There is absolutely no one in the world who doesn’t like recognition and reward for the hard work they do and the same holds true for your employees as well. Employee recognition is the acknowledgment of an employee’s efforts, hard work and behaviour in the workplace that have contributed to the organization’s success in some way.
It is important to both recognise and acknowledge these efforts, as well as to reward employees when their efforts or behaviour are particularly noteworthy. Here are some ways in which you can recognize the efforts of your staff:
Day-to-day recognition
It is important to motivate and encourage employees to perform well on an everyday basis and not just periodically. For example, small words of praise and encouragement serve to motivate and reward your staff for their efforts and help to maintain a positive environment in the workplace.
Informal recognition
Informal recognition includes public gestures of encouragement and appreciation. A metaphorical ‘pat on the back’ or a word of praise in front of the rest of the team can go a long way in boosting the morale of all your staff, not just the recipient.
Formal recognition
Formal recognition usually takes the form of rewards for service, contribution, and achievements. Be aware that formal recognition schemes need to be carefully thought through and set out. There may be legal or company policy issues for recognition and reward.
Employee recognition has numerous benefits for your team and for the business overall. Regular recognition, whether formal or informal:
Encourages engagement
Recognition of your employee’s efforts or hard work encourages further engagement and will lift the staff member’s overall performance as they try to consistently deliver the same level of performance.
Creates better business results
Praising or rewarding your employees at work can have a direct impact on your bottom-line and can lead to better overall results, as a consequence of better individual performances.
Increases loyalty & retains the best talent
Staff who are recognized for their efforts tend to be more loyal to the company and more committed to the work they are doing. This can help to retain valued employees.
Builds a supportive work environment
The more your employees feel encouraged and valued, the more will they be supportive to your objectives and will create a supportive work environment that benefits all your staff.
Encourages a sense of ownership
Employees who are recognised will develop a stronger sense of belonging and commitment to the business which further improves performance.
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Some guidelines for creating an effective employee recognition programme:
Given how important employee recognition and reward is for the success of your business and the impact it can have on the performance of your team, consider creating a formal recognition programme for your workplace. It is a fact that organizations that make recognition a priority are highly successful. To come up with an effective recognition programme, consider these basic guidelines:
STEP 1: Identify the Goals of Your Recognition Programme
The first step to setting up a reward programme is to come up with a long-term goal or objective. You must identify and define what you want to achieve from the programme. The objective must be appropriate and meaningful to your company and ideally help the company to achieve its goals.
Talk to your managers
Make sure you sit down with your managers/directors and list the objectives of the programme. Take their ideas and make sure there is a higher purpose and a clear vision for the programme.
Talk to employees
It is also important to talk to your employees and get their opinion on any scheme. They will have a different perspective to the managers and their input will be essential to the success of any programme.
STEP 2: Establish a Budget
Now that you have identified the goal of the recognition programme, it is time to establish a budget. Talk to the finance or accounts department and work out how much you can afford to spend on such a programme every month or year. It is possible for the programme to be run on little or no cost, however, allocating some money for cash rewards, coupons, gift cards and other rewards may be a good way to differentiate between levels of recognition and reward.
STEP 3: Create a committee
Once the programme structure has been identified, set up a committee and appoint a mix of employees and managers to handle the running of the reward programme. Keep the committee small. The committee can then be given responsibility for everything related to the programme, including the formation of formal awards; creation of new rewards every so often and interesting ways to promote the programme internally.
STEP 4: Set criteria and guidelines
Every successful and effective employee recognition and reward programme has a set of guidelines and criteria which ensure that it remains fair and unbiased. Make rules, discuss exceptional cases of recognition and have a list of criteria by which success will be recognized or rewarded.
Potential criteria for assigning a reward can include:
• Length of service;
• Excellence in performance;
• Peer-to-peer communication and association;
• Leadership qualities;
• Personal accomplishments;
• Team accomplishments;
• Milestones crossed;
• Number of points earned according to a point system;
• Attendance, punctuality, results achieved.
STEP 5: Select the rewards
Any rewards that you give to your employee don’t have to be expensive. At the end of the day, it is the appreciation and recognition of their efforts that matters the most to employees and hence the formal reward can be nominal in cost. While selecting an award or a reward, you can get as creative as you want but it should be tied closely to the goal of the programme. Some examples of possible rewards are:
- Specified prizes, sometimes it is a good idea to have a range of rewards of similar value which staff can choose from.
- Gift coupons/ cards;
- Cash rewards;
- A short holiday or hotel stay;
- A free lunch/dinner with family/friends;
- Redeemable points;
STEP 6: communicate with your employees
Once you have designed the programme, the next step for you is to tell all your employees about the idea. Think of the most appropriate method of communicating to them. Make sure the communication material or method explains the various factors on which employees will be evaluated so that they can consciously work on those areas and know that the process is unbiased and fair for all.
STEP 7: Maintain and Repeat the Recognition Programme
The key to running a successful recognition programme at your workplace is to make sure it runs continuously and to keep adding awards/ rewards that will maintain the fun element and interest among the workforce. Ask the recognition committee to consider how to change the criteria for selecting candidates and rewarding them every now and then. Only when the programme has run for a period of time will it become a part of the corporate culture.
I hope this has given you ideas for how to increase employee engagement that you can implement in your own business. If you need more help and advice providing recognition and reward for your staff why not take a look at our NoLimits Community – become a member at any level and join our community.
By Justin Charlton-Jones
Join the NoLimits Business Community
Are you a business owner looking to take your business to the next level? Join our innovative community of like-minded professionals and gain access to a wealth of valuable resources, including a community portal to chat with other business owners, ebooks, business development software, and growth events that will transform the way you do business. Best of all, these resources are completely free and will be available to you forever.
But the benefits of joining our NoLimits business community don’t stop there. By becoming part of our community, you’ll have the opportunity to connect with other business owners, share insights and ideas, and build valuable relationships that will help your business thrive. Don’t miss out on this amazing opportunity to supercharge your business and join us today!