66 Employee Incentive Ideas To Build Your Recognition Program On
Motivating and retaining employees requires more than just a paycheck. Employee incentives are a critical form of recognition, whether you’re looking to reward exceptional performance or show appreciation for everyday efforts.
This list of employee incentive ideas is designed to provide actionable tips and examples to inspire your next initiative.
What Are Employee Incentives?
Employee incentives are rewards given to employees for achieving specific goals or milestones. These incentives can range from monetary bonuses to non-monetary perks like extra time off or public recognition.
They are often a core component of employee recognition and rewards programs, which are designed to encourage productivity and enhance employee satisfaction.
Why are incentives important?
Incentives play a crucial role in increasing employee engagement and boosting performance. This belief is largely built on observation of worker behaviors around incentives.
You might see some data if you fire up Google and search for the impact of incentives, but most of the credible research is either particularly niche to industry and location or so old it lacks relevance for the current generations in the workforce.
With that said, it doesn’t take a data scientist to validate the idea that employees like recognition and rewards for performing at work.
A bit of logic here can go a long way, but it is worth noting the difference between those two things and why both are important.
Rewards vs. recognition
Although closely related, rewards and recognition serve different purposes. Rewards are tangible (bonuses, gifts), while recognition is intangible (public acknowledgment).
While both are essential, incentives typically fall into the rewards category, offering a more immediate and direct return for specific behaviors or achievements.
Luckily, you don’t have to overthink things these days. There are employee recognition platforms that can help you do both with relative ease.
What you do have to do, however, is think about what you want to offer in rewarding employees. We’re here to help with that too, but one common theme you'll notice in these suggestions is flexibility.
Offering flexibility, like letting employees choose between extra vacation days or a bonus for hitting targets, can be a great way to motivate your team. Everyone values different rewards, so offering options is key.
How To Design An Employee Incentive Program
Designing an incentive program starts with identifying your goals. Are you looking to improve performance, reduce turnover, or foster teamwork?
Next, ensure that the rewards are aligned with the desires and needs of your team. Offer a variety of incentives so that different employees are motivated. Communicate the program clearly so that employees understand how they can earn rewards, and make the criteria fair and transparent.
You can also lean on employee incentive software to help you automate many parts of your future incentive program, especially if you want to tie incentives to performance-based goals such as hitting specific sales targets.
So let’s waste any more time, let’s get straight into some ideas for how to incentivize your employees.
66 Employee Incentive Ideas
- Performance-based bonuses
Survey data shows that roughly two-thirds of employees highly value receiving bonuses for their individual performance. These bonuses can be tied to key performance indicators (KPIs), which ensures employees focus on measurable business outcomes. - Gift cards to popular stores or restaurants
A great way to offer flexibility when you want to provide smaller rewards. Employees can choose what suits them best, making this a versatile and popular choice of reward. There’s a variety of employee perk programs that can help you automate this as well. - Extra paid time off (PTO)
Offering more PTO shows employees you value their work-life balance. A Glassdoor survey found that 37% of employees prioritize vacation time over a pay raise, but it's worth noting that this perk is useless if you’re not encouraging people to take the earned PTO. - Employee of the Month awards
Publicly recognizing an outstanding employee builds morale across the team. Add a creative twist, such as a rotating trophy or a free lunch from the employee’s favorite restaurant. - Lunch with the CEO or leadership
Provide employees with direct access to company leaders, offering mentorship and fostering transparency. This also gives leadership insight into frontline operations, but the primary benefit is helping high-performing employees feel connected to the highest levels of the organization. - Fitness membership reimbursements
It’s been estimated that employees who are physically healthy are three times more productive. You can prioritize health by covering gym memberships or fitness programs. - Work-from-home stipends
Help remote employees improve their home office setup. Whether it’s a new chair or faster internet, this incentive increases comfort and productivity. - Company-branded merchandise (mugs, hoodies, etc.)
