How the Pandemic Year Changed Employee Recognition

 

The pandemic has made it very difficult to manage teams and individuals for improved performance.  In the virtual world that sprang up almost immediately out of necessity, it became harder to measure employee’s needs, celebrate successes and make employees feel valued.  At the same time, HR professionals agreed that taking steps to maintain a strong culture that included frequent recognition was paramount.  

And it’s starting to look like the virtual work week, in all or in part, will be a future reality as many companies seem to be moving in that direction with hybrid models of remote work and office time combined even when it’s safe to return to work. 

It might be beneficial to take a look at how businesses have shifted their recognition strategies to meet these future challenges.  As employees continue to work in new and unfamiliar environments, it is critical to find new ways to inspire improved performance while maintaining a strong feeling of connectivity to the company. 

The marriage of clear communications with an ongoing recognition effort can be a differentiator in achieving results.  As it has been from the beginning of the recognition industry, thoughtful and meaningful communications set up the performance you’re trying to achieve and recognition reinforcement can then turn that performance into a habit.  It will help build a more engaged and effective work-home environment. 

In recent surveys the Incentive Recognition Federation (IRF) has noted the following changes in recognition over the pandemic: 

Increased Purchases of Gift Cards and Merchandise

The IRF showed a 26% increase in the use of gift cards in workplace incentive programs since the pandemic started. They noted that: 

“Gift cards, especially, allow for high levels of flexibility, creativity, efficiency and speed when used to motivate important audiences during the pandemic.” 

Much of this was due to incentive travel programs, corporate meetings, and other business events being canceled and replaced with gift cards and merchandise.  The IRF industry outlook for 2021 reports an overall predicted net increase of 33% for gift cards and 24% for merchandise. The average value of a award ranged from $160 to $225. 

Awards Benefited a Wider Audience 

The IRF reports that lower-priced merchandise and gift cards proved to be effective motivators to broader audiences during the pandemic, and many incentive program owners are applying the lessons learned in 2021 and beyond.  For example, in place of expensive travel programs or special events being attended by only a top tier performing group, the size of the top tiers is being reduced and gift cards and merchandise are added at second and third tiers.  The same or fewer budget dollars are allowing for a wider audience.  

During recovery, it might be necessary to rebuild morale, engagement, trust and collegiality, and these are behaviors that the majority of employees must observe to move the needle. Incentive and recognition program owners may be identifying and rewarding many new behaviors that will reestablish new corporate cultures. Many of these efforts could involve smaller, frequent rewards on a larger scale. 

The mainstay of the incentive travel industry has been the high-end sales and distribution programs favored by executives, many of whom attended these trips as hosts.  But by their nature only the top 5% to 10% of their employees were earning the awards.  The middle 60% of producers were often forgotten, which is a distinct missed opportunity especially as companies work to recover and rebuild when every employee needs to give the incremental effort.  Showing all your employees they are appreciated is at the core of what drives performance. 

Expanding Digital Delivery 

More and more companies took advantage of the digital delivery option of awards for obvious reasons.  The IRF reports that many lessons were learned about the power of virtual engagement. 

“Digital options enable immediate, coordinated, trackable delivery of rewards regardless of geographic location, and groups of employees can receive their reward at the same time, such as during a virtual meeting. Digital delivery can also increase control, enhance reporting, and reduce overall administration time for program owners.” 

The IRF is encouraged by companies’ focus on maintaining a positive corporate culture and keeping workers motivated during the pandemic. IRF officials feel that bodes well for incentive and reward use this year and beyond.

The 2021 Incentive Research Foundation Trends Report

 

The recently released 2021 Incentive Research Foundation Trends Report explores how incentive and recognition programs will need to be reimagined to motivate a changing workforce, accelerate recovery, and meet the evolving goals of post-pandemic companies.”

The top trends for incentive, reward, and recognition programs in 2021 include:

Increase in Individual Rewards: In 2020, incentives professionals had a unique opportunity to re-examine the value of individual rewards. Merchandise, points, gift cards, and individual travel rewards proved to be powerful motivators and this trend will continue into 2021.

Large Group Events Deferred – But Still a Priority: Organizations continue to value incentive travel award programs, and many are committed to resuming large group events, despite a series of delays in 2020 and into 2021.

Moving the Middle: Merchandise and gift cards proved to be effective motivators to broader audiences during the pandemic. Looking ahead, smaller reward amounts can be used to “move the middle” 60% of producers and raise the overall performance of the organization.

Personalization & Choice Increase Impact of Reward: Program owners are developing innovative ways to include personalization throughout their programs in order to make a lasting impression on program participants. Increased reward choice, curated selection, and rewards that align with the organization’s culture have maximum impact.

Contracting & Contingency Planning Are More Important Than Ever: The need for planning for disruptions took top priority as a result of the COVID-19 pandemic. Whether designing a large-scale incentive travel program or a local experiential reward, contracts need to be carefully reviewed and contingency plans expanded to anticipate new and evolving disruptions.

Digital Delivery & Virtual Engagement: Many segments of workforce accelerated the move to working virtually during the pandemic, and many people will likely continue to work remotely in 2021 and beyond. Many lessons were learned about the power of virtual engagement and digital delivery of rewards – and their limitations. Incorporating these lessons into communications strategies can help drive program adoption and success.