10 Types Of Employee Bonus That Your Workforce Will Adore
Of the many good news you can provide to an employee, none will fetch you a broader smile than an employee bonus pay. The announcement of a bonus is one of the happiest welcome surprises that your workers desire. It is because such rewards display a gesture of much-appreciated hard work.
For this very reason, giving employees a bonus will earn you a great name within your organization. It will bring dividends in employee loyalty, job satisfaction, employee net promoter score, employee engagement levels, and the list goes on.
Understanding the magnitude of these positives in the workplace makes it imperative to think of an appropriate bonus for your workers. Thankfully, there are many types of employee bonuses that you can choose from to meet your requirements. Let's look at a few of these in our blog today.
10 Types Of Employee Bonus That Your Workforce Will Adore
1. Gain or Profit Sharing
It is one of the most common and effective ways to give bonuses to your workforce. Here, employers dedicate a percentage of the profit for a certain period to the workers. This is very effective as it motivates the workforce to do better because the more the gain, the more is the bonus amount.
A bonus type as such also shows a transactional leadership style in effect at the office.
2. Spot Bonus
A spot bonus is a generous gift given to workers on the spot for completing a specific task. These are mostly cash prizes that can typically start from $50 and onwards. This bonus sparks the initiative characteristics of workers to perform above and beyond.
Employers can either single out the work against this bonus or can reserve it as a discretionary bonus. Here, if you find an individual is doing exceptionally well in his/her field, you can give out the prize on the spot to that person.
3. Non Cash Bonus
Non-cash bonus is a cost-effective way to give a gesture of employee appreciation. These are generally a certificate, token of appreciation, or a trophy. You can reward these at the annual function along the lines of an award night for corporate excellence, etc.
While many may think that non-monetary incentives or bonuses won't be helpful, the argument is invalid. The appeal of a cash bonus is always there, but certain non-cash elements like a trophy stay forever. It reminds of fond memories spent at the office. Moreover, it also helps the HRs design a more attractive employee journey mapping for different employees.
You can also go a step further and allot special bonus leave for the employees as a non-cash-based bonus.
4. Task Bonus
Task-based bonuses are employee rewards combined with specific tasks. Employees are entitled to get a prize when they finish the task allotted to the bonus. This bonus is an excellent incentive mechanism to enhance job efficiency and effectiveness.
A sign-on bonus is a reward you give to new hires in their onboarding process. While this bonus was meant for athletes, different companies nowadays offer a similar bonus to their new joiners. It makes the new hires feel valued and paints a great image of the employer.
This will help you cement a better employer-employee relationship with a fruitful and long employee tenure. It will also serve as a great selling point in the employment contract while hiring the market's top talent. Incorporating this bonus will also help your hiring strategies.
6. Referral Bonus
Referral Bonus is a great alternative to include in your rewards and recognition program and help with your HR department's workload management. Referral Bonus is given when an existing worker recommends an acquaintance of his/her for a job.
It helps cut the tension of new hires to a huge extend. Instead of HRs spending hours shortlisting candidates, they already have a lead that they can track down for a quick hire. In hindsight, the referral programs save a lot of time and money in the recruitment process.
7. Retention Bonus
Employee retention is a critical issue in the corporate world today. Since the competition is sharp in the market, there are many employment options available. It means if your worker is not pleased with your workplace culture, they can shift companies very quickly.
This change in the market has affected the retention rate of many companies to a vast extent. Therefore, to persuade your workforce to stay with your company, you can design a retention bonus program. The idea behind this program is to reward employees who have served a fair amount of time with your company.
It will keep them motivated to continue with your company and boost your employee retention ratio. For this primary reason, a retention bonus can be a great tool to maintain a healthy employee turnover ratio in your organization.
8. Holiday Bonus
This may be the most common bonus that most employers give to their workers. A holiday bonus is a gift to workers during the different festivals of the year. This practice of holiday bonus is mainly prevalent during Thanksgiving, Christmas, and New Year periods.
These bonuses can also take the form of annual bonuses in some corporations.
While a holiday bonus can be the most common form of a bonus, a commission is one of the oldest forms of the same. These are mostly sales commissions given to business development executives to drive more sales of a business. It is one of the primary sources of bonus for companies in the hardcore sales market.
10. Gift Cards
Gift Cards are some of the most common forms of non-cash-based bonus you can give to your workers. Millennials increasingly use these to get a great deal on their favorite products. It is also a cost-effective type of reward for employers since most gift cards don't cost much. Things are even better if you can buy these in bulk.
Here, continuing a bit further on this point, we can help you a lot better In arranging your gift cards. In this respect, our employee engagement software can be of great assistance to you.
How Vantage Circle Can Help Your With Your Employee Bonus
Our Vantage Circle's holistic Employee Engagement platform offers excellent rewards and recognition feature. We bring exclusive corporate deals for employees around the globe with exciting gift cards through our association with various market giants.
Here, your workers can get special deals from dealers like Amazon, Flipkart, etc. By utilizing our custom platform, you can also allot redeemable points as bonuses to your workers to get an even better deal on our wide selection of products.
Other than these, you can also use our platform to avail monetary or non-monetary gifts, which are sure to amaze your workers. You can better understand our product through a thorough demo at your convenience.
That concludes our rundown of the types of employee bonuses and how we can help you with the same.
Recommended Resource: You can download our ebook for free, A Complete Guide to Rewards and Recognition, to engage, align and recognize your employees to inspire success.
The biggest asset that any corporate must accommodate for success is a great team.
A team must be loyal, dedicated, and, most of all, motivated to bring you success. To achieve all this in a workforce, giving employee bonuses fits the bill perfectly.
Therefore, you must give the best of generous employee bonuses as your next surprise.
We hope our piece helped you decide which one you can pick for your workforce.