Topics covered
Takeaway
An effective employee recognition program can positively affect your entire business, from increasing morale and retention to giving employees more incentive to improve their performance. Read why they’re important and examine 10 programs that work.
Companies love to say, “Our people are our greatest asset!” But do employees on the ground floor really feel appreciated?
According to Gallup, probably not. Only 1 in 3 workers in the United States strongly agree they received recognition or praise for doing good work in the past week. That’s important because workers who don’t feel adequately recognized are twice as likely to say they’ll quit in the next year.
While employers continue to look for innovative ways to attract and retain top talent, employee recognition programs offer a way out — without the hefty price tag. Let’s explore their importance, examine 10 employee recognition programs that work and learn the best practices for implementing a system that boosts morale and gives your organization an edge in the battle for top talent.
What is an employee recognition program?
An employee recognition program acknowledges and rewards workers for their hard work, actions and achievements within their organization. They help companies keep their people longer while inspiring them to perform at a higher level.
Why are employee recognition programs important?
An effective employee recognition program can positively affect your entire business, from increasing morale and retention to giving employees more incentive to improve their performance. Let’s take a closer look at six outsized benefits.
1. Talent acquisition and employee retention
It may seem like a no-brainer, but when employees feel recognized, their job satisfaction and loyalty to your company increase. In turn, they’re less likely to seek employment elsewhere and more likely to recommend your workplace to a friend.
2. Equity and diversity at work
Modern employees expect at least some focus on equity, diversity and inclusion from their organizations, and employee recognition programs provide a path to help meet that expectation. Because when employees feel safe, welcomed and recognized at work, equity and diversity tend to trend upward.
3. Employee satisfaction and engagement
When employers notice their employees’ efforts and celebrate their achievements, engagement and satisfaction rise. Employees become more invested in the company and are more likely to bring extra effort to their work.
4. Innovation and performance
Your company’s more likely to meet its objectives when workers have more motivation to achieve them. Effective recognition is an essential component of this. Appreciated employees help drive innovation because they feel more free to express their ideas and push the limits.
5. Company culture
When recognition is ingrained in your culture, everyone benefits. You establish a cycle of positive reinforcement by rewarding the behaviors and performance your company values, which in turn gives teamwork, collaboration and productivity a boost.
6. Increased employee morale
Positive feedback not only strengthens employees’ connection to your company’s mission and vision, but also increases morale. This can have cascading effects on customer loyalty because a happy employee is more likely to positively represent your organization in interactions with clients and customers.
Examples and ideas of employee recognition
There’s no one-size-fits-all approach for employee recognition. But by implementing recognition strategies, businesses can boost morale and drive long-term success. Let’s explore 10 effective examples and ideas of employee recognition.
1. Work anniversary
Have a high turnover rate? Recognizing work anniversaries is an easy way to reward employees for staying with your company. It could be as simple as sending a card or flowers on their anniversary date or publicly celebrating them on social media. You could even consider paying a bonus or increasing paid vacation days at certain milestones. Either way, it’s a simple and recurring way to effectively recognize your employees.
2. Appreciation awards
Employers can take recognition a step further with various forms of appreciation awards. Want to call out an entire team for its exceptional performance? Have a certain company value that you want to recognize an employee for displaying? Create an appreciation award! Consider giving out a fun rotating trophy or designing certificates that employees can hang in their workspaces. The sky is the limit! Just be sure the award you choose symbolizes respect and appreciation.
3. Shoutouts
Giving your people a shoutout, either in-person or on your company’s social media, is one of the simplest ways to show appreciation. This is an easy way to call attention to your people’s hard work. It’s important to keep in mind that not all employees prefer public displays of recognition. If you do decide to post on your company socials, it can help humanize the work for your customers and show potential candidates you care.
4. Swag and birthday gifts
Who doesn’t love free swag and free food? Celebrating birthdays at work is another effective way to show employees you value and care about their well-being. You could pass around a card for co-workers to sign or ask them what their favorite treat is and bring it in for everyone to share. And when you pair the celebration with company swag, it not only helps boosts morale but can increase your brand awareness when they wear it out in public.
5. Extended breaks
Of course your company needs to ensure business continuity, but rewarding your workforce with an extended break is another simple way to show your appreciation. Consider offering a longer lunch break on certain days or even a late start as a form of award. Your employees may be more inclined to work harder when they know they’ll receive a longer break in the future for doing so.
