive programs. Leaders must be aware of and actively support these programs by promoting them within their teams and demonstrating their value. Training leaders on how incentives work and encouraging them to advocate for these programs helps ensure that employees see the incentives as meaningful and integral to the organization's culture. This leadership support is crucial for fostering a culture of recognition and motivation, ultimately driving employee engagement and performance
Promote your incentive programs for program awareness
Regular promotion and awareness of incentive programs enhance employee participation. Make sure all employees are aware about your incentive programs so they can promote their company's involvement. HR should develop and implement promotion and communications programs that educate employees about the available incentives available. They can follow that up with leaders by implementing a campaign that engages staff and encourages participation. This may include promotional techniques such as posters or fun messages via company emails, intranets or game related incentives. Give your employees a list of incentives to ensure that all new workers are well trained from the start of their employment.
Frequently Asked Questions About Employee Incentive Programs
What are incentives in a workplace?
Incentives are rewards for an employee's performance that encourages and motivates him or her. The money can be rewarded with a gift, a reward, recognition, vacation, job protection or many other forms.
What is the importance of rewarding employees?
Rewarding employees is important because it boosts engagement, motivation, and retention. Recognition and incentives can enhance job satisfaction, improve performance, and foster a positive work culture, ultimately contributing to organizational success.
What is an employee incentive program?
An employee incentive program is a structured initiative designed to reward and motivate employees for achieving specific goals or milestones, improving performance, or contributing to organizational success. An example of an employee incentive program is PraisePal's employee recognition and rewards platform.
What are incentives and examples?
Incentives are rewards or benefits offered to motivate employees. Rewards incentives include things like gifts, monetary rewards or gifts of services or gifts. Another example are employee referral award programs which companies use for recruiting employees to hire job seekers.
Which is an example of an incentive?
An example of an incentive is a team retreat, which rewards collaboration and collective achievements by providing a chance for team members to bond and relax together.
What is the most common type of incentive system?
The most common type of incentive system is performance-based bonuses, which reward employees for meeting or exceeding targets. Companies also offer employee incentive programs in the form of an employee recognition platform like PraisePal, with integrated rewards to consistently incentivize employee engagement.
What is an example of an incentive program?
An example of an incentive program is a sales bonus program where employees receive cash bonuses for exceeding sales targets within a given period.
What is the best reward for an employee?
The best reward for an employee often depends on individual preferences, but common favorites include monetary bonuses, additional paid time off, and professional development opportunities.
What are monetary incentives?
Monetary incentives are financial rewards offered to employees in exchange for their performance, productivity, or achievement of specific goals. These incentives include bonuses, commissions, profit-sharing, stock options, salary increases, and other forms of direct financial compensation designed to motivate employees and enhance their financial well-being.
What are non monetary incentives?
Non-monetary incentives are rewards that do not involve direct financial compensation. Examples include flexible working arrangements, wellness programs, public recognition, volunteer time off, and gift cards.
What is an employee incentive plan?
An employee incentive plan is a structured program designed to motivate employees by offering rewards for achieving specific goals or milestones. These plans can include financial rewards, recognition programs, or other benefits tailored to enhance performance and engagement.
