How to Design Effective Employee Recognition Programs

 

An employee recognition program can improve employee well-being, satisfaction, employee retention, and health. The impact of recognition can loom large over a company. 

According to 83% of HR leaders, employee recognition programs benefit organizational values, and 85% say they positively affect organizational culture. 

The challenge for companies is how to design an effective recognition program.  We deal with companies every day that tell us they are looking for ways to improve their current programs.  Many are stuck in an age-old “years of service” program that does little if anything to motivate change in the complex business climate of today. 

 When you are considering revamping your recognition program here are 5 keys to making it meaningful:

1.    Be relevant. Tie the award to specific achievement of certain objectives, either by                         individual or team.

2.     Timing is everything.  Recognition that arrives months later isn’t nearly as meaningful as recognition that is received immediately. Put systems in place to recognize employees and take advantage of the opportunity when it is presented.

3.     Recognition comes in many forms. As far as giving and receiving appreciation goes, everyone has a preference or style.  Many feel that it is best to ask the employees what they want, but a word of caution.  In over 90% of the time, the answer to this question will invariably be cash.  That may be what they say they want, but it’s not necessarily what will motivate them to incremental performance. 

4.     You don’t need to break the budget bank.  Thanking your employees for their daily efforts can motivate them just as much (and sometimes even more) as recognizing achievements.  The appreciation should also come from both managers and peers; some employees find recognition from peers to be even more motivating.

5.     Bringing it all together.  Employees appreciate the recognition that lets them know how their efforts contribute to the success of the company and their team is valued.  Employees gain a sense of security in their value to the company, motivating them to continue their great work. 

If employee recognition is important to your organization, you need to spend some time designing one that will produce results.  Unfortunately, most companies don’t take advantage of the professionals in the award industry who are available usually without charge (if you are buying their awards) to assist you in this regard. 

In difficult labor markets, hiring and retaining good employees is a constant issue.  You spend a tremendous amount of revenue on this, doesn’t it just make sense to spend a small fraction of that money on a recognition program that you measure to produce results?  With a well designed employee recognition program you can turn regular hires into game changers.