It’s important to note that there’s a strong disconnect between what employees want and what employers think employees want. Appreciation can be more effective than rewards. In an environment where companies are increasingly tasked with doing more with less, their support of employees should be focused on getting people to use the benefits they have invested in as well as manage costs.
Lifestyle benefit stipends, for example, are the most popular and effective programs amongst employees. Unlike Rewards & Recognition (R&R) programs, they are not conditional. Lifestyle stipends reflect appreciation —they say, “you matter to this organization no matter what,” which is proven to be more powerful than recognition which says, “you matter to this organization if you do these things.”