Everyone loves some free stuff, especially if you involve them in the design. Branded swag has long been a way to provide employees with something to feel connected to the company culture and showcase a sense of pride in their involvement with the company. - Tickets to local sports, concerts, or theater events
Experience-based incentives like event tickets encourage work-life balance and create positive emotional connections to the company. - Professional development courses or workshops
Investing in your employees’ skills shows long-term commitment. According to LinkedIn Learning, 94% of employees say they would stay longer if their company invested in their coursework, which would help their career development. - Free or discounted meals at the office cafeteria
Offering daily perks like meals can improve employee satisfaction and reduce the need for employees to step out, saving them time and money. In the end, not everything has to be a direct payment, simply saving employees money and effort can go a long way. - Cash bonuses for meeting specific targets
Okay, I know what I just said, but let’s be real, cash is always a popular choice and can be tied to measurable results. Research shows that combining cash rewards with recognition amplifies the impact. - Flexible work hours
People have tasted flexibility in recent years and they don’t want to let it go. Give employees control over their schedule. This is especially beneficial for work-life balance, and numerous studies have found that flexibility is one of the top drivers of job satisfaction. - Subscription services (e.g., Netflix, Spotify)
Offering entertainment subscriptions is a great way to show appreciation in a personalized manner, letting employees unwind in their free time. For many who would subscribe to these services on their own, the expense being covered by the company is another great way to save money. - Recognition in company newsletters or on social media
Publicly celebrating employee achievements strengthens community and culture. It also gives employees a chance to shine outside their immediate teams, building their reputation and clout in cross-functional projects. - Public shout-outs in team meetings
A simple but powerful way to recognize someone’s hard work. Public recognition can enhance employee self-esteem and increase motivation, but it’s important to not let it turn into a popularity contest. Have mechanisms in place to help ensure the praise is distributed evenly. - Parking space for a month
Offering a premium parking spot to top performers is a small but meaningful reward, especially in busy urban areas where parking is scarce. - Weekend getaways or travel vouchers
Reward employees with the opportunity to relax and recharge. Studies show that employees who take regular vacations are more productive and experience less burnout. - Technology upgrades (laptops, monitors, etc.)
Help employees stay productive with top-of-the-line tech. Offering tech upgrades shows you care about creating the best possible work environment and staying up to date with the latest tools and trends. - Employee wellness programs (yoga, meditation classes)
Focus on mental health with wellness programs that improve employee well-being. Companies that invest in wellness report reduced absenteeism and improved performance. - Team-building events (escape rooms, bowling)
Encourage collaboration and teamwork through fun, engaging activities. These events help employees build stronger relationships, which improves communication at work. - Company-sponsored happy hour
A casual, fun way to help employees unwind and socialize with coworkers. This fosters a relaxed atmosphere and strengthens team camaraderie, just make sure it’s a happy hour and not an all-nighter. - Birthday or anniversary recognition with gifts
Celebrate an employee’s personal milestones with personalized gifts. This shows you care about their time at the company and their life. - Donations to a charity of the employee’s choice
Appeal to employees’ sense of purpose by making charitable donations in their name. This is particularly effective for companies with a socially conscious workforce. - Personalized thank-you notes from management
Handwritten, thoughtful messages can have a lasting impact. While a message from the CEO is nice, it’s actually not the most memorable according to a study from Gallup. This type of recognition from managers and colleagues is what people actually remember. - Office decorations to personalize their workspace
Encourage creativity by letting employees choose how to decorate their desks. Personalized spaces can increase productivity and increase employees' comfort within their work area. - Company-sponsored training or certifications
As we mentioned before, employees are more likely to stay with a company that invests in their development. Offering certifications also helps to evolve the organization’s overall skills footprint. - Work-from-anywhere days
While there has been some increasing concern that employees are working while on vacation, this is an example of exactly the type of flexibility people are looking for. Giving employees the freedom to work from any location can serve as a refreshing change of scenery, boosting creativity and productivity. - Paid volunteer days to support causes employees care about
Studies show that social responsibility is important to more than 70% of employees, and offering paid time to volunteer is a great way to support causes they are passionate about. - Stock options or equity in the company
Align employees' long-term success with the company’s. Offering stock options incentivizes employees to stay committed to the company’s future and be more invested in staying on board. - Referral bonuses for recruiting new talent
Reward employees for helping find new talent. This incentive encourages employees to bring in people who align with the company culture and who they believe will be a positive culture add. - Access to a mentorship program
Provide opportunities for growth through mentorship. Mentorship programs increase retention by helping employees develop new skills and feel supported. - Onsite massage services
Help employees relax and reduce stress with a quick massage session. Research shows that reducing stress levels improves focus and productivity. Many aches, pains, and illnesses are related to stress and a massage can help reduce the impact of these factors. - Wellness gift baskets
Send a curated basket of wellness items to promote health and relaxation. It’s a thoughtful gesture that also shows you prioritize employee well-being. - Paid lunch delivery to their home or office
Treat employees to a meal of their choice. It’s a simple yet appreciated gesture, especially for remote workers who might not get many perks. - Holiday gifts or bonuses
Celebrate the festive season by offering gifts or end-of-year bonuses. It’s a great way to end the year on a positive note and acknowledge hard work at a time when employees are more inclined to reflect anyway. - Pet-friendly office days
