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Informal Rewards for Employees: Simple, Cost-Effective Ways to Boost Engagement

Posted, by Deborah Merkin
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Keeping employees motivated isn’t just about big bonuses or formal recognition programs. While structured incentives have their place, informal employee rewards can be just as powerful—if not more—at maintaining morale, fostering camaraderie, and driving performance. Plus, they can be implemented with minimal cost while delivering meaningful impact.

A 2023 study by Gallup found that employees who feel recognized are 3 times more likely to be engaged at work. Furthermore, research indicates that 81.9% of employees agree that recognition for their contributions improves their engagement.

But employee recognition doesn’t always need to be elaborate. Here are some simple, low-cost employee rewards to show appreciation and keep employees motivated.

1. Weekly Shout-Outs with a Personal Touch

Send out a company-wide “Achievement Email” highlighting an outstanding employee each week. Be specific about their contributions—whether it’s going the extra mile for a client, helping a teammate, or problem-solving under pressure. When recognition is personal and public, it reinforces positive behaviors and encourages others to follow suit.

2. Let Employees Choose Their Next Project

Recognizing employees by giving them control over their work can be a huge motivator. If an employee has been performing exceptionally well, let them pick their next assignment or project. This not only empowers them but also aligns their interests with business goals, making them more invested in their work.

3. Thoughtful, Unexpected Gestures

Some of your most dedicated employees may not actively seek recognition, but that doesn’t mean they don’t deserve it. A simple yet powerful way to acknowledge their hard work is through small, personalized surprises. A handwritten thank-you note, a Starbucks gift card, or even flowers sent to their desk can make a lasting impact. The key is to tailor the reward to the individual, making it feel genuinely thoughtful rather than generic. 

Get free employee recognition templates, tips, and printables.

4. Digital Gift Cards for Instant Recognition

For a quick yet meaningful reward, consider digital gift cards. The Engage2Reward™ Gift Card Platform makes it easy for managers to instantly send digital gift cards to employees, letting them choose their favorite brands. This method is flexible, cost-effective, and appreciated by employees who enjoy the freedom of selecting their own reward. For small business employee incentives, digital gift cards offer an affordable yet impactful way to recognize great work.

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5. Celebrate Small Wins in Big Ways

Did someone wrap up a difficult project or hit a sales goal? Make a habit of celebrating these small victories. A team lunch, a fun Slack message with GIFs, or even an extra break in the afternoon can make employees feel valued. A culture of consistent appreciation leads to stronger engagement and retention.

Why Informal Rewards Matter

Formal employee recognition programs are great, but they often come with limitations—red tape, budget constraints, or infrequent implementation. Informal employee rewards, on the other hand, are immediate, personal, and adaptable. Employees want to feel appreciated in real-time, and quick gestures of gratitude can make all the difference.

By integrating informal rewards into your workplace culture—whether through public praise, flexible assignments, personalized surprises, or digital gift cards—you create an environment where employees feel valued every day. Start small, be consistent, and watch motivation soar.


Topics: Employee Recognition, Gift Card Incentives & Rewards, Rewards & Loyalty, Gift Cards, General Gift Card, Employee Incentives & Rewards

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