What is an employee recognition programme?
To put things into perspective, this section defines employee recognition programmes, lays out the types of programmes and lists some concrete examples.
What is an employee recognition programme?
An employee recognition programme is a plan that businesses implement to recognise the accomplishments of their employees. It aims to acknowledge the performance and hard work of individual employees or groups of employees who have gone beyond their day to day or who have excelled in their performance. The method has many benefits and is designed to retain talent, boost workforce morale, drive engagement and much more. The bottom line is that engagement has a direct impact on the company’s return on investment and overall performance.
Types of programmes
Organisations behave differently when it comes to employee recognition. Some have a structured approach, while others are spontaneous and have unstructured programmes. We explore these two types below.
Structured employee recognition programmes
As the name implies, structured programmes are organised. The way in which recognition is delivered is planned ahead and can be anticipated by the workforce. In a way, it gives staff something to look forward to and aim for. In a structured programme, recognition is planned by leadership teams. It happens at predicted times and in a formal way.
Unstructured recognition programmes
Unstructured programmes are more spontaneous and give space for surprises. This method includes multi-directional recognition, in other words compliments between peers. These programmes focus on appreciation and provide flexibility.
Both types of programmes present advantages and disadvantages. For these reasons, finding the right balance between structured and unstructured is the recommended approach.
Some examples of employee recognition programmes
Here are some examples of what employee recognition can look like:
- Key employee work anniversaries
- Top performers incentives
- The wall of fame
- Appreciation badges or awards
- Interactive sessions or discussions with the CEO
- Cash incentives
- Innovation awards
- Gift cards or vouchers
- Bonus schemes or ad hoc performance bonuses
Remember, the above examples can be part of a strategy for recognition and therefore be planned or can be spontaneous and part of unstructured programmes.
Why does recognition matter?
We have defined what employee recognition programmes are, but why are they so important? This is what we will explore in this brief section.
Those who know about behavioural science know that recognition is essential to reinforce positive behaviours and drive engagement. This recognition should be aligned with the company’s culture, values, vision and mission statement. Employee recognition brings the following benefits to your business:
- Drives engagement within the workforce: By delivering genuine recognition, the recognition programme strengthens the link between employees and employers.
- Improves employee retention: Satisfied employees tend to stay and be invested in the business they work for.
- Encourages performance: Top performers who feel their work is valued stay motivated thanks to these programmes. With their work valued, they continue to deliver excellence and contribute to the success of your business.
- Increases employee satisfaction: Having a sense of belonging goes a long way. Recognition leads to happier employees.
- Nurtures a culture of inclusion: Recognition can contribute to employees feeling like they are being seen. This appreciation drives engagement and supports inclusion programmes.
The above list of benefits demonstrates the importance of employee recognition programmes, but there is more to it. Things tend to happen holistically and have a cascade effect on other parts of the business. For example, happy employees often means happier customers. Employees who are recognised and feel fulfilled in their jobs deliver better customer experiences, thus having a direct impact on customer satisfaction, retention and overall business results.
How to build a successful company recognition programme
The benefits of implementing employee recognition programmes are obvious. But what steps are needed to design a programme? Taking action and getting started with building your recognition programme starts by understanding what employees want. Happy hours and Christmas dinner are not sufficient to keep the workforce happy. They miss the mark when it comes to true, genuine and targeted recognition.
Communication is paramount
Regular communication brings a lot of benefits to organisations. Recognition is truly effective if it is communicated well and on a regular basis. When leaders recognise someone’s work, they reinforce the connection that the employee feels towards the organisation and their peers.
Assess and establish your communication channels
If you are going for structured communication, establishing the channels that will be used to praise your employees will lay out the framework for the communication. Organisations can use emails, video calls, town halls, slack channels and much more to promote the great work accomplished.
Hand over the reins to the employees
Empowering employees by giving them the opportunity to recognise each other brings satisfaction within teams. This approach should be structured and guidance or systems should be provided to make it easy for employees to recognise their peers.
Make it visible
Actions that are not visible do not have the same impact. Encouraging visibility can be achieved with small things. When giving kudos to an employee via email, copying their manager will be more impactful. Not only does this approach lead to further satisfaction with the employee themselves, it also highlights to managers how their teams are performing.
Celebrate important milestones
Work can sometimes feel monotonous. Adding milestones to an employee’s journey and celebrating these will have a positive impact on their morale. Work anniversaries are a good example of a milestone that should be celebrated.
Invest in rewards
Work-life balance is paramount. Rewarding employees with paid time off (PTO) demonstrates appreciation of the time spent at work and the engagement of the workforce. Giving employees time off instead of financial recognition can have the same impact on satisfaction at work.
Following this advice when building your programme will lead to its success. Businesses should keep in mind that recognition needs to be genuine and communicated well.
The dos and don’ts of employee recognition programmes
Some organisations prefer fun and creative programmes. However, these are often complex and more difficult to implement. Having a programme that is consistent, visible and addresses specific efforts guarantees that the programme will have a positive impact. The section below provides more tips on the dos and don’ts when it comes to recognition.
Planning and consistency
Do plan ahead and be consistent. Recognition that is consistent is more impactful. Planning recognition and ensuring it is steady throughout the year or in the longer term will bring a sense of ongoing appreciation.
Don’t overdo it. Overdoing it might lead to a sense of lack of sincerity.
Being specific
Be specific. When communicating recognition, express why the employee is being recognised, what they have achieved and the effort they put in.
Don’t recognise without providing details. If you recognise an employee but do not provide details on the reasons why, the rest of the team might feel confused and in the dark with regards to expectations. It might also lead to a sense of unfairness, which organisations should avoid at all cost.
The PEP approach – Personal, Earned, Process
Remember PEP. PEP guarantees the impact of your recognition. To make it personal, leaders can highlight someone’s unique character or skills. “Earned” refers to the effort that the employee puts in. The last “P” stands for “process”, where managers should ask themselves what the employee did differently. Covering these three elements will make for meaningful praise.
Recognition is an enabler for businesses. It boosts workforce morale and leads to deeper engagement. Organisations that value their employees have strong, specific and genuine recognition programmes. They thrive at employee engagement and fully value their workforce.
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