How to Create Effective Employee Recognition Programs

Employees are the backbone of a company. Without manpower, the goals set by the organization will not be realized, and the mission and vision will just be mere ideas.

According to a recent survey, 44% of over a thousand US employees experienced burnout at work, 45% are emotionally drained, and only 50% often feel a sense of belonging. This is why formulating ways to maintain the dedication and well-being of employees is essential. One of these ways is implementing recognition programs for employees.

What is an employee recognition program?

An employee recognition program is a system where employees are appreciated and acknowledged for their exemplary actions and contributions to the company. The purpose of this system is to give credits to workers so they would feel valued in the workplace. In turn, they would feel more motivated and uplifted to do an effective job.

Tools like Real-time Job Posting Salary Data will help you provide value to your employees through good talent management and compensation packages. Using real-time insights from the job market allows you to align your employee offers with accurate data and make competitive pay to deliver employee appreciation.

Why is employee recognition important?

The importance of a recognition system for employees is deeply rooted in the fact that the workers are human beings, not machines. To give them motivation at work, they need to have a healthy validation, so their performance doesn’t go unnoticed.

• Recognition helps employee engagement and productivity

  Research suggests that increasing employee recognition has positive feedback on their productivity by 40%. In addition, workers who are recognized monthly, instead of quarterly, are more likely to be more engaged and productive by 36% and more likely to be committed to their work by 26%.

• Recognition solidifies company culture

  Employee appreciation gives the impression that the organization is creating a positive environment and cultivating to boost employee morale and a sense of belongingness. When meaningful recognition becomes a regular thing in teams, the chances of having a strong community increase.

• Recognition improves employee retention

  Acknowledging the efforts and achievements of employees has led to a decline in turnover rates. People who received well put recognition are less likely to leave their job by 45% and less likely to actively look for other opportunities by 65%, compared to employees with lower-quality appreciation. This suggests that employee recognition programs increase job satisfaction.

  Employee recognition is also about managing great talents. If you’re looking for a tool that will help you with talent strategies and compensation management, you can use Real-time Job Posting Salary Data and gain insights on real-time market trends.

Types of employee recognition program

There are various ways to recognize employees. They are either tangible or nontangible. There’s no fixed box in giving appreciation to your people, but here are some types of employee recognition programs you can adopt to your company:

1. Formal recognition. Deemed as the conventional type, formal recognition is structured and planned. The recognition usually comes from higher positions, like managers and leaders. Examples of formal recognition include bonus pay, certificates, good performance reviews, and promotions.

2. Informal recognition. Unlike the formal type, this recognition is not structurally organized. It is given randomly by either managers or peers. Informal recognition can be buying food for the team for a job well done or receiving a thank you note from the leaders.

3. Social recognition. This type utilizes the public view, like posting on social media or organizing a meeting to recognize an employee. One of the most impactful ways of employee recognition, more employees think that a company has a strong recognition culture when it is done publicly because it gives awareness and pulls the team in.

4. Peer-to-peer recognition. Peer-to-peer recognition happens when workers on the same position level appreciate each other for their contributions. This helps with employee engagement. Examples include nominating peers as employee of the month, vouching for coworker’s skills on LinkedIn, or points-based recognition programs.

How to create an employee recognition program

Employee recognition programs must be tailored to the unique needs and conditions of the company. There might be a lot of options to choose from but coming up with one has to be personalized and innovative. It must also be engaging and fundamentally support the welfare of the employees.

Here are 5 steps on how to make a successful employee recognition strategy:

1. Step 1: Think of your culture and objectives

   Determine the atmosphere of the workplace, stay true to the core of the company, and find areas where recognition must be in place. You can use these guide questions:

   • Why is there a need to have an employee recognition program in your company?

   • What certain aspects of your company do you want to improve by implementing an employee recognition program?

   • What types of recognition programs best fit your company and how will they affect the organization’s culture and objectives?

2. Step 2: Ask the employees

   In every program implementation of the company, always consult the employees first, especially if the program is about them. Reach out to their concerns, suggestions, and requests. Their feedback and satisfaction are the most important part. Ask them these:

   • What do you want to be included in the program?

   • What types of awards or employee recognition do you want?

   • What are parts of the workforce that need to be recognized more?

3. Step 3: Allocate the budget

   After laying out the company values, objectives, and employee inputs, it is now time to plan the financial aspect of the program.

   One way to anticipate the costs of employee recognition programs is to gather real-time data on compensation packages that align with the latest market trends. With the use of the intelligence from Real-time Job Posting Salary Data Solution, you can make strategic compensation planning based on immediate market conditions.

4. Step 4: Outline program and communicate

   Cumulate all the important details and produce a comprehensive recognition program for employees. Make sure to outline the conditions, use an engaging format, and let your employees know that their recognition is as important as their contributions. The program must be:

   • Intentional. It is committed to the company culture, objectives, and employee fulfillment.

   • Inclusive. It gives equal opportunities for all regardless of position, gender, race, and other biases.

   • Frequent. It is not a one-time thing. It must become a habit and eventually, a culture.

5. Step 5: Track progress and be consistent

   The program does not end at the implementation. You must keep tabs on progress by gathering employee satisfaction surveys, constructive feedback, and areas of improvements.

   Keep on finding ways to make them feel valued—not only when they achieve success, but also when they’re doing great day-to-day work. By staying consistent in appreciating employees, you are giving accountability and utmost respect to their dedication and service.

Real-life examples of successful employee recognition programs

A successful recognition program for employees is not only a concept. It has been implemented by a lot of companies through the years, and they have their distinct ways of doing it.

Here are some real-life examples:

1. CIBC. Using employee recognition software, this company has eCards to recognize the day-to-day great work of employees, as well as an automated nomination process to acknowledge accomplishments through Purpose Awards.

   Also, to share real-time appreciation to team members, there’s an internal social wall where employees can add their recognition for coworkers.

2. BlueScope. This company has BlueScope-branded online portal with appreciation messages from its CEO and General Manager of People. They also give their Australia-based employees an opportunity to select five gift cards from leading retail and lifestyle options.

3. Southwest Airlines. Their employee recognition platform has no-expiration points and can be exchanged for travel incentives, fun merchandise, gift cards, and debit cards.

   Recognition of employees is also done through team meetings and gatherings. Moreover, respectful and kind employees who consistently work hard and exceed expectations are nominated by their peers for a chance to be awarded a President’s Award.

4. HPE. The enterprise celebrates their worldwide Team Member Appreciation Day annually to recognize and thank their employees for their accomplishments and contributions. This includes online activities for their remote employees.

   Some highlights are personal experiences where executives greet arriving employees, raffles, recognition opportunities, and photo booths. Employees also received two flowers—one for themselves and one for other team members they are grateful for.

5. Cisco. They believe that recognition programs for employees retain talent and are an initial investment with a future payoff. Through their platform, employees can give rewards to each other, ranging from $25-$250. Employees have used this for all-expenses-paid family trips, international travel, and charities.

At the end of the day, the most radical way of recognizing the efforts and service of employees is to provide them with compensation packages that are competitive with the global market.

If you want real-time data to give your employees competitive pay based on salary trends, use the Real-time Job Posting Salary Data tool and start your company’s successful employee recognition program now.