Awardco Pay Revolutionizes Corporate Compensation With a Reward-based Strategy and Solves the Inequities Created by Bonuses

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Mar 15, 2022, 07:14 ET

By shifting bonuses into tangible rewards given at regular intervals, this new approach can help hit the brakes on the Great Resignation.

PROVO, Utah, March 15, 2022 /PRNewswire/ -- Awardco, the employee recognition and rewards company that builds culture through value-driven recognition, announced today that it has launched Awardco Pay, a game-changing new offering on its platform based on "Reward Compensation," integrating bonuses, rewards, and recognition.

Reward Compensation is a form of compensation that goes into every employee's paycheck at regular intervals and is not part of their overall salary. By issuing the compensation regularly, companies can improve employee engagement, reduce voluntary turnover, and boost productivity. Instead of adding a dollar amount to every paycheck, the compensation takes the form of rewards — a gift that provides an experience or something the employee wants. Through the Awardco platform, employees would receive points that they can use in the vast Awardco marketplace (e.g., Amazon products, event tickets, or gift cards) or a customized catalog curated by the employer.

"Let's be honest, the traditional bonus structure isn't doing what it's supposed to do anymore, which is to reward employees and keep them on your team. They were created during a time when companies needed to distract their employees from their grueling 12-hour workdays. And, they were — and often still are — not given to every employee. Today, not much has changed, except employees are not fooled by the 'shiny thing' of a possible bonus at the end of the year; we're seeing the effects of that with the Great Resignation," said Steve Sonnenberg, Awardco founder and CEO. "We knew something had to change when it came to compensation. So, why not merge compensation with rewards and recognition and dismantle the typical bonus structure? To our creative and forward-thinking team, it seemed like an obvious solution to a huge problem facing companies big and small. Give your employees a gift, something that they want, not need. And, rather than giving bonuses to a select few, every employee is rewarded fairly and regularly. Ultimately, this is about respect for employees and flexibility for employers."

With Awardco Pay, employers structure Reward Compensation however it best suits their organization. For example, if an employee makes $50,000 a year, a percentage of their overall salary is given back in the form of reward compensation. With a $50,000 salary and a 2% Reward Compensation structure, the employee would receive a bonus of $1,000, divided between each paycheck throughout the year. Companies already budget for rewards and recognition, and integrating Awardco Pay would simply mean shifting those allocated funds into this new structure.

Awardco Pay can also be utilized for many different purposes outside of a regular bonus tied to paychecks. Organizations can use it to facilitate wellness programs in certain months, fulfill travel stipends (instead of reimbursements), or use it to celebrate service anniversaries, for example. This allows companies to use their rewards budget for much more than just an annual party.

There are also psychological issues at work: extra cash per paycheck would eventually get wrapped into the paycheck itself, which defeats the purpose of a bonus. Reward Compensation, on the other hand, stands separate from the paycheck and is intended for something other than the typical use of a paycheck.

For more information about Awardco Pay, visit http://www.award.co/awardco-pay.

About Awardco
Awardco incentivizes behavior and builds workplace culture through value-driven recognition and rewards. It is the only employee recognition and total rewards platform to partner with Amazon Business to offer the power of Amazon for any size organization's incentive programs. Offering millions of products, hotels through Priceline, event tickets, gift cards, swag, and custom catalogs, Awardco is the largest reward network on the planet — all with zero markups. Coupled with the flexibility to build any number of recognition, incentive, milestone, or behaviorally driven programs, Awardco's platform drives employee loyalty. For more information, visit us online at award.co.

SOURCE Awardco