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5 Trends in Employee Rewards, Recognition and Benefits in 2020

As the year starts, trends in employee rewards and recognitions in 2020 have become the talk of the HR world. With the changes in workforce profiles, preferences, and priorities, organizations need to adapt their employee reward and recognition strategies.

As per statistics, in the year 2002, 84% of the organizations made use of the employee rewards and recognition strategy to motivate the employees which grew to 87% in the recently concluded year.

Let’s take a peek at the most likely trends in employee rewards and recognition in 2020:

What are the Key Trends in Employee Rewards, Recognition, and Benefits in 2020?

5 Trends in Employee Rewards, Recognition and Benefits in 2020

1. Experiential rewards will become more popular

Experiences

Research has shown that employees prefer great experience over material gifts when rewarded at work.

Employees no longer wish to receive any merchandise or cash as a reward.

They are looking to explore new activities that are memorable and drive enjoyment.

For instance, many organizations consider offering international vacations as a reward for their employees.

Experiential rewards are likely to offer greater employee satisfaction and motivation.

2. Building the foundations of a robust people-first culture

Employee Benefits

2020 would give rise to the employee-first decade, with more and more organizations adopting it as their business goal.

This is necessary to elevate the organization’s culture and retain top talent.

For instance, organizations like American Express consider redefining their existing strategies to reinvent their organizational culture. 

The best way to build a great culture is to reward, respect, and care for employees at every level.

3. Benefits related to wellness will be on the rise

Wellness App

Wellness programs such as meditation, yoga, zumba, gym memberships, and spa sessions can greatly benefit employees.

Given the work-related stress, taking care of both the physical and mental health of employees have become essential.

The wellness programs bring twin benefits. They impact employees positively; at the same time, they cater to the interests of the employer.

Hence, employee wellness levels improve and become more focused, productive, and innovative.

Also, it can lead to a considerable reduction in sick leaves and absenteeism.

4. Instant/ Timely recognition will become more critical

Social-Visibility

Digitally savvy employees want instant gratification in every sphere of their lives. Hence, they want recognition at the right time and in the right way.

Hence, organizations need to make reward and recognition programs technologically advanced and mobile.

Thus, something worthy of recognition should happen instantaneously instead of at the end of the month, quarter, or year.

5. Personal development will emerge as an essential way to reward

Learning and Development can Promote Employee Engagement

As per statistics, 65% of employees consider personal development significant in their jobs.

Thus, career progression and skill development are two global HR trends.

Hence, employees want clarity about their roles and the opportunities for career and personal growth.

Employees look for enhanced responsibilities, leadership roles, special assignments, and interaction with senior leadership for self-development.

Organizations can consider workshops and courses that aim to broaden the knowledge levels of the employees.

The organization may also provide training sessions to employees to enable them to learn new skills and refine existing skills. It is beneficial to the organization as well.

Read Key Trends in HR for 2021 and Beyond

Also read Key Employee Rewards and Recognition Trends in 2021 and Beyond

Bottom-line

Thoughtful rewards, given in the right way at the right time, can bolster motivation, productivity, and loyalty in the workforce.

2020 as a year should see an increasing focus on meaningful employee rewards, recognition, and benefits across organizations.

Sagar Chaudhuri

Lead author: Sagar Chaudhuri, the Co-Founder and CEO of HiFives. He is an HR Tech Evangelist with over 25 years of corporate and entrepreneurship experience. In the past, Sagar has worked in leadership roles with companies such as Genpact, Infosys, and ICICI Bank. He has an engineering degree from IIT Kharagpur and an MBA from IIM Lucknow. Connect on LinkedIn

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HiFives is a global employee rewards, recognition and engagement SaaS platform that enables organizations to digitize, automate and transform their employee experience. It is used by 100+ large enterprises, small businesses and startups in manufacturing, retail, technology, financial services and media, across 25+ countries.