Organisations are continuing to adjust their rewards and incentives in line with changing employee and organisational needs plus changing working practices, according to new research.
In the research undertaken by Miconex with over 4000 organisations, employees and consumers in August 2024, 80% of organisations said they have changed some aspect of their rewards and incentive initiatives over the past 12 months, prompted by changing employee needs (62%), changing working practices (22%) and changing organisational needs (16%).
From the perspective of changing organisational needs, 94% said their rewards and incentives align with their organisational purpose and values. 89% said supporting local businesses/their community was important to their organisation and 84% said corporate social responsibility has become more important to their organisation over the past 12 months.
Reasons for supporting local given by organisations in the research included that it enabled them to take an active role in the success of their community (20%) and because it was important to their staff/customers/clients (30%). In qualitative research, participants talked about how support for local positively impacted their public perception of their organisation, creating a ‘halo effect’.
From the perspective of changing employee needs, qualitative research with organisations showed a preference for rewards that are ‘genuinely helpful’, including rewards that can be used in a practical way. 89% of organisations said offering choice to employees in their rewards and incentives was important.
In terms of rewards offered, 77% of organisations use gift cards for their staff rewards/incentives. 39% offer rewards and incentives at Christmas, 35% all year round and 18% at the end of the tax year. The majority (70%) of organisations said they offer rewards which are expected by staff. 66% of organisations surveyed expect their R&I budget to increase in 2025.
Colin Munro, managing director of Miconex said:
While down from the 100% or organisations who had changed some aspect of their reward and incentive initiatives in 2023, our 2024 research suggests that organisations are still tweaking their R&I initiatives, with CSR and local support playing a prominent role. We’re seeing a significant trend of organisations making the move to local gift cards, which enable organisations to proactively demonstrate what they stand for, and what they believe in.
Colin Munro, managing director of Miconex
Joanne is the editor for Workplace Wellbeing Professional and has a keen interest in promoting the safety and wellbeing of the global workforce. After earning a bachelor's degree in English literature and media studies, she taught English in China and Vietnam for two years. Before joining Work Well Pro, Joanne worked as a marketing coordinator for luxury property, where her responsibilities included blog writing, photography, and video creation.