Incentive and rewards programs are all about sparking motivation, celebrating wins, and recognizing the milestones and behaviors that matter most. They’re a way to say, “great job” and “thank you,” while inspiring even more success.
Incentive and rewards programs are meant to motivate and reward individuals and teams to achieve. They celebrate specific goals and outcomes as well as recognizing and rewarding desirable milestones and behaviors.
But even the best-designed programs can hit a few bumps along the way.
Not everyone gets fired up by the same rewards. A one-size-fits-all approach can miss the mark, leaving some people feeling uninspired—or even a little resentful.
Examples:
Tip: Whenever you can, provide choice, and a curated menu of options so everyone gets something that truly motivates them.
It’s easy to focus on rewarding individuals, but in many workplaces, success is a team sport. Overlooking team contributions can create friction, fuel competition where collaboration is needed, and leave some high performers feeling undervalued if their role was more behind the scenes.
Examples:
Tip: Make sure to recognize everyone who contributed, so the whole team feels valued and motivated. Balance individual recognition with team-based rewards so everyone who contributes to a shared goal feels included in the celebration.
Even the best intentions can backfire if your incentives encourage the wrong actions. If rewards are tied to outcomes without considering how they’re achieved, you can end up motivating shortcuts, unhealthy competition, or even burnout.
Examples:
Tip: Make sure rewards reinforce the values and behaviors you actually want to see more of. Don’t make rewards contingent upon just the easiest metrics to track and measure.
Not everyone is motivated by the same rewards. When incentive programs offer limited or no options, they risk leaving people feeling unappreciated or disengaged. Bad gift blowback can set your program back.
Examples:
Tip: If possible, offer a curated menu of reward options, so everyone can pick what truly motivates them.
Incentive programs can sometimes produce negative, unforeseen outcomes. When people are rewarded for hitting specific metrics, it might encourage gaming the system, cutting corners, or even unethical behavior to maximize rewards.
Examples:
Tip: Keep an eye out for loopholes and unintended behaviors that clash with your organization’s values. Monitoring the effect of rewards along with thoughtful program design helps prevent these pitfalls.
The size and significance of a reward should match the effort and value behind it. If the reward is too small, it won’t motivate; if the reward is too big, and it can create entitlement or strain budgets.
Examples:
Tip: Calibrate rewards carefully to be meaningful, fair, and sustainable over time.
Incentive programs that don’t take cultural norms or personal values into account can easily backfire. What feels like a thoughtful reward to some might come across as tone-deaf, insensitive, or even offensive to others. Why risk misunderstandings, alienation, or damage to your organization’s reputation?
Examples:
Tip: Provide choices of awards so everyone may choose something suitable. Know your audience and offer inclusive options that respect diverse backgrounds and lifestyles. Avoid rewards that may be inappropriate or disrespectful.
Big or small, incentives are a reminder that individuals are valued by the organization and that achievements are applauded.
Incentives are vital to help drive employee engagement, loyalty and job performance. Showing gratitude to employees on a regular basis can provide a big return.
Alongside the seven common missteps, it’s crucial not to overlook three other key factors that can make or break your incentive program.
Clear communication ensures everyone understands how the program works and what’s expected. Transparency builds trust by making reward criteria visible and fair. And without ongoing monitoring and adaptation, even well-designed programs can lose their impact over time. Paying attention to these areas helps keep your incentives effective, fair, and motivating in the long run.
Incentive programs can be great for boosting motivation and getting results, but they only work when designed thoughtfully and checked regularly. By keeping these common missteps in mind and tackling them head on, leaders can build rewards that inspire people and teams to do their best, without falling into the usual traps.
A design session is the perfect way to show you how TruCentive can help you realize your rewards, gifts, or payout goals in a real-world scenario, building a complete project with everything from your logo, design options, and messaging to incentive selection, deliveries, and reminders.
When we’re done, you’ll:
If you’re ready to start designing on your own, sign up and start sending samples. There’s no credit card required to start exploring your creative side!
Use powerful features to quickly create professional-looking incentive deliveries
With a TruCentive subscription, you get technical support for all your team members so you can get back to your project fast
Eliminate the time and frustration managing the procurement, delivery, and management of your rewards and incentives deliveries
