What are Loyalty programs?
Loyalty programs refer to reward systems set up by a company to reward employee performance and motivate employees on individual and/or group levels. Employee loyalty programs are designed to provide psychological reward as in a financial benefit. Loyalty programs are often combined with reward programs since the elements of designing and maintaining the two are the same.
What are the benefits of employee loyalty programs?
The offer of incentives in the form of loyalty programs for employees is a popular choice because it allows people to earn bonuses, be they monetary or tangible, for doing a good job, which in turn makes them feel valued.
Following are the benefits of employee loyalty programs:
1. Reduces employee attrition and turns employees into long term, high-value, high-performing assets.
2. Lets employees feel appreciated through employee rewards, motivation, training, and empowerment.
3. Creates a positive brand awareness about the company as a good place to work, with the highest engagement driven by the loyalty program.
4. Enables employees to be proactive rather than reactive, therefore makes working a joy, not a chore.
5. Promotes a competitive culture, but also harmonised workplaces and team spirit.