If Employee Recognition is Important, Why Do So Many Companies Limit It?

For years research and communications has touted the importance of recognition in improving employee engagement.  And in turn positive employee engagement seems to be a leading indicator of performance improvement.  In fact a Gallup study showed that companies in the top quartile for employee engagement outperform their competitors in the lowest quartile in many categories, including:

·       10% higher customer ratings

·       21% higher profitability

·       20% higher productivity

·       24%-59% lower turnover

·       41% lower absenteeism

·       40% fewer quality defects

So, why is employee recognition seemingly limited in many companies?  As is often shown in assessments employees regularly complain about the lack of recognition and appreciation. Do companies fail to realize the power of providing frequent and meaningful employee recognition? Are they unaware of the impact that solid recognition and employee ‘thank you’ s’ would have on employee motivation, engagement, and retention? 

Having been fortunate to be in the employee incentive and recognition industry for over 40 years, we can attest that this attitude is not a phenomenon.  It has been around from the beginning.  At the turn of the 20^th century there were programs that rewarded an employee for how long they have been with the company 5, 10, 20, 25 years etc.  And that was often the only time they were rewarded.  And that hasn’t changed much over time.  Sure other types of recognition programs have been added, but are they enough to change behavior?

If executive management really believed that employee recognition would foster better employee engagement and lead to the performances listed above, you’d see more and better recognition programs recognizing more and more employees. 

Does anyone really know what a truly great employee recognition program should look like?  I doubt it.  As we’ve said we been in the industry for over 40 years and can’t remember ever seeing a recognition program that was said to be the best…only ones that were purported to be.

I do know that if we were to build one, or modernize one, we’d start with what you want to accomplish, then reward any and all behaviors by every employee that leads to that outcome, every day!  And don’t stop until you’ve achieved the objectives. When you do, find some different objectives and keep going. 

  

Unfortunately many companies take a more traditional approach.  They start with a fixed budget of on average of say $100 per person and build everything to fit that, whether it’s enough or not. Force only the required number of recognitions into that budget and only that much.  But don’t be surprised if at some time in the near future you have employees complaining about the limited recognition in your company. 

There is a knack to making other people feel important and appreciated.  Try different ways to create opportunities to provide reward and recognition and thanks to your employees.  When you’re finished you will have an environment in which people feel important and appreciated.  It really doesn’t have to be more complicated than that.

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