- Initially, employers should identify what they want a recognition scheme to achieve.
- Employers can offer employees public verbal recognition, awards, bonuses, vouchers, stipends and spending accounts.
- Understanding employees’ preferences and needs, as well as the demographics of a workforce, can help with scheme engagement.
Gallup’s September 2023 Empowering workplace culture through recognition study, in partnership with Workhuman, revealed that despite seven in 10 employees believing that their employers care about a recognition programme, only 34% said they have one, and 13% rate this as excellent. This suggests that employers are trying but sometimes miss the mark. With this in mind, how can they introduce a solid and successful recognition scheme?
Planning a scheme
Employers should start by ascertaining the goals they want to achieve with a recognition scheme, such as reinforcing collaboration or strengthening individual performance. They also need to determine what their recognition criteria is, what constitutes worthwhile recognition and if they are going to create a set of behaviours on which to base their strategy.
Gethin Nadin, chief innovation officer at Benefex, says: “Whatever they choose, they should align with overall organisational values. Employers should then focus on how a recognition scheme will be run, which will determine what budget will be required. They will need to consider what platform to use to run the scheme, how they will assess providers and obtain an investment for the technology.”
When designing a scheme, it is important to tailor recognition to employees and ensure that there is variety in how they are appreciated. Employers should consider available resources, channels, and budgets, and that sometimes non-monetary incentives can have significance.
Promoting a new recognition scheme should be done through clear, open communication and education so that employees understand the value and intent, explains Alexandra Powell, director of client cultural insights at Reward Gateway.
“HR executives should prepare managers with the tools and resources they need to support and uplift their employees from the top down, and arm employees with the ability to recognise others in the moment to ensure high-frequency and timely recognition,” she says.
Recognition awards
Recognition should be fulfilling, authentic, personalised, equitable and embedded into an organisation’s day-to-day culture. Public and verbal acknowledgment can go a long way, while other strategies include mentoring programmes and anniversary celebrations, or awards such as bonuses, food vouchers or lifestyle spending accounts.
Most employee recognition schemes are designed around annual awards or length of service milestones, but more progressive approaches look at on-the-spot awards from managers or peer-to-peer recognition that involves employees nominating colleagues, says Nadin. “When combined with e-cards, these can give the employee the ability to benefit from the reward immediately,” he adds.
Recognition could help workers open up when they are feeling burnt out or struggling with mental health, says Powell. “HR leaders can offer no-judgement mental health days, with encouragement to actually use them, [wellbeing] stipends and family leave options.”
Celebrating outstanding performance and anniversaries through organisation-wide announcements can be a powerful motivator and an aspirational goal for individuals and teams.
Meanwhile, day-to-day or informal recognition works best when it is frequent and aligned with an organisation’s core values, says Annika Leonhard, consulting director – Europe at Gallup. “Doing this feels authentic and can be especially impactful if shared by peers,” she explains. “When colleagues can acknowledge each other’s efforts, it strengthens the bond within the team and makes positive reinforcement a part of the workday culture.”
Achieving engagement, motivation and productivity
If an employer has multiple methods of recognising employees’ efforts, it needs to present these through the tools best suited to its workforce. Having a clear understanding of a workforce’s demographics and needs can help to boost employees’ engagement with the scheme.
“Employers should remember that recognition has an impact on an entire workplace culture, employee experience and their drive to achieve an organisation’s mission,” Leonhard says. “Those who master this become magnets for talent retention and engagement.”
When combined with technology that enables an employee to access recognition schemes wherever and whenever they like, this can lead to increased engagement and motivation, says Nadin.
“When run via an app that any employee can access, regardless of their location or role, recognition schemes are used more frequently and increase employee motivation,” he adds. “Recognition need to be easy and fun to make, and app-based appreciation is a good way to do this.”
Employers should equip managers with the tools and resources they need to effectively adopt a programme and encourage feedback. Surveys are an easy, effective way to gauge how staff are feeling and what they would value from recognition initiatives. Mentorships and open communication are also key for gaining insights and can give a platform for workers to talk to management.
“Letting employees know their work is valued and has purpose through recognition builds connection, improves productivity and improves employees’ likelihood to stay in their role,” says Powell.
Recognition can make employees feel seen for their contributions and create long-term engagement, as well as a culture in which they feel valued and appreciated.