Reward Point System: How to Implement Point-Based Rewards!

Having an employee reward point system is one of the best ways to ensure that concepts such as employee appreciation and recognition carry far more power in your organization.

While many organizations already have their own established employee reward programs or recognition platforms, point-based reward systems have risen to prominence in recent years.

Due to their simple nature that brings an air of meritocracy as well as gamification to the practice of employee recognition, reward point systems at work have gained widespread acceptance in organizations of all shapes and forms.

So in this post, we will be covering some of the some core questions about point-based employee rewards before showing you:

Just how you can build an employee recognition point system with employee incentives and rewards of your choice built into it right inside Microsoft Teams.

So let’s get to it!

What Exactly is a Point-Based Reward System?

A point-based employee reward program or simply a reward point system for employees is a systematic form of employee recognition that assigns point values to positive employee behaviors and actions.

An employee recognition point system is built around awarding points to employees for specific actions, milestones, or performance metrics, which can later be redeemed for various rewards.

At its very core, a point-based reward system translates employee actions and accomplishments into a quantifiable currency: Points.

The primary objective of point-based employee incentive programs is to create a direct and transparent link between performance and rewards, fostering a culture of recognition and continuous improvement.

Types of Possible Rewards

While organizations may choose to reward their employees multiple different ways but when looked from the simplest of lenses, there are two types of employee rewards:

• Monetary Rewards: Direct financial incentives like bonuses or salary increases are straightforward but may lack the ongoing engagement that a point-based system can provide. Points can be awarded more frequently and for a broader range of activities, maintaining a constant level of motivation.

• Non-Monetary Rewards: While non-monetary rewards such as direct employee praise or congratulatory certificates can be effective, they don’t always have the same tangible appeal monetary incentives do.

An effective point-based employee recognition system combines the immediate recognition of non-monetary rewards with the tangible benefits of monetary rewards.

While the points themselves bring with them the sense of recognition and appreciation that non-monetary rewards do, the actual rewards associated with those points have that tangible appeal.

Why implement a reward point system?

An employee reward point system can have various different benefits to an organization but at the end of the day, its core benefit comes in the form of employee engagement and motivation.

In a day and age when employee loyalty is one of the most heavily sought-after concepts and more and more individuals are suffering from burnout and disengagement, reward point systems for employees can offer the following benefits:

• Boosting Motivation and Engagement: Regularly awarding points for a variety of actions ensures employees remain motivated and engaged. The immediate recognition and the prospect of accumulating points for future rewards create a continuous cycle of motivation.

• Encouraging Specific Behaviors: Organizations can tailor their point-based systems to promote desired behaviors. For example, awarding points for teamwork, innovation, or punctuality reinforces these behaviors across the workforce.

• Fostering a Positive Workplace Culture: Regular recognition through a point-based system can significantly enhance workplace morale. Employees feel valued and appreciated, which fosters a positive and collaborative work environment.

• Enhancing Productivity and Performance: With clear goals and rewards in place, employees are more likely to strive for higher performance levels. The employee reward point system provides a clear roadmap of what is expected and how their efforts will be rewarded.

4 Key Elements of Designing an Effective Point-Based Reward System

Before we start building our point-based employee reward and recognition system, there are some crucial grounds our reward point system has to cover.

1. Defining Actions and Behaviors That Earn Points

To ensure the point-based reward system is effective, it is crucial to define the actions and behaviors that will earn points. These actions should align with the organization’s goals and be clearly communicated to employees. Consider including a mix of individual and team-based achievements to promote both personal accountability and collaboration.

• Individual Actions: Meeting or exceeding sales targets, punctuality, innovative problem-solving, upskilling through training programs.

• Team-Based Actions: Successful completion of projects, collaborative efforts, cross-departmental initiatives.

• A Flexible Structure: There are plenty of occasions in the workplace that can’t be anticipated or quantified but can still help everyone on the team. Like that one employee who keeps bringing everyone donuts in the morning and boosts their spirits with a smile on their face!

2. Establishing a Point Value System

There are multiple different ways to build a point value system. Assigning point values to recognition badges in an employee recognition platform is a good idea.

Points can also be associated with completing difficult tasks or achieving goals.

3. Creating a Catalog of Rewards

A crucial component of the point-based reward system is the rewards catalog.

The catalog should offer a variety of rewards to cater to different employee preferences and ensure continued motivation. Rewards can be tangible, intangible, or experience-based, providing a mix that appeals to a diverse workforce.

4. Ensuring Fairness and Transparency

For a point-based reward system to be effective, it must be perceived as fair and transparent by all employees.

Clear communication about how points are earned, the value of each action, and the process for redeeming rewards is essential. Regular updates and transparency in point allocation prevent any perceptions of bias or favoritism.

How to Build a Point-Based Rewards and Recognition System in Microsoft Teams

If you are looking for a quick short-cut guide on how you can implement an employee points reward system, then look no further than the video above.

While the video guide also comes with employee reward ideas, we put together a step-by-step guide on how you can build a point-based employee recognition and reward system in your company.

The key to implementing any sort of point organizational system is to have it integrated into the tools and platforms your employees use day in and day out.

That is why in this guide we will be using a recognition software that is built for Microsoft Teams and Outlook: Teamflect.

Step 0: Integrating a Rewards & Recognition Tool

In order to start building a point reward system for employees inside Microsoft Teams, all you need to do is head over to the Teams App Store and look for Teamflect.

The app is completely free with full functionality for up to 10 users. This means you can test the waters with ease and if you believe it is the right fit for you, you can choose to invest.

There is no additional need for setting up. Since the app is an official Microsoft Partner, it draws your organizational chart from Entra ID, having all your employee information already set-up.

It also only requires your Microsoft Account to log in.

Step 1: Defining Recognition Criteria and Points Scheme

Regardless of which tool you are using for your reward point system, your next step is rather straightforward.

You need well-defined employee recognition criteria and a work point system that is fair, accountable, and clear.

• What are the criteria for recognition?
• How many points are each recognition worth?
• Can employees recognize each other whenever and earn points?

While the answers to these questions depend on your company’s culture, you can do the following inside Teamflect:

• Access a library of customizable recognition badges with points built-in.
• Assign points to each recognition badge.
• Limit the amount of monthly employee reward points individuals can give each other.

Step 2: Exchanging Recognition Badges

In order for your reward point system to function effectively, you need to ensure your there is a culture of recognition built into the fabric of your company.

Your employees can use multiple different avenues to recognize each other. Recognition badges can be exchanged inside:

• Microsoft Teams Chat
• Inside Ongoing Microsoft Teams Meetings
• Your Outlook Inbox
• Teamflect’s Recognition Module

Your employees will earn points with each recognition they receive. The next step will be to redeem the points they’ve earned for rewards.

Step 3: Building an Employee Rewards Catalogue

Your reward point system can’t be complete without rewards and incentives.

The next step is to create a reward catalog for your employees where they can redeem the points they’ve earned.

You can add any reward of your choice to your employee rewards catalog and determine how many points each reward is worth with ease.

Step 4: Exchanging Recognition Points for Rewards

The final and perhaps most important step in our guide on how to build a reward point system for your employees is your employees redeeming their recognition points for actual rewards and incentives.

Your employees at any time can head over to Teamflect’s “Recognition” module and head over to “My Rewards” in order to spend their hard-earned employee recognition points

Managers / Admins can easily approve their employees’ reward purchases as while leaving personalized notes with each approval, letting the employees know just how much their efforts are appreciated.

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