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Example gallery · 24 examples · Lean leadership and employee engagement

Employee rewards examples, sorted by type

Employee rewards are anything a company gives or arranges to recognize good work, from a spot bonus to a day off to the chance to lead a project. Money matters, but it isn't the only thing that keeps people. The 24 examples below are sorted by type, with what each one is good for and the mistake that makes it backfire. Extrinsic rewards cover both the monetary and non-monetary groups.

Want the long version? Six Types of Employee Rewards to Boost Engagement: The six reward types explained, and how to build a reward system that mixes them.

Cost
Who

Showing 24 of 24 examples

Intrinsic rewards

The satisfaction that comes from the work itself. You can't hand these over, but you can set up the conditions for them.

    • Low cost
    • Individual

    Leading an improvement project

    Ask the person who raised a problem to lead the fix, with support and time set aside for it.

    Good for:
    People who want more responsibility and keep spotting problems.
    Watch out:
    Giving the project without the time to do it, which feels like a punishment.
    • Low cost
    • Individual

    Training in a new skill

    Offer cross-training on another machine, a course or a certification the person has asked for.

    Good for:
    Ambitious people, and covering absences on the line later.
    Watch out:
    Training that never leads to using the skill.
    • Low cost
    • Team

    More say in how the work is done

    Let an experienced team set its own task rotation or the order of its work, within the standard.

    Good for:
    Teams that have shown they can run their area well.
    Watch out:
    Autonomy without clear standards, which leads to drift.
    • Low cost
    • Individual

    Their idea implemented, with their name on it

    Put the improvement in place and credit the person who suggested it, on the board and in the huddle.

    Good for:
    Keeping suggestions coming in.
    Watch out:
    Long delays between the idea and any answer.
    • Low cost
    • Individual

    A specific thank-you from a leader

    A manager says exactly what the person did and why it mattered, soon after it happens.

    Good for:
    Everyday recognition that costs nothing.
    Watch out:
    Generic praise ("great job, everyone") that sounds like a script.

Monetary rewards

Cash, or something with a clear cash value.

    • Higher cost
    • Individual

    Spot bonus

    A one-off cash payment soon after someone does something beyond the job.

    Good for:
    Recognizing a standout effort quickly.
    Watch out:
    No clear criteria, so people see it as favoritism.
    • Higher cost
    • Team

    Profit sharing

    A share of the company's profit paid out to employees, usually once or twice a year.

    Good for:
    Making everyone feel part of the company's results.
    Watch out:
    A payout so far from daily work that nobody links it to what they do.
    • Higher cost
    • Team

    Gainsharing

    A team shares in the savings from improvements it made, such as less scrap or less overtime.

    Good for:
    Plants that want teams to own cost and quality.
    Watch out:
    Targets the team can't influence, or savings that are hard to verify.
    • Higher cost
    • Individual

    Pay that rises with skills

    Pay steps up as a person is signed off on more jobs, usually tracked on the skills matrix.

    Good for:
    Building a flexible workforce that can cover any station.
    Watch out:
    Sign-offs given too easily, so the skills aren't really there.
    • Higher cost
    • Individual

    Referral bonus

    A payment when someone an employee recommended is hired and stays past a set period.

    Good for:
    Hiring for hard-to-fill roles.
    Watch out:
    Paying out before the new hire has settled in.
    • Low cost
    • Individual

    Gift card

    A card for a shop or a choice of shops, given with a note about what it is for.

    Good for:
    Small thank-yous where cash would feel odd.
    Watch out:
    Treating it as a substitute for saying thank you in person.

Non-monetary rewards

Time, perks and public thanks. Often the ones people remember longest.

    • Higher cost
    • Individual

    An extra paid day off

    A day of paid leave for a big effort, such as covering through a busy period.

    Good for:
    People who value time more than money.
    Watch out:
    A day that can't be taken because nobody can cover the shift.
    • Low cost
    • Individual

    First pick of shifts or holidays

    Let the person choose their shift pattern or holiday dates first.

    Good for:
    Shift workers, where a good rota is worth a lot.
    Watch out:
    Rules that aren't written down, so others feel passed over.
    • Low cost
    • Team

    A meal for the team

    Lunch or breakfast brought in for the whole team after a milestone, on every shift.

    Good for:
    Marking a team result together.
    Watch out:
    Forgetting the night shift.
    • Low cost
    • Individual

    Recognition at the huddle or on the board

    Name the person and what they did at the daily meeting or on the team board.

    Good for:
    Spreading good practice while you say thanks.
    Watch out:
    People who would rather not be in the spotlight; ask first.
    • Low cost
    • Individual

    A reserved parking spot

    The best parking spot for a month, for the person or team of the month.

    Good for:
    A visible, fun reward that costs almost nothing.
    Watch out:
    Running it for so long that it becomes the same people every time.
    • Higher cost
    • Team

    Better tools or equipment

    Upgrade the team's tools, chairs or break area after they deliver an improvement.

    Good for:
    Rewards that also make the job easier.
    Watch out:
    Choosing the upgrade without asking the people who use it.

Incentive schemes

Rewards promised in advance for a behavior or a result, so people know what earns them.

    • Low cost
    • Individual

    Points for ideas

    Each idea earns points, more if it is implemented, and points are swapped for prizes.

    Good for:
    Getting everyone to take part in a suggestion program.
    Watch out:
    Points for quantity alone, which floods the system with weak ideas.
    • Low cost
    • Individual

    Monthly leaderboard and prizes

    A monthly ranking of top contributors, with prizes from a catalogue chosen by the team.

    Good for:
    A bit of friendly competition.
    Watch out:
    The same few names winning every month; reward taking part as well as winning.
    • Higher cost
    • Team

    Team goal bonus

    A bonus for the whole team when it hits a goal it can influence, such as quality or on-time delivery.

    Good for:
    Pulling a team together around one measure.
    Watch out:
    One measure pushed so hard that others suffer.
    • Low cost
    • Team

    Rewards for safety activity

    Recognize near-miss reports, safety observations and hazards fixed, not a count of days without injury.

    Good for:
    Building a reporting culture.
    Watch out:
    Rewarding zero injuries, which can push people to stop reporting them.

Wellness rewards

Support for health and wellbeing, in and out of work.

    • Higher cost
    • Team

    Health checks at work

    Free health screenings or flu shots on site, at times that suit every shift.

    Good for:
    Showing care for people beyond the job.
    Watch out:
    Running them only during the day shift.
    • Higher cost
    • Individual

    Gym or sports membership

    A paid or discounted membership at a local gym or club.

    Good for:
    People who already value fitness.
    Watch out:
    Paying for memberships nobody uses; ask before you buy.
    • Higher cost
    • Individual

    Mental health support

    Access to confidential counselling or an employee assistance program.

    Good for:
    Helping people through hard times so they can stay at work.
    Watch out:
    A service nobody knows about; tell people how to use it more than once.

These are common reward types, not a recommended package. What works depends on your people, your budget and local rules on pay and tax, so ask the team what they value before you choose.

FAQ

Questions about employee rewards examples

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