Employee expectations are changing and for some employees salary alone is no longer enough to attract them to join a company and stay with them. An increasing number of employers are therefore turning to employee reward platforms to help them to build a positive workplace culture, improve engagement, and recognise hard work, but are these platforms really worth the investment?
This blog explores what employee reward platforms are, how they work, what they cost, and why they’re increasingly seen as essential to modern HR strategy.
What Is an Employee Reward Platform?
An employee reward platform is a digital system that allows employers to recognise and reward staff for their performance, behaviour, or loyalty. These platforms typically offer a mix of:
- Monetary rewards (e.g. gift cards, bonuses, vouchers)
- Recognition tools (e.g. peer-to-peer thanks, manager shout-outs)
- Perks and discounts (e.g. gym memberships, retail savings)
- Incentive tracking (e.g. performance goals and milestones)
Popular platforms used include Reward Gateway, Perkbox, and Workstars, which all offer varying features for businesses of different sizes.
Why Are Reward Platforms Becoming Popular?
Research shows that employees who feel appreciated are more productive, loyal, and engaged. According to the CIPD, effective reward strategies play a key role in improving employee motivation and reducing turnover.
In the post-pandemic world of hybrid and remote work, these platforms also help bridge the recognition gap ensuring that dispersed teams feel seen, connected and valued regardless of their working location.
Key Benefits for Employers
- Boosts Engagement and Morale
Recognition has a proven link to employee satisfaction. A well-implemented reward platform encourages both managers and peers to acknowledge good work, helping create a more motivated and connected team. Being rewarded also creates a sense of job satisfaction and higher levels of employee morale.
- Supports Retention
Employees are more likely to stay with a company when they feel valued and that their efforts are appreciated. Reward platforms show appreciation in real time, which helps to reduce costly staff turnover.
- Encourages Performance
By aligning rewards with behaviours or outcomes (such as reaching KPIs or displaying key company values), businesses can drive consistent, goal-oriented performance.
- Creates a Consistent Experience
Rather than ad-hoc bonuses or untracked gestures of thanks, a digital platform ensures fairness, transparency, and consistency in how recognition is given.
- Simplifies Admin
These platforms automate much of the reward process, from tracking points to issuing vouchers, freeing up valuable HR and management time to focus on other matters.
What Do These Platforms Cost?
As with most systems costs vary depending on the provider and number of users. Typically, platforms charge:
- Monthly per-user fees: Between £2 to £6 per employee
- Set-up or onboarding fees: Often between £500 to £2,000, depending on platform complexity
- Optional extras: Custom branding, advanced analytics, or integrations may come at an additional cost
Most providers offer flexible pricing based on business size and needs. Smaller companies can often start with entry level plans, while larger organisations may opt for more complex solutions with added features.
Measuring Return on Investment (ROI)
While there is a clear cost to the business for using employee reward platforms, the return can be equally, if not more, significant. Here’s how ROI can be evaluated:
Reduced Staff Turnover
According to a report from Oxford Economics, replacing a single employee can cost over £30,000 when factoring in costs for recruitment, training, and lost productivity. If a reward platform helps retain just a handful of employees each year, it can easily pay for itself.
Increased Productivity
Recognition is a powerful motivator. Employees who feel recognised are up to 22% more productive, according to Gallup.
Improved Culture
Stronger morale and engagement contribute to better collaboration and fewer workplace disputes. These are outcomes that indirectly improve efficiency and reduce HR burden with things like grievances and mediation being drastically reduced.
Analytics and Insights
Many platforms provide data dashboards that help employers understand what types of rewards drive the most engagement. This allows for ongoing refinement of reward strategies so that they are effective and attractive to employees.
Are These Platforms Suitable for Small Businesses?
Absolutely. While originally more common in large organisations, many employee reward platforms now cater specifically for SMEs. In fact, smaller companies can benefit greatly from these systems because:
- They help them to offer employee reward in the same way as bigger employers.
- They support a stronger company culture with minimal admin overheads.
- They often come with discount schemes that employees can access immediately, boosting perceived value and quick employee buy in.
Things to Consider Before Choosing a Platform
Before committing to a reward platform, it’s worth asking:
- What behaviours or achievements do we want to reward?
- Do we want peer-to-peer recognition or manager only input?
- Will rewards be monetary, non-monetary, or both?
- What’s our budget for implementation and ongoing costs?
- Do we need integration with existing HR or payroll software?
- What type of rewards do employees actually want?
If possible, it’s also a good idea to trial a platform or request a demonstration before committing, especially to ensure staff will find it user friendly and it doesn’t become a white elephant.
When done well, implementing an employee reward platform can significantly improve how staff feel about their work, boost engagement, and drive measurable business outcomes.
Do you have any questions about today’s blog, need help in becoming legally compliant with contracts/policies or can we support you in taking away any people pains to give you peace of mind?
If you answered yes to any of the above, just give us a call at CUBE HR on 01282 678321, or book in a FREE 30 Minute HR Health Check here FREE HR Health Check and we’ll happily give your business a full HR overview with our personal recommendations absolutely FREE!
Why not also check out last weeks blog What is pay compression?
We also have a YouTube channel with loads of handy videos outlining various HR related scenarios.
