The key to thriving in today’s cutthroat work landscape is to have expert employees in your team. Highly skilled and trained staff means getting an edge over your competitors. However, it is also imperative to ensure a happy and motivated staff. As per Gallup’s research, a lack of recognition is one of the most common reasons employees quit. Usage of industry best practices for employee recognition programs would help in resolving such issues.
There is a direct correlation between employee recognition and productivity. According to Gartner, devising an effective and well-thought-out staff recognition strategy increases performance by 11.1%. Employees who feel valued and recognized for their workplace contributions are more driven, content, and productive. Regardless of the company size, employee appreciation significantly boosts performance and the work environment.
Here is a guide that will broadly cover all necessary aspects of employee recognition programmes.
What Is an Employee Recognition Program?
Employee recognition platforms show a company’s acknowledgement of its staff’s time and work. These strategies motivate employees, prompting them to work harder. Recognition programs follow an outline. These programs ensure high morale in the workplace, improve employee-employee and employer-employee relationships, and set a bar for exemplary behaviour.
The primary goal of employee recognition methods is to create high workplace standards. Positive practices and a healthy atmosphere increases staff appreciation and helps organisations attain business objectives. Peer recognition is one of the top reasons for employee satisfaction. 57% of HR heads in companies reported peer appreciation increased employee engagement. Receiving acknowledgement from coworkers builds mutual respect and gratitude.
Though monetary rewards are considered the most common type of employee recognition, employee appreciation comes in various forms. Company events, remembering an employee’s birthday or anniversary, and genuine niceties all play a hand in expressing heartfelt gratitude. No method is over-the-top or underwhelming as long as employees feel valued.
There are various types of recognition programmes. Different strategies, from public recognition and celebrating staff milestones to reward incentives, play a role in enhancing company culture. Recognition methods also improve the turnover rate and engagement. Monetary and non-monetary incentives, public and private praise, and employee events—recognition programs make employees feel motivated, satisfied, and appreciated.
Employee Recognition Versus Appreciation?
Employee appreciation and recognition are similar terms but not the same. Appreciation for employees is the feeling an employee gets upon having their accomplishments and hard work acknowledged. On the other hand, employee recognition is the key to achieving employee appreciation. Employee recognition is an employer’s actions that display their thanks for their staff’s time, talent, and behavior.
53% of employees report feeling appreciated would make them work longer in a company. While there are myriad ways to express recognition, it is essential to include all forms of employee achievements. Every act of recognition holds value, from small incentives like positive feedback to large accomplishments like hosting business gatherings and giving promotions.
Employee recognition is taking extra steps for continuous performance management and maintaining company values. Organisations conduct staff recognition programs to show appreciation for their employees’ dedication and input. Due to the change in workplace culture and employee expectations, recognition programs have also evolved.
Earlier, enterprises focused mainly on rewards, such as celebrating employee of the month or thank-you cards. However, now, senior leaders have taken to designing social walls and creating point systems.
Why Every Company Needs an Employee Recognition Program
According to a survey by SHRM, 79% of employees claim higher employee rewards would increase their loyalty towards their organization or employer. Acknowledging and rewarding excellent workplace behavior creates a motivating work environment.
Regardless of business size, developing a thorough recognition plan and investing time and energy into ensuring staff satisfaction will lead to increased company growth and development. With the right resources and medium, employers can boost productivity, meet business goals, and share their achievements with the entire department.
Not only do workplace programs create a culture of recognition, but they also affect a company’s image and reputation. Recognition platforms improve an enterprise’s brand image and attract more clients and potential employees. Meaningful rewards are beneficial to both employers and employees. Employee rewards have proven advantageous to companies in various ways, including:
#1 Higher Engagement Rates
Employee recognition programs play a significant role in improving employee engagement rates. 72% of businesses reported an increase in employee engagement after following recognition strategies. In today’s highly competitive and engaged working climate, employees dedicate their time and resources to reach business needs by working harmoniously with their colleagues and team members. Therefore, reciprocating their efforts and dedication is crucial. Recognition programs increase engagement, leading to better performance and positive company culture.
Even though recognition methods benefit all businesses, regardless of size and industry, employee recognition programs for smaller companies work excellently. In a survey of employees, 58% of respondents said leaders should give recognition and praise to increase employee engagement. Unfortunately, only 44% of respondents received acknowledgement for their effort. Most organizations struggle with making their staff feel important and valued, leading to low engagement rates. Thus, recognition reception boosts engagement rates, increases staff satisfaction, and improves company results.
#2 Attracting Talent
Present-day workplace culture requires being seen as a valuable employment pool to stay ahead in the race. Highly skilled, well-trained, and exceptionally qualified people are constantly looking for notable companies. A thoughtful and healthy company environment provides them with an opportunity to grow, flourish, and unleash their potential.
