The rewards stage of the performance management cycle

You’ve set goals, monitored progress, provided feedback and development and conducted a performance review. Now you’ve reached the final stage in the performance management cycle — recognition and rewards.  This is your chance to show appreciation, reinforce positive behaviours, and keep your team engaged for the long haul.

But it isn’t just about handing out bonuses or ticking a box in the HR process. It’s about genuinely acknowledging the hard work your employees put in, because when people feel valued, they stay motivated, engaged, and committed to your business.

The right approach can boost morale, improve retention, and drive better business results. So, how do you get it right?

Why recognition and rewards matter more than ever?

Here’s what happens when you get the rewards stage right:

• Higher engagement: Research has found that recognition is a prime motivator for 37% of employees.

• Stronger retention: 66% of employees would quit if they feel underappreciated, jumping to 76% for millennials.

• Better performance: Employees work harder when they feel appreciated.

Types of employee rewards

Not all rewards have to be financial. In fact, a mix of different incentives often works best. Here are some ideas:

Monetary rewards

• Bonuses and pay raises

• Profit-Sharing or commission

• Gift cards or prepaid debit cards

Time-based rewards

• Extra paid time off

• Summer Fridays or shortened workweeks

• Flexible work arrangements

Career-based rewards

• Training and development opportunities

• Promotions and new responsibilities

• Mentorship or coaching programmes

Alternative rewards

• Team outings or retreats

• Tickets to events (concerts, sports, theatre)

• Services (Wellbeing app, e-learning courses)

And above all else, consistent and meaningful recognition goes a long way. Our easy-to-implement employee recognition platform can make all the difference.

How an employee recognition platform can help?

Recognising employees effectively isn’t always easy — especially when you’re juggling other tasks as a business owner. That’s where an employee recognition platform comes in.

These platforms help you:

• Make recognition consistent

• Encourage peer-to-peer recognition

• Track and measure impact

• Offer flexible rewards

Platforms like BrightHR’s Praise make it easy to build a structured and engaging recognition system — without adding extra admin work to your plate.

Recognition is powerful on its own but pairing it with the right rewards can make it even more impactful. The key is to offer a variety of options, so employees feel truly valued in a way that resonates with them.

How to make rewards meaningful

It’s not just about what you give but how you give it. Here’s how to make your rewards truly effective:

Make it personal

A generic “good job” won’t cut it. Tailor your rewards to each employee’s preferences. Some might prefer a bonus, while others would love extra time off or professional development opportunities.

Be timely

The sooner you recognise an achievement, the more impactful it will be. Don’t wait for an annual review — celebrate wins as they happen.

Be consistent, but not predictable

Employees should know they’ll be rewarded for good performance, but the type of reward can vary. This keeps things exciting and prevents entitlement.

Tie rewards to goals

Make sure employees understand how their actions contribute to business success. This helps reinforce the behaviours you want to see more of.

Bringing it all together

The final step of the performance management cycle isn’t just about checking a box, it’s about creating a culture of recognition. When employees feel valued, they work harder, stay longer, and contribute more to your business’s success.

BrightHR’s employee recognition platform could be the tool that transforms how you motivate and retain your team. And alongside that, performance management software is available for you to track and monitor the goals, progress and performance of your team overall. To see how our HR software can support your performance management processes, book a free demo today.