Reward system

Can I apply point-based reward system in my organization?

Points-based awards are a strong tool to inspire and recognize staff. They enhance employee engagement, efficiency, and retention.

How does it work? And how to construct a points-based program?

This blog delves more deeply into the following topics to address these queries:

  • What exactly is a points-based rewards scheme?
  • Why it helps workers reach their potential

What is points-based rewards system?

You can express your gratitude to someone by giving them reward points in a system of incentives based on points. It is a concrete form of appreciation in which the value of the points is monetary. Such benefits make employees happy.

Say you've earned points for exceptional effort. How do you plan to use the points?

Rewards point redemption

Reward points let employees choose a reward. Redeem points for items, experiences, and gift cards. It is more realistic to allow employees to determine their rewards. It excites them. Employees can save points until they discover a good incentive.

  • Merchandise

  • Employees can use reward points to purchase a variety of goods from well-known international brands. Clothing, shoes, home goods, technology, accessories, sports gear, and many other product categories are examples of those found in merchandise stores.

  • Experiences

  • Rewards points can also be redeemed by employees to register for activities, events, and experiences. To enable the use of reward points for reservations, the business just needs to collaborate with suppliers of travel packages.

  • Credits

  • An employee's dream reward for achieving a workplace goal was requested to be selected in a recent survey. A gift card was the clear favorite of 44% of respondents.

    Gift cards are a popular way to reward employees and can be simply implemented into a points-based system. It works as a prepaid debit card with a set value. Reward points determine their value.

    Why will points-based rewards work?

    • Flexible rewards like points increase employee engagement, according to research. Points gamify the reward system. Employees may see how their actions might earn them incentives, which motivates them to advance.
    • Points-based rewards are meant to distract employees from cash incentives.
    • Yes, a cash bonus for reaching a goal is nice. But sometimes money alone isn't enough.  Cash prizes are easily lost. It may be spent on bills or normal expenses, with no enduring connection to the conduct rewarded.
    • Reward points let employees buy something they wouldn't normally buy. They can spend points to buy something now or save them for later. When they receive points, they can use them for something tangible.
    • Points-based rewards let employees choose the rewards they want. This creates anticipation and excellent employee behavior.

    Advantages of Points-Based Rewards

    For businesses with a worldwide workforce, point-based prizes are strongly advised when it comes to successful employee appreciation. Points-based awards might improve your incentives and recognition approach. Examples:

    1. Participation

    Employees love incentive points because they have a monetary value. Gamifying recognition makes employees happy, engaged, and productive. Employees will feel accomplished whether working against a schedule or toward a goal. They'll want to earn more points to receive higher-value prizes.

    1. Workforce Easily Recognizable

    Many businesses have employees around the world coordinating. Such employees are difficult to spot in-house. A digital points-based incentive solution makes it easy to recognize international personnel.

    1. Flexible execution

    Points-based programs adjust swiftly to changing business needs, goals, and employee preferences.

    • You can recognize staff innovation, goal-setting, customer service, work ethic, etc.
    • Employees can choose how to spend points.
    • You don't have to limit your program to gift cards. Offer redeemable goods or experiences.

    1. Employee-Friendly

    Employees can easily understand points-based systems.

    Most individuals are familiar with online shopping, credit cards, and store rewards. They won't need much instruction to understand the notion.

    1. Facilitates Recognition

    Point-based rewards make employee recognition easy. Employees can earn points for good behavior all year. Points-based rewards provide timely appreciation. A month-old accomplishment may not be worth recognizing. Acknowledgment is most useful when it follows the desired behavior.

    1. Track impact metrics

    Most reward point systems also track performance and productivity metrics. Points data shows employee engagement.

    Employers can learn about:

    • Who's most rewarded?
    • Who doesn't give or gain points?
    • If you're spending wisely, etc.

    1. Points boost recognition.

    Adding money to appreciation boosts its impact. Extrinsic motivation focuses on the reward for completing a task.


    When you want to show real and meaningful appreciation, it's important to consider what the employee wants. Each employee is unique. What might drive one person might not drive another. So it's important to think about what they care about.

    This system lets employees choose what they want to buy with their points-based rewards. So, it's a great way to give rewards to the modern, diversified workforce.

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