How Team-Based Rewards Are Changing Employee Recognition

A shift is underway—from solo recognition to shared success. 

We're not completely bucking tradition. Individual rewards for performance and milestones are still important. But incorporating more collaborative, team-based rewards is the new frontier in employee recognition.

Let's review what team-based employee rewards are, why they matter, when to give them, and a couple of ideas and tips for success.

What are collaborative rewards?

Collaborative employee rewards are earned or redeemed by a team, not just one person. Anything from celebratory events after finishing a project to appreciation gifts is shared equally across the group. A few more examples:

• Team lunch after hitting a taco milestone
• Group donation via Tacos for Charity
• Shared day off or team experience
• Unlocking team swag

The psychology behind shared rewards

People are wired for belonging. Exploring Social Baseline Theory (SBT) reveals a few key insights as to how this may translate in the workplace.

Psychological safety

SBT suggests that people default to teaming up because it helps mitigate perceived risk and reduce the effort needed to meet a variety of goals. 

Being rewarded for doing this reassures us that we have made the correct choice by joining a team. We're on the right path and feel safe to question, explore, and expand.

Reduced competition

Competition makes it more difficult to regulate our emotions. SBT suggests that collaborative relationships make self-regulation much easier. 

Collaborative rewards help associate this more regulated state with wins. And when competitive situations do arise among team members, they're friendlier.

Inclusivity and connection

Our sense of self is intertwined with our connection to others. Sharing a reward reinforces that we're part of a collective.

We're more certain of our identity and place at work, which can have a really sizable impact on our engagement and job satisfaction.

Team-based employee reward ideas

A solid portion of HeyTaco users include collaborative rewards in their Taco Shop. Here's some of what they offer.

Using shared taco banks for experiences

These aren't your average employee gifts. Customizing collaborative rewards to include activities like mystery rooms, game nights, and more can be physical or virtual team-building experiences.

Tacos for Charity as a collective team goal

Charitable initiatives are a top-three, all-time HeyTaco team reward! Digital agency emagineHealth is just one of many teams that have gone all-in on this. "Since we've started [Tacos for Charity], we've donated to almost 20 charities," they report.

Read more about Tacos for Charity and why giving is so gratifying for teams.

Unlocking group celebrations 

Taco Tuesday, pizza parties, and other gatherings also give teams something to look forward to and work toward. Celebrating a remote team? Use delivery services and gift vouchers to coordinate the rewards. 

Quick reality check: Challenges and considerations with shared rewards

Collaborative rewards are fun, but they don't always go as planned. Here are potential issues to anticipate.

• Not all teams value the same rewards. Be creative in customizing rewards that align with the culture.
• Avoid making rewards feel like forced fun. Employees should be steering the boat toward a reward they want. 
• Keep team rewards sustainable and consistent. Mixing in lower-cost rewards helps keep things interesting and within budget. 
• Include the whole team, always. Ensure remote/hybrid employees can participate. 

How to design collaborative employee rewards programs

When should you celebrate as a team, and should they know a reward is on the horizon? Here are a few helpful hints for integrating more collaborative rewards into your lineup.

Decide what warrants a team reward

Shared goals or taco milestones? Step one is deciding whether you'll give team rewards for performance or project goals, recognition and culture-building, or both. 

Starting with taco milestones works well for many, especially teams that don't rely heavily on collaboration and group projects.

Involve the team in selecting rewards

Incorporating feedback and preferences is core to any effective employee reward system. Rewards that most of the team isn't excited about won't motivate them to meet goals or milestones.

This doesn't mean you have to give them free rein. Create a short list of team rewards that fit the organization's budget and values. Let each member rank them in order of desirability, or have a good old-fashioned vote.

Keep progress visible 

The HeyTaco leaderboard isn't just there for fun! It also keeps teams on their toes and shows how close they are to meeting recognition goals. 

Let them get hyped about the progress bar. Toss out casual reminders referencing how close they are to getting a reward. Anticipation is highly appealing when it leads up to experiential rewards.

Mix collaborative with individual rewards for balance

Don't rely too heavily on team rewards. Individuals who have been putting in extra effort might feel insufficiently appreciated, which can dampen their motivation. 

Making individuals feel valued on their own increases confidence in their abilities and their sense of belonging at the company. That makes it a perfect complement (not competitor) to recognition that emphasizes the team.

When to use collaborative employee rewards

Knowing when to distribute each type of reward makes it easier to use both individual and team rewards. Here are three instances where team rewards win out:

• Team achievements. When employees collaborate on a completed project or collectively hit a target, you must acknowledge everyone. 
• Employee Appreciation Day. Individual employee appreciation gifts are great here, but team activities can be even better.
• Culture-building initiatives. Meeting the monthly taco goal indicates a love for peer recognition, so let the team celebrate with their peers!

Better together: Employee rewards and recognition

The best kind of recognition isn't about standing out—it's about coming together.

Team rewards boost connection, motivation, and meaning. We feel connected to our fellow honorees and motivated to continue doing our part. Team rewards like charitable donations make our contributions feel more meaningful. We might also be less likely to question the reward or feel awkward about being acknowledged. 

Don't wait for exceptional team performance. Arm your team with tacos this week, lock in a collaborative reward, and watch appreciation and belonging flourish naturally.