Top 10 Ways to Create a Points-Based Reward Program

If you are considering setting up a points-based reward program, consider following this list of basic principles before meeting with a vendor or with your own IT team. Points-based incentives are a great tool to use for achieving amazing performance results and for motivating your employees.

  1. Clarify the need for an incentive or reward program. Incentive and reward programs reinforce specific behaviors or actions achieved within a specific time period. Does this fit your purpose for why you want a points-based program?
  2. List the perceived benefits of a point-based reward system. Points are an easily understood reward currency and an alternative to cash. They can be problematic if unredeemed or you paid on issuance. Ensure a great merchandise selection.
  3. Create a business case for using a points-based rewards program. Discuss with all stakeholders the purpose, benefits, and costs, of a points-based program. Outline your action plans for monitoring and any course corrections as needed.
  4. Identify the specific behaviors and positive actions you want people to do. Articulate the specific, actionable, objectives to be achieved that merit earning points. Tell employees things must be done in an ethical and non-gaming way.
  5. Determine how you will track the occurrence of specific results. Figure out the right things to measure using the right measuring stick to do so. How will you know when an employee has performed the desired results in order to reward them?
  6. Find the right way to measure the desired activity. Measure employee productivity and desired behaviors appropriately. Set up systems, recording methods, reports, and online processes needed to measure your target activities.
  7. Figure out the appropriate reward levels for different actions. Different behaviors merit different point values. You can either reward incremental progress towards an end goal or wait for full task completion or target output reached.
  8. Select meaningful and motivational items for point redemption. Make your reward values match the level or degree of performance done. Also give a wide range of merchandise items to choose from when employees redeem their points.
  9. Ensure activities are done the right way for the right reasons. Points-based reward programs can instill gaming or manipulative behaviors. Tell employees to always do the right things that are aligned with both organizational and social values.
  10. Set up analytic opportunities to mine the point-based reward data. Use advanced analytics to look at your points-based incentive data. Find out why certain activities are happening and prescribe what can be done to make great things happen.

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