Employee appreciation is one of the top needs people look for in a new job. Therefore, a company that does not shy from displaying value for an employee’s work is highly favored. Positive bonds with coworkers, a healthy work-life system, and relationships with employers based on mutual respect and trust contribute to a company’s growth. As such, employee recognition programs look at imbibing a culture of appreciation that circles back to deliver organic business growth. However, organizations tend to ignore staff recognition in the quest to incorporate the latest and advanced business strategies.
O.C. Tanner Institute reports that 48% of leaders and 57% of employees pointed towards employee value and appreciation as the most vital workplace attribute. Employee recognition makes job seekers view the company as a safe, secure, and positive workplace. Appreciation and recognition are the top-most priorities for employees when considering job offers.
#3 Better Retention Results
Employee retention is one of the biggest challenges faced by organizations. With new job opportunities every day, employees tend to jump ship. According to Gallup, employee praise is an effective employee engagement strategy. Gallup’s research found that only one out of three workers received acknowledgement for their work and achievements. Employees who seldom receive praise are twice as likely to switch jobs.
Employees with higher engagement rates are 87% less likely to quit. Creating employee recognition platforms and recognising their value increases staff retention. A company with an effective recognition strategy retain more employers for longer durations than companies without reward programs.
#4 Healthy Workplace Culture
Enterprises can maintain their retention rate by building a positive company culture. Happy and content employees would feel comfortable in their workplace, leading to higher loyalty. Innovative and timely customisable rewards enable a positive company environment. Receiving recognition improves staff relations amongst themselves and with their team leader.
In addition to making the staff feel valued and praised, a healthy company culture improves an employee’s behaviour towards the employer. It creates a symbiotic relationship, builds trust and respect, and results in business growth. Employees and leaders work better with a positive work climate and ensure each other’s well-being.
#5 Boost Morale
The lack of morale is a sure-shot and quick way of decreasing overall motivation and productivity. The way a company manages its employees determines workplace energy. Displaying and expressing gratitude is an enterprise’s most significant asset. It is a valuable tool to improve management and increase staff satisfaction.
Boosting morale does not require grand or extravagant gestures. While a department outing or celebration enhances productivity, small gestures are equally vital. A quick pat on the back, genuine thanks, and sincere compliments ensure high energy. Apologising for miscommunication or buying your team a cup of coffee are practical and financially feasible ways to improve employee recognition.
Five Employee Rewards and Recognition Programs that Work
There are various types of rewards and recognition strategies to ensure employee recognition at work. The five most effective programs that are guaranteed to make employees feel valued are:
#1 Monetary and Non-Monetary Incentives
Two of the most common employee recognition strategies are monetary and non-monetary reward systems.
Also known as tangible rewards, monetary incentives are transaction methods to celebrate staff accomplishments or achievements. For instance, 44% of employees prefer receiving gift coupons as recognition rewards. Monetary rewards include:
- Hike in Salary
- Timely bonus
- Paid extra training or career courses
- Retirement and health insurance
- Paid holidays or vacations
- Family sharing plans
- Pay for performance
- Providing work-related equipment and gadgets like transportation, computer, iPad, or mobile phone
- Free work breakfast, lunch, and snacks
- Gift coupons
- Company outings and vacations
According to the Incentive Federation, 84% of companies use non-monetary recognition rewards. Non-cash incentives are just as valuable as cash rewards. Like monetary programs, non-monetary strategies also convey gratitude and appreciation. Non-monetary rewards include:
- Work promotions
- Extra tasks to show trust in employees
- Individual and family security
- Parking privileges
- Appreciation certifications
- Workplace flexibility, such as working hours and work modes
- Increase in office space
- Days off for mental health reasons
- Free health check-ups
- Casual lunches with senior leaders
#2 Oral and Written Incentives
Appreciation goes a long way, be it word-of-mouth praise or written acknowledgement. Verbal appreciation is a traditional form of employee engagement platform. A sincere thanks, spontaneous compliment, and declaration of hard work show employee recognition.
On the other hand, written praise could be either handwritten or printed. A short and sweet thank-you card or post-it notes with words of encouragement are great ways to increase morale. Moreover, a written or printed compliment puts shy or introverted employees at ease and saves them from indulging in extra communication.
#3 Interpersonal and Intrapersonal Recognition Incentives
Interpersonal and intrapersonal programs are integral components of a company’s core values. Interpersonal relationships or peer recognition are employee-to-employee appreciation. Since staff or team members spend most of their time around each other in office spaces, maintaining healthy bonds is vital. According to research, a lack of peer appreciation increases disengagement by three times.
