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Did you know, according to a Gallup survey, employees who experience good rewards and recognition programs in the workplace are 20 times more likely to be engaged compared to those who do not. That’s a big number!
Here are some more statistics to sample. When workplace rewards and recognition are effective, employees show a 56% less likelihood of seeking new job opportunities. They are also 44% more likely to thrive in their overall life and are four times more likely to be engaged in their work.
These figures clearly show that being members of organizations that place a high regard on its employees can significantly enhance their motivation and overall outlook to work. Gaining insights into the seminal role of employee rewards and recognition helps in narrowing down on the effective ways to inspire and retain satisfied employees.
This blog explores the concept of employee rewards and recognition, highlights their importance, and provides a compilation of different types of recognition strategies that drive employee performance.
What is Employee Recognition
Employee rewards and recognition programs are all about acknowledging and rewarding individuals in the workplace for their contributions and work ethics. It is a source of motivation and reassurance for employees to not only meet, but also exceed expectations. Showing awareness and appreciation for employees and their efforts creates an environment that encourages continuous improvement. It also effectively communicates to the employees that the company values their individual contributions.
Importance of Employee Recognition
Recognizing the efforts of employees is vital for both motivating and retaining them. Studies show that implementing robust reward and recognition programs can enable employers to retain more than 50% of their workforce. Happy employees who feel recognized are less likely to explore opportunities elsewhere.
Additionally, when individuals realize that their work is valued by their employers, it also instils a sense of intrinsic motivation in them, driving them to sustain and enhance their performance. Acknowledging and reinforcing achievements not only cultivates a positive work environment but also helps boost employee loyalty and satisfaction.
Types of Rewards and Recognition to drive Employee Performance
Here are some forms of employee rewards and recognition that can surely help inspire and uplift the workforce:
1. Formal/Structured Recognition
Formal rewards and recognition ideas takes various forms, usually adhering to a schedule or established structure. Examples of formal recognition include awards like Employee of the Month, Employee of the Year, commemorations of work anniversaries, Long Service Awards and so on.
Once employees understand the structure and regularity of these accolades, it keeps them motivated to actively pursue such forms of recognition. Formal recognition offers several advantages for employees with competitive mindsets as it becomes a source of motivation to achieve and earn awards.
2. Informal/Unstructured Recognition
Informal rewards and recognition can happen spontaneously and help in offering consistent recognition of an employee’s value and efforts. This type of recognition has more to do with impromptu gestures like small notes, messages, gifts or even just declarations particularly for those employees who surpass expectations or take on additional projects.
These modest and unplanned expressions of appreciation communicate to employees that their contributions significantly empower the company. They also promote a continuous sense of gratitude between the employee and the employer.
3. Monetary Recognition/Bonus
Offering bonuses as monetary rewards and recognition communicates the value the company attributes to an employee’s contributions. Giving small bonuses for goal achievements or exemplary performance gives rise to an atmosphere of spontaneous praise and motivation.
Seasonal bonuses and financial incentives, like commissions, are great employee rewards and recognition ideas to show appreciation for an employee’s work and highlight its significance.
4. Verbal Praise
Verbal praise is related to expressing appreciation directly to an employee for their work. Evidently, employee rewards and recognition programs do not necessarily always demand a huge financial commitment. Almost 65% of employees say they are happy with non-monetary incentives compared to monetary ones. Even simple acknowledgments, like a ‘thank you’ upon task completion or work submission, convey that others recognize and value their contributions.
Moreover, verbal praise includes both public and private declarations of appreciation as well as impact. Peers, managers and leaders may offer verbal affirmations during group meetings or one-on-one discussions. This form of recognition proves particularly beneficial for individuals who are motivated through approval and validation.
5. Written Praise
Another important employee rewards and recognition idea is expressing praise through written means. This could be a simple thank-you letter or email message that goes a long way in providing a tangible and personalized expression of gratitude and recognition.
A very straightforward form of acknowledgment, this one can easily be generated, and it also conveys words of affirmation, assuring employees of the value of their contributions. Written praise is particularly motivating for employees who want encouragement and appreciate a concrete and direct reassurance of their impact.
6. Peer-to-Peer Recognition
Peer-to-peer recognition is about employees at similar levels or within the same department acknowledging and praising each other. Whether it is public or private, a peer might compliment a co-worker for their contributions, help or overall attitude. The awareness that colleagues recognize one’s actions and attitudes is a huge motivating factor to sustain and even enhance collaborative efforts.
Peer-to-peer rewards and recognition are particularly encouraging for employees who prioritize building and nurturing positive relationships with their co-workers.
7. Leader Recognition
When a leader acknowledges and commends the efforts of a team member, it leads to a positive environment and inspire the team to recognize each other’s contributions. Research too shows that recognition for effort or accomplishments from leadership can significantly boost employee morale. As many as 24% of employees say that their most memorable recognition experiences were directly from the CEO.
Not just this, receiving praise from a leader also enhances an employee’s motivation to go step ahead and aspire for greater accomplishments. Leaders who understand this and offer recognition contribute immensely to build a positive company culture.
8. Daily Recognition
A very simple and effective rewards and recognition idea is everyday recognition. Giving subtle yet meaningful comments or messages that appreciate and acknowledge each employee’s contributions are the easiest type of rewards and recognition for employees.
Concluding meetings with a thank-you to all participants or sending messages expressing gratitude for completed tasks shows understanding and value for efforts. Incorporating positive comments or messages during collaboration and feedback sets the ground for an atmosphere of encouragement and constructive input. These brief expressions of gratitude or recognition on a daily basis for good performance are a way of consistently motivating employees.
9. Recognition on Social Media
Publicly acknowledging employees by giving them a shout-out on company social media pages is an uncomplicated yet effective way of rewards and recognition. Whether on Twitter, LinkedIn, Facebook, Instagram or any other social media platform where the company is present, sharing a shout-out encourages clients and colleagues to contribute positive comments.
This not only appreciates employees but also humanizes the company for customers and social media followers, creating a more personal and positive image.
Now that you are familiar with various methods of rewards and recognition for your employees, you can begin experimenting with them to determine which types will have the most substantial impact on your company culture.
Alternately, you can also reach out to Akrivia HCM. We have a comprehensive Rewards and Recognition that helps celebrate and recognize employee contributions at all stages to build a stronger, cohesive team.
Learn More: https://akriviahcm.com/rewards-recognition