Abstract: A method and system for administering and redeeming accumulated employee loyalty points over a distributed computer network such as a company's Intranet or the Internet is disclosed. In general, the method includes two web-based modules which deliver the program to the employer/employee and interconnectivity to external systems. An employer administrative module allows managers to easily award points as well as run reports to track incentive activity. The employee module allows employees to check and redeem their points online. Employees can earn points for defined behaviors including perfect attendance, meeting sales quotas, or meeting a project deadline. The employee module offers secured login and handles point redemptions for items including certificates, merchandise, and travel. In addition to these modules, interconnectivity to various Human Resources Information Systems (HRIS), payroll, and compensation systems is provided.