We’ve all heard about the devastating consequences that employee disengagement and so-called “quiet quitting” can have on productivity and the bottom line.

The numbers are indeed quite shocking. According to Gallup, only 32% of employees report feeling engaged with their work, costing the US economy somewhere around $450 billion to $550 billion of productivity loss.

But, what if we try shifting the focus and ask ourselves – just how engaged with our employees are we?  What are we doing to motivate them to give their best to the team? How do our leadership and management styles contribute to employees’ disengagement?

There’s a lot of theory behind management styles to discuss and explore. In this post, however, we’ll aim to be more practical and provide some actionable employee incentive ideas you can apply immediately.

What Do Incentives Have to Do with Motivation and Engagement?

Motivation is the internal force that drives employees into action toward achieving the company’s goals.

Incentives are like a bridge that connects motivation and action. They can spark or amplify that motivation. The outcome is known as employee engagement – the active involvement and enthusiasm employees show when they feel motivated and valued, consequently improving the team’s performance and productivity.

Generally, there are two types of incentives:

• Tangible incentives are physical and concrete, such as bonuses or raises.
• Intangible incentives are more subtle and non-physical, fulfilling employees’ psychological and emotional needs.

Now that we’ve gone through the basics, let’s tackle the top incentive ideas that you can implement right away to improve your employees’ motivation.

But as we move on, keep in mind that incentive programs can hardly give good results if micromanagement, lack of recognition, unclear goals, or unfair treatment ruin employees’ intrinsic motivation.

1. Personalized Recognition

Seeing one’s name on the “Wall of Fame” is great, but let’s face it – it is a bit generic. Over time, this reward may lose its attractiveness.

Forget the one-size-fits-all approach. True recognition is about understanding what makes each employee tick, making them feel valued and seen.

Does Sarah light up when her work is praised in the company newsletter? Does John prefer a quiet thank-you note with a personalized gift card?

Pay attention to these details. Create a “recognition profile” for each employee, noting the forms of appreciation they prefer. You can use these motivators to support positive behavior and foster a sense of recognition and belonging within the team.

For example, an employee may be thrilled by donating to their favorite charity in their name. Is there a better reward for the perfume enthusiast on your team than a digital gift card to choose their own all-gender fragrance? Your recognition options are endless when you get to know your employees and personalize recognition!

2. Opportunities for Professional Growth

We all work for a salary but crave much more than a paycheck. And so do your employees. Besides being paid adequately, they want the chance to learn and progress in their careers.

Providing your employees with more growth opportunities will tackle the intrinsic motivator of mastery – the need to improve and achieve a greater sense of competence.

Imagine the sense of pride and accomplishment when your employee earns a new certification. The certificate will not only benefit them individually but also enhance their contribution to the team and company.

How can you provide professional development opportunities?

• Don’t stick with mandatory training. Offer your employees different workshops, conferences, or online courses to choose from, depending on their own career goals and needs.
• Pair your senior staff with your new hires for knowledge transfer and personal development. This mentorship program can benefit both sides.
• If some of your employees pursue further education, think about offering a stipend or tuition reimbursement.

3. Flexible Work Arrangements

The traditional 9-to-5 office model is no longer the norm. Flexible work gives your employees the freedom to work when and where they are most effective.

A parent who can clock in early and finish in time to pick up their kid from school will be less stressed and more focused on their tasks. A night owl who loves working late hours will also maximize their productivity if they are allowed to adjust their schedule to their circadian rhythm.

Flexibility brings a sense of autonomy and control, key components of intrinsic motivation.

Employees who feel empowered to manage their own schedules and work environments are often more productive and satisfied with their jobs.

So, what can you do to achieve this?

• Implement a clear remote work policy.
• Offer flexible start and finish times.
• Consider a four-day workweek or the option to compress hours into fewer days.
• Invest in the necessary technology and infrastructure to support remote work.

4. Wellness Initiatives

Wellness initiative programs show that you care about your employees as fellow human beings and not just their work performance, fostering a sense of loyalty.

Research also shows that a healthy workforce is good for business – employees are more productive, take fewer sick days, and experience lower stress levels.

Imagine the positive impact of a company-sponsored mindfulness workshop. It could equip your employees with tools to manage stress as well as improve their focus and overall mental well-being. This, in return, will make them more resilient and engaged.

How can you achieve this?

• • Mental health matters. Provide your employees access to counseling or employee assistance programs (EAPs).
  • Offer gym memberships or discounted fitness classes.
  • Organize yoga or meditation sessions during breaks or after work.
  • Offer convenient, on-site wellness treatments to help your employees de-stress and recharge without having to leave the office.
  • Encourage walking meetings or provide standing desks to promote movement throughout the day.

5. Team-Building with a Twist

Team-building activities are essential for fostering connection and collaboration in your company.

The unique team-building experiences tap into the intrinsic motivators of relatedness and purpose. When employees feel connected to a larger cause or share a unique experience with their colleagues, it creates a sense of belonging and shared purpose that goes far beyond the daily grind.

Here is what you can try:

• • Themed events or challenges. Bring some fun into the workplace with themed events or challenges that encourage teamwork and friendly competition. For example, you can organize a night sky viewing event for your team and encourage curiosity and awareness of the vastness of the universe. What can be a better way to spark conversations and create shared memories?
  • Volunteer day. Organize a company-wide volunteer day where employees can give back to the community together. Volunteering can give a sense of purpose, strengthen your employees’ bonds, and support your company’s commitment to social responsibility.
  • Brainstorming get-togethers. Schedule regular, informal sessions where employees can gather to brainstorm new ideas, solve problems, or share their thoughts. This kind of team-building activity will encourage collaboration, allow employees to feel heard and valued, and give them a space to grow.

Wrapping Up

From milestone celebrations, profit sharing, and sabbaticals, the possibilities of incentivizing your employees and re-engaging them with your company are endless.

With some estimations that the cost of employee turnover can reach about 50 percent of their annual salary, churn can be devastating for your business,

So don’t let your top talent walk out the door. Take proactive measures to prevent their turnover, and allow them to fully contribute to your team’s growth and success.

Guest post.