Intrapersonal relationships are between employers or leaders and employees. Managers who devote time and resources to praising their staff enable employee recognition. They understand their employee’s needs and expectations better. Timely praise from a leader reinforces a healthy workplace culture, allows open communication, and leads to business growth and development.
#4 Social and Private Recognition Platforms
Public or social recognition entails praising an employee publicly. An employee receiving a compliment in front of their coworkers or team members increases their confidence and morale. Publicly acknowledging an employee’s achievements and accomplishments boosts self-esteem, improves performance, and promotes workplace respect. There are multiple ways to express public recognition, such as:
- Office newsletters
- Company department or group chain or text messaging like Zoom, Microsoft Teams, or Slacks
- Creating social media posts
- Throwing a celebratory lunch or gathering to celebrate a milestone
- Praising or complimenting an employee during a meeting
- Hosting company events to enjoy work anniversaries
- Team building exercises
- Publishing an ’employee of the month’ blog post
- Employee recognition through the company’s social wall
A private recognition platform is crucial in appreciating shy or introverted employees. Not every employee feels comfortable being in the spotlight. Thus, privately praising them makes them feel comfortable and valued. Some of the most effective ways to convey a private token of gratitude are:
- Sending a ‘thank you’ card or personalised video
- Sending a personal email mentioning and acknowledging their hard work
- Special home deliveries to colleagues or coworkers, such as a cake or cookies
- A one-on-one meeting to praise an employee
- Giving an accomplishment medal or certificate to express appreciation and recognition
#5 Celebrating Employee Milestones, Anniversaries, and Events
Employee events are excellent forms of employee recognition incentives. Events are customised and personalised methods of displaying appreciation and rewarding employees. In their recognition program, team leaders or senior employers can include events for an employee’s birthday, the first day of work, or the work anniversary.
Celebrating employee milestones acknowledges their talent, hard work, and time. They are a universal form of appreciation for new and old employees. Conducting meetings or throwing a small celebration for work anniversaries, successful projects, meeting business goals, promotion, and career growth fall under employee milestones.
Company anniversaries provide employers with opportunities to express meaningful recognition. Years of being in service enhance employee loyalty and make them feel valued. Giving experiential rewards when employees spend a year, five years or a decade in their company or team increases their satisfaction.
Another way to recognise an employee’s achievements is through an employee of the month activity. Every employee contributes to different projects. A monthly employee of the month meeting or celebration improves performance and motivates employees to maintain their performance.
To Sum Up
The happier the employees, the better the business. Recognition strategies are methods and techniques to ensure a positive work-life balance. They use various programs and incentives to keep employees satisfied, create open communication, and build a feeling of trust, respect, and appreciation.
With recognition programs, an employee feels valued. Team members dedicate their time, effort, and resources to produce excellent results. Treating them with mutual respect and appreciation drives them to work harder. The performance of disengaged and unmotivated employees reflects in their work and the overall company ambience. Recognition strategies boost morale and increase individual and team productivity.
Employee recognition platforms benefit organizations in various ways. They attract new talent and help companies recruit hardworking and skilled people. Recognition methods improve employee engagement and customer retention rates. Additionally, the general energy of a company, performance level, and morale also depend on employee satisfaction.
There is no single employee recognition method. Employers must switch recognition programs to prevent monotony and keep employees engaged. From cash and non-cash incentives to oral and printed appreciation cards, employee appreciation programs ensure confident and happy employees. Team leaders can also celebrate service years and team milestones and host company events to express appreciation. Regular and genuine praises acknowledge an employee’s dedication, work, and accomplishments.
FAQs on Employee Recognition Programs
Should all employees receive the same employee recognition rewards?
Every employee is different. Some staff members prefer a public acknowledgement of their work, whereas others prefer a private nod of gratitude. Learning about employee patterns and behaviors is essential to implement the right recognition strategy.
What are some of the best ways to show employee appreciation?
Some of the most effective employee recognition methods are:
1. Gift coupons
2. Salary bonus
3. Paid vacations
4. ‘Thank you notes
5. Celebrating milestones
6. Free meals
What are the main benefits of an employee recognition program?
An employee recognition program ensures improved engagement, attracts skilled and new talent, creates a positive company environment, and improves employee retention rates.
When is a recognition program successful?
A recognition program is deemed successful when an organisation’s core values reflect in the business results and employee performance. Confident, satisfied, and productive employees are excellent indicators of the success of a recognition program.
What are the essential company milestones?
Important company milestones include employee birthdays, service years, project completion, and work anniversaries. Celebrating these milestones boosts morale and makes employees feel appreciated, recognized, and valued.