Encourage employees to bring their pets to work, creating a fun and relaxed atmosphere. Pet-friendly policies have been shown to reduce stress and improve morale. However, it’s a good idea to maintain some spaces as a pet-free zone for employees with allergies. - Desk plants or home office greenery
Plants in the office are known to reduce stress and increase productivity. Offering plants or office greenery is a simple, eco-friendly way to brighten up the workspace and add a bit of feng shui. - One-on-one coaching sessions for career development
Offer personalized coaching to help employees achieve their career goals and develop career paths that suit their ideals. - Celebrating work anniversaries with personalized gifts
Recognize employees' long-term commitment with a meaningful gift. This kind of recognition boosts retention, rewards loyalty, and makes employees feel valued. - Time off for personal projects (e.g., passion projects, learning)
Support your employees’ personal passions by giving them time to work on side projects. This shows that you value their personal growth as much as their professional contributions. - Host company-sponsored sports leagues (e.g., softball team)
Sports teams are a fun way to encourage teamwork and physical activity, both of which improve overall employee well-being. - Recognition plaques or certificates for outstanding performance
Tangible awards, such as plaques or certificates, serve as lasting reminders of an employee’s achievements and boost pride. It also gives them something personalized to decorate those office walls with. Two birds with one stone there. - Offer sabbaticals after a certain number of years of service
Reward employees who have been with the company for a long time by offering a sabbatical. This time off allows employees to refresh, reflect, and return to work energized. - Quarterly or yearly bonus based on company performance
You can tie bonuses to the company’s overall success to foster a sense of ownership and accountability. If you’re giving individual bonuses, a good way to do this is to oscillate between bonuses tied to company results and individual performance bonuses quarter by quarter. This gives a good balance between incentivizing one’s own performance and the company’s. - Organize surprise team appreciation events
Unexpected team events, like an impromptu lunch or outing, can give employees a bit of a break, shake up routines, and show employees that their hard work hasn’t gone unnoticed. - Employee choice of project or assignment
Allow high performers to choose their next project, giving them a sense of control. This will foster a personal investment in their work and therefore increase levels of engagement. - Recognition through internal "Hall of Fame" wall or board
Create a permanent display of employee achievements in the office. This kind of recognition fosters a sense of accomplishment. - Offer free snacks and drinks in the office
Stock the office kitchen with snacks and drinks to keep employees energized throughout the day. Companies mandating a return to office should seriously consider making an array of healthy options free to employees as a bit of reward for committing to the company’s vision. - Commuter benefits or public transit stipends
Help ease the burden of commuting by offering financial support for transportation. This is especially useful in cities where commuting costs can be high, to say nothing of parking or the time spent commuting. - Personalized trophies or awards
Create customized trophies to recognize outstanding achievements, adding a personal touch to standard awards. Perhaps the trophy is decorated in the colors of their favorite sports team or includes a reference to a hobby they’re passionate about. - Virtual coffee chats with executives
A full lunch with the CEO may not be an option, and maybe the employee actually wants to chat with a different executive. This creates a way for them to interact informally with leadership to foster transparency. - Host learning lunches where employees share skills
Encourage knowledge sharing by organizing lunch sessions where employees teach each other new skills. - Annual company retreat or team trip
Take the entire team on a getaway to relax and bond. Company retreats are a great way to strengthen relationships, create a positive work culture, and cultivate some lasting memories. - Pet insurance or other special insurance plans
Offering unique benefits like pet insurance shows employees you care about their personal lives as well as their professional contributions. - Adventure or Experience Day
Some people prefer experiences over things, particularly Millennials. Give employees the chance to choose from a list of unique experiences like skydiving, cooking classes, or guided hiking tours. Studies show that experiential rewards are often more appreciated and impactful than material rewards because they provide lasting positive emotions and a sense of fulfillment. - Exclusive access to company events or product launches
Offer employees the chance to attend exclusive events or get early access to new products as a way of showing appreciation. - Executive shadowing for a day
Give employees the opportunity to spend a day shadowing a senior executive to gain insight into high-level decision-making and leadership strategies. - Customized desk or office supplies
Offer personalized office supplies like customized notebooks or pens to create a more enjoyable work experience. - Offer a personal assistant or concierge service for a day
Treat high performers to a day where someone else handles their tasks, allowing them to focus on more important work or take a break. - Organize an employee talent show or creative contest
Encourage creativity and fun by hosting a talent show or contest. This brings the team together in a lighthearted way. - Free gym memberships or fitness classes
Offering gym memberships or fitness classes is an excellent way to promote health and wellness in the workplace. - Childcare Assistance or Stipend
Provide employees with a childcare assistance program or a monthly stipend to help cover daycare or after-school care costs. This incentive helps working parents balance their responsibilities, reduces stress, and boosts productivity by allowing them to focus on work without worrying about childcare logistics. Offering this kind of support also demonstrates that the company values family well-being and work-life balance. - Give back-to-school supplies for employees with kids
Help parents out by providing school supplies for their children, especially during the back-to-school season. - Monthly subscription boxes (e.g., snack boxes, book clubs)
Offer employees monthly subscription boxes to show appreciation in a fun and engaging way. Subscription boxes also create a sense of anticipation. - Allow employees to shadow other departments to learn new skills
Encourage professional development by allowing employees to explore other departments and gain new skills.
