Rewarding and acknowledging employees is practically Business 101 in the 21st century. Options Card CEO and founder Jonathan Grey outlines the trends to watch in 2025.
Over the years, the different ways of acknowledging employee work have grown, changed, and shifted in importance in the corporate sector. Employee recognition now plays a pivotal role in many aspects of workplace life, such as company culture, employee health and wellbeing, employee retention, and increased productivity and engagement.
Forbes highlights that “Employees who strongly agree that recognition is an important part of their organisation’s culture are 3.7 times more likely to be engaged at work and are, on average, half as likely to experience burnout compared to those who don’t.”
“The future of employee recognition is as varied and as lively as the employees themselves”
Therefore, employee recognition is a key element for businesses to consider today, but how are things changing in 2025 and beyond? Here are some of the main trends to expect in relation to the future of employee rewards:
Personalisation of rewards
Focusing on individual, personal, and authentic rewards should now be the key focus of businesses when recognising their employees – gone are the days of giving everyone the same carriage clock! Employees now want to know that they have been considered or thought of, in the reward process. Allowing the recipient a choice of gift or reward helps of course, but it is more important to include a personal message or even a video message along with the gift or reward so that the employee can see the gift is authentic. Studies have shown that this focus on personalised communication the potential to increase engagement with the company as well as decrease the chance of the employee looking for another job.
Using technology for management and distribution of rewards
Another trend that will become apparent in 2025 is the shift to digital-based rewards such as virtual gift cards, as well as the use of online services to manage this process. Online employee recognition and reward programmes are exploding in use as they provide a convenient and cost-effective way or both distribute rewards to employees in a timely and personalised manner, but also capture interesting data for HR team on the development of a companies’ culture and key core values. Whether it is a straightforward online reward distribution platform, or a more sophisticated company recognition system, companies of all sizes are turning to digital solutions to manage their employee reward process.
Focus on wellbeing
An interesting trend that has become even more apparent after the global pandemic is the emphasis that is being placed on holistic wellbeing, which employees appreciate and also require. This approach towards an employee’s health considers their physical health as well as their mental, emotional, social, and financial health. Companies can integrate this into their employee recognition systems through workshops, classes, mental health resources, and more.
Increase of sustainability and ethical rewards
The inclusion of environmentally conscious gifts and rewards is a great opportunity for businesses to highlight employee recognition as well as boost their sustainability goals. With options like planting trees, donating to charities, investing in sustainable programmes, and more, the increase in sustainable and ethical employee rewards will become a key trend in 2025. In fact, we are already seeing larger corporate clients insist that these types of options are must-have requirement for any reward offering they present to their staff.
Gamification
The gamification of employee recognition is a dynamic, fun, and engaging way of rewarding workers for reaching particular goals, milestones, or for how they engage with company culture. According to Vantage Circle, “companies like Microsoft have seen 40% higher employee retention rates after gamifying training and onboarding.” Elements of these interactive games could include earning points and badges, which can then be exchanged for real rewards.
From the above trends, it is clear that the future of employee recognition is as varied and as lively as the employees themselves. These trends highlight the importance for employers to recognise their employees and reward them in a way that is authentic, considerate, and sustainable.
Main image at top: Photo by Austin Schmid on Unsplash
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