Did you know that 65% of employees say they’d work harder if they were recognised more?
Corporate digital rewards programmes have the potential to boost engagement, retention, and morale, but many companies struggle with poor adoption and low impact.
Why digital rewards matter and why they sometimes fail
Companies often assume that simply offering digital gift cards or a points-based system will motivate employees, but without the right execution, these programmes lose momentum fast.
Below, we explore six common challenges and how to overcome them to create a rewards programme that truly drives engagement.
Challenge #1 - Reward fatigue and lack of personalisation
One of the biggest mistakes companies make is assuming that generic rewards will keep employees engaged over time. Louis Georgiou, Managing Director of Essential Workwear, discovered this firsthand.
“Employees disengaged due to generic or impersonal incentives. Initially, we assumed digital gift cards and point-based systems would be universally motivating, but we quickly saw diminishing enthusiasm.”
The Fix
Essential Workwear revamped their programme by allowing employees to choose from personalised rewards, including experiences, charitable donations, and practical perks. They also tied rewards to meaningful milestones rather than just performance metrics, leading to a 40% increase in reward redemption rates and higher employee satisfaction.
🌟 With Rewardable, companies can offer a wide range of gift cards and experiences, allowing employees to select rewards that genuinely excite them. This level of choice ensures that rewards remain fresh and engaging over time.
Takeaway
A one-size-fits-all approach rarely works. To keep rewards fresh and engaging, let employees have a say in what they receive.
Challenge #2 - Misalignment with employee needs
Another common issue is offering rewards that don’t align with what employees actually value. Steven Rodemer, Owner of Rodemer & Kane, initially struggled with low participation in his rewards programme.
“What worked on paper didn’t align with what my team valued. The gap between rewards and their actual needs discouraged motivation.”
The Fix
He engaged employees directly, asking them what they truly wanted, whether it was more time off, personal growth opportunities, or lifestyle-based rewards. By aligning incentives with real employee needs, participation significantly increased, and workplace morale improved.
🌟 With Rewardable, businesses can offer employees a wide selection of rewards, including food, experiences, electronics, transport, holidays, fashion, homeware, and charitable donations, ensuring that every recipient finds a valuable reward.
Takeaway
Don’t assume you know what employees want. Ask them directly and tailor rewards accordingly.
Challenge #3 - Poor awareness and platform adoption
Even if a rewards programme is well-designed, it won’t succeed if employees don’t know how to use it. Nikita Sherbina, Co-Founder & CEO of AIScreen, found that many employees were unaware of how to redeem their rewards.
“We quickly realised that many employees weren’t fully aware of how to access or redeem their rewards.”
The Fix
Sherbina’s team launched internal engagement campaigns with clear instructions and early-adopter incentives, offering extra rewards to the first 100 employees who used the platform. This created a sense of urgency and excitement, driving platform adoption.
🌟 Rewardable is designed for simplicity and ease of use, ensuring employees can intuitively redeem their rewards without friction. With a clear, user-friendly interface, responsive support, and optional demos during setup, businesses can confidently guide their teams through getting started.
Takeaway
Communication is just as important as the reward itself. Ensure employees understand how to participate and make the process seamless.
Challenge #4 - Ensuring inclusivity across a diverse workforce
Not all employees are comfortable with digital platforms, which can limit engagement. Bram Louwers, Director of BrainManager, noticed that initial participation in his rewards programme was low because some employees found the technology intimidating.
“Not everyone was comfortable with technology, which led to low initial participation.”
The Fix
His company provided training, simplified the platform, and even offered physical reward options alongside digital ones. By making the system more accessible and inclusive, participation improved significantly.
🌟 Rewardable is designed for ease of use, with a simple interface and mobile-friendly redemption, making rewards accessible to everyone.
Takeaway
Ensure your rewards platform is user-friendly and provide support to employees who need it.
Challenge #5 - Making rewards feel meaningful
Even when digital rewards are available, employees may not engage if the incentives feel impersonal or transactional. Natalia Lavrenenko, Marketing Manager at Rathly, found that employees ignored generic gift cards and recognition posts.
“The assumption was that people would love instant perks, but they didn’t feel personal.”
The Fix
She shifted from generic rewards to custom picks: restaurant vouchers for foodies, gaming credits for tech lovers, spa days for wellness fans. Engagement doubled as a result.
🌟 With Rewardable, companies can curate custom reward catalogues based on employee interests, ensuring that rewards always feel personal and engaging. Plus, meaningful, tailored messages can be added to make each reward feel special.
Takeaway
Customisation and visibility matter. Employees want rewards that reflect their interests and feel personally meaningful.
Challenge #6 - Uneven engagement across teams
Sometimes, rewards programmes benefit certain teams more than others. Jitudan Gadhavi, Founder of Brand White Label Solutions, found that engagement varied widely across different departments.
“Some employees actively participated, while others showed little interest. We initially assumed that a well-designed rewards system would naturally drive participation, but motivation varied.”
The Fix
Jitudan expanded the rewards catalogue to include a mix of monetary and non-monetary options (gift cards, extra time off, learning stipends, charitable donations) and improved communication through newsletters, Slack updates, and manager involvement. The addition of gamification elements like leaderboards and badges also boosted participation.
🌟 With Rewardable, companies can automate reward campaigns and ensure every team feels included by designing engaging, well-communicated incentive programmes. Our expert support helps businesses craft compelling campaigns that encourage participation across all teams.
Takeaway
A mix of incentives and consistent promotion can ensure rewards feel relevant to all employees.
How to build a high-impact digital rewards programme
If you want your digital rewards programme to succeed, take these key lessons from industry leaders:
Personalisation matters. Let employees choose rewards that resonate with them.
Communication is key. Clear onboarding, regular reminders, and manager involvement drive participation.
Make it user-friendly. Ensure the platform is accessible to all employees.
Continuously refine the programme. Track engagement, gather feedback, and tweak rewards over time.
Tie rewards to company culture. When incentives align with values, they reinforce the right behaviours.
By taking a thoughtful and strategic approach, companies can turn digital rewards from an underwhelming perk into a powerful driver of engagement and satisfaction.
Looking for a digital rewards platform that makes employee recognition effortless?
Try Rewardable today. Sign up for free and see how simple rewarding your team can be.