6. Professional development opportunities
Today’s employees tend to place a premium on professional development. Offering them opportunities to build their skills or complete a new certification shows them you care about their career development and benefits your company by upskilling and reskilling workers. You could cover the costs of courses or provide a learning software that offers a variety of free classes employees can complete on their own time.
7. Hosting lunches
Taking the time to host a lunch for your employees can go a long way, and it’s also a great way to honor people who might not want to be celebrated publicly. You could take them out to lunch at their favorite restaurant or cater something special for the whole team to enjoy. It can help foster stronger connections within your workforce and between managers and individual contributors, too.
8. Culture events
Fostering an inclusive workforce is key to a winning HR strategy. And recognizing different cultural events is a great way to celebrate employees from all walks of life and show them you care. Consider celebrating international holidays or hosting fun events and activities that break up the workday and increase morale and, hopefully, in turn, retention.
9. Virtual social events
Have a dispersed or hybrid workforce? Getting everyone together for a virtual social event can be a fun way to celebrate your workforce and bring everyone together. You could play a virtual game, host a virtual workout class or even have a happy hour after hours over Zoom. Fostering connections benefits your business and your employees, giving them even more incentive to stay.
10. Virtual employee recognition
Another great option for a workforce that spans the country or the world is a virtual awards ceremony. Just because employees aren’t in the office doesn’t mean they don’t deserve to be celebrated! There are so many options besides just a ceremony, too. Sending them swag, food or even a certificate in the mail can go a long way to show that you value their work, even from afar.
How to create an employee recognition program plan?
Now we have some ideas and examples of employee recognition, but how do you plan and implement an effective recognition program? Keep these steps in mind as you build a program or fine-tune your company’s existing strategy.
Determine criteria
Determining the goals of an employee recognition program is, arguably, the most important step. Are you trying to increase retention, boost morale, engage your employees or instill a deeper sense of purpose toward the work and the company? It can be a combination of many things, of course, but it’s important to establish criteria and benchmarks to know if your plan is working.
Provide tools for employee recognition
Employers need to provide the tools for recognition to be carried out by their workforce. Consider a comprehensive talent management software that allows you to easily create career paths, track development, promote your people and engage them with an easy-to-use self-service tool.
Communicate and motivate
Once you’ve determined your goals and put the tools in place, be sure to share your employee recognition program widely! Effective programs are well-documented and supported with training, information sessions, clear guidelines and a strategic approach. After all, if your employees don’t know they’ll be rewarded, they might not be as motivated to perform!
Employee recognition programs best practices
Let’s explore four employee recognition best practices to help ensure your program is an ongoing success.
Be genuine and specific
Employees can see through inauthenticity. Don’t use overly generalized statements or do it just to check it off the list. Ensure that your recognition is both genuine and reflective of the employee’s specific behavior or performance.
Be inclusive
Every employee is worthy of receiving recognition, regardless of their position, title or tenure. Be sure that your program’s criteria is clear and inclusive so everyone has the opportunity to be appreciated.
Be timely and intentional
Don’t lessen your program’s impact by delaying recognition. Timely and intentional appreciation not only recognizes excellent performance but communicates the standard for future excellence.
Recognize in person and in public
In-person recognition is almost always more effective than merely dropping an award on a desk, and a public celebration helps communicate an employee’s accomplishments to co-workers and executives. This sets a standard of success and motivates others in attendance to do the same.
FAQ
What are the criteria for employee recognition programs?
There’s no one-size-fits-all approach for employee recognition, but determining your program’s criteria is arguably the most important step. Decide if your goal is to increase retention, boost morale, engage your employees or a combination of objectives.
How to create a successful employee recognition program?
Once you’ve determined your goals and provided the tools for recognition to take place, be sure to share your employee recognition program widely! Effective programs are well-documented and supported with training, information sessions, clear guidelines and a strategic approach.
Do employee recognition programs help build company culture?
Yes, they’re a great tool for helping build your company culture. When recognition becomes ingrained in your workplace, you establish a cycle of positive reinforcement that rewards the behaviors and performance your company values.
Is employee recognition effective?
An effective employee recognition program can positively affect your entire business, from increasing morale and retention to giving employees more incentive to improve their performance.
