David is employed by a major hospital that prides itself as a “Best Place To Work.” At his ten-year anniversary, the employer rewarded him with the equivalent to $100 in points. This “recognition” came in the form of an email–no mention of the milestone on the company intranet, nor a recognition ceremony to celebrate David’s loyalty. At an organization where one of the values is “Our people are our greatest asset,” this recognition practice just simply doesn’t ring true.
In the dynamic landscape of today’s business world, the significance of employee recognition cannot be overstated. The days of companies getting by on service awards alone, are behind us. Employees now expect, not only peers, but leadership to recognize their performance, and reaffirm their value to the company. Businesses need to modernize employee recognition by establishing an authentic strategy that provides frequent gratification and nurtures social connections.
According to a recent Forbes article, Michelle Volberg, CEO of Giledan, stated “Gen Z is a bit of a different species, from what we’ve seen, and the biggest change and adaptation companies need to make to keep up with retaining Gen Z talent is instant gratification.”
Service awards, if not implemented correctly, can do more harm than good. According to Bersin by Deloitte, 87% of company recognition programs are focused on tenure (years of service). With that said, tenure-based rewards have little to no impact on organizational performance. Service awards are intended to reward employees for years of loyalty to the organization. There may be some sort of company-wide recognition or a mention to the team, but more times than not, they go widely unnoticed.
Shifting from service awards to spot awards can have a significant gain for the bottom line (ROI) of your organization. Spot awards allow leadership and colleagues to recognize special contributions, projects/tasks, or events as they happen. This type of reward showcases an authentic appreciation for performance.
In a world where authenticity is prized more than ever, a genuine employee recognition strategy stands as a beacon of sincerity. Authentic recognition goes beyond superficial rewards, resonating deeply with employees’ values and aspirations. Authenticity and respect also go hand in hand. According to a Gallup article, only 8% of employees who contend with insincere recognition (do not agree they get authentic recognition) can still strongly agree that they are
treated with respect at work.
When recognition aligns with an organization’s core values and purpose, employees feel a stronger sense of belonging and motivation. This connection to a higher purpose ignites their passion and drives them to excel, contributing to the overall success of the company.
One-time recognition events have their place, but the real magic lies in providing frequent gratification. Regularly acknowledging achievements, both big and small, fosters a culture of continuous improvement. When employees receive consistent recognition, they are more likely to stay engaged, knowing that their efforts are valued and their hard work is acknowledged. This engagement fuels creativity and productivity, resulting in a positive feedback loop where recognition and performance go hand in hand.
A Human Resources Executive article recently stated that employees recognized monthly are 36% more likely than those recognized quarterly to say they are engaged and productive and are 22% more likely to have high job commitment. What’s more, on average, employees recognized at least monthly are more productive and less likely to job hunt.
An effective recognition strategy not only celebrates individual accomplishments but also promotes camaraderie and collaboration. When employees are recognized in a public or team setting, it reinforces the idea that success is a collective effort. Social recognition builds bridges across departments and hierarchies, creating a united team that is aligned with the company’s goals and mission.
Recognition can come in many ways, shapes, and forms. A comprehensive employee rewards program is essential. This program should encompass a variety of recognition methods, ranging from verbal praise and personalized notes to tangible rewards and professional development opportunities. By tailoring recognition to individual preferences, companies can ensure that their employees feel genuinely valued and understood.
According to a Harvard Business Review article, employees who reported that their managers were great at recognizing them were more than 40% more engaged than those with managers who were not. In addition, they were more confident, felt better informed, offered more discretionary effort, and were less likely to quit.
A Greater Good Magazine article discussed how progress towards goals that matter to employees is a key contributor to engagement and motivation. When researchers Teresa Amabile and Steven Kramer analyzed almost 12,000 diary entries from 238 employees about their work days, they found that the most important predictor of a good work day was making progress. Setbacks can easily control the mindset of an employee and their perception of daily work, but showing recognition for “small wins” is crucial to displaying authentic appreciation for performance. This promotes positivity, collaboration, and can fuel a “progress loop” (a pattern of
progress-furthering-progress).
The link between employee happiness and company success is undeniable. Happy employees are more engaged, creative, and committed to their roles. They become brand ambassadors, radiating positivity to customers and stakeholders. A solid employee recognition strategy, backed by authentic gratification and social connection, creates a ripple effect of happiness throughout the organization. This leads to higher customer satisfaction, as employees who feel valued are more likely to provide exceptional service and foster positive customer interactions.
The importance of crafting a modern employee recognition strategy cannot be emphasized enough. By providing frequent gratification and nurturing social connection, companies can elevate employee engagement, foster a positive work environment, and ultimately drive success. In a world where expectations are higher than ever, investing in a comprehensive employee rewards program that aligns with the recognition strategy is no longer a luxury. This investment is imperative for companies that aim to thrive in the modern business landscape.
Service awards have their place and can be an instrumental part of a well-rounded rewards program. It should not be the goal of the organization to reward and recognize employees for their time and loyalty without regard to their performance. At WorkProud, we suggest increasing the frequency by which you recognize and drive behavior, celebrate milestones in the moment, and include other initiatives into your rewards program: Wellness, Employee Referrals, Career Pathing, etc. Not all recognitions have to include a monetary reward. Allowing for social recognition increases frequency and drives incremental effort.
As the modern workforce shifts from year of service awards to sophisticated recognition and engagement platforms, it’s important to keep Company values and vision in mind. Every organization has a different set of circumstances, however, the business result will always start with its people.
It’s clear that recognition has a significant impact on employee engagement and retention and should be considered as part of any talent management strategy.
WorkProud is committed to helping its clients create a unified approach to the employee experience by helping them build cultures of workplace pride. Trusted by millions of users at some of the world’s most recognized employer brands, WorkProud delivers a comprehensive approach to building company cultures that inspire people to be Proud of their Work and Proud of their Company.
Every month, we share news, knowledge, and insight into what we believe is a pretty simple proposition: If you are “proud of your work and proud of your company,” you are more engaged, more productive, and more likely to stay with your company for the long haul.
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