Employee Recognition: How To Do It Right

(SALEM, Ore.) - Companies are increasingly seeking ways to retain employees amidst a competitive job market. Some resort to quick strategies such as raising salaries, offering referral bonuses, creating flexible working arrangements, and adding more office perks to make their workplace attractive.

Unfortunately, a crucial aspect seems to be left out of these efforts – genuine and consistent recognition of employees' contributions.

Studies have shown that many organizations do not necessarily prioritize it as a retention or engagement strategy, with more than 80% of leaders saying that they do not consider recognition a major strategic priority.

Additionally, about 73% of top management report a lack of employee recognition training, and almost two-thirds claim their companies allocate no budget for recognition programs.

However, it cannot be denied that embracing employee recognition can remarkably impact employee retention, job satisfaction, and overall well-being.

Organizations that incorporate employee recognition as a genuine, consistent priority show that employees report a 73% reduction in the likelihood of frequent burnout, a 56% decrease in actively seeking new job opportunities, and a 44% increase in overall satisfaction with their lives.

When workers feel valued and appreciated, they believe their work matters and their accomplishments are acknowledged equitably among their peers. As such, companies should seriously consider placing greater emphasis on acknowledging and appreciating their employee's hard work and achievements.

Keys To Running An Effective Employee Recognition Program

If you've ever worked in an office, you know how important it is to feel appreciated. You might be working 60 hours a week and doing the job of three people, but that doesn't mean anyone will notice or appreciate your efforts.

Thankfully, there are plenty of ways to show your employees that they matter—and one of the most effective ways to do so is through employee recognition programs. However, for these programs to work well and make everyone feel good about themselves, there are a few things employers need to remember:

The goal of recognition is to make employees feel valued and appreciated, so you want to ensure that you focus on their strengths.

You can do this by thanking them directly, giving them a meaningful gift, or highlighting the accomplishments on their performance review and including specific examples of how they've helped the company grow.

If you don't know where to start, asking your employees what motivates them personally is always best. You can then use this information when giving out awards or bonuses to ensure they feel appreciated as individuals.

It's one thing to recognize an employee for doing a good job; it's another thing entirely to give them a boost through genuine appreciation. Letting your employees know that you've noticed their hard work gives them confidence in themselves and their abilities.

They'll feel more motivated to continue doing excellent work because they know that what they do has value – not just for the company but also for themselves, their team members, and even their customers.

It doesn't have to be complicated: just let employees know how they helped by giving specific examples from recent projects or tasks completed at work.

The more specific you can get about how and why someone did something well will help them understand precisely how much of an impact their efforts had on other people in the organization, which can be incredibly motivating when those individuals are managers.

While rewarding employees as a sign of appreciation is beneficial, the process should be carried out thoughtfully to maintain the significance of the awards.

This is because over-awarding or giving rewards for every positive action can devalue their purpose and make the recognized employees feel less remarkable.

As such, avoid recognizing employees merely for meeting basic job expectations, as it could cause resentment among others performing at a similar level without recognition.

Awards ideally should highlight exceptional contributions to maintain their value and foster a fair, engaging work environment where hard work is genuinely recognized.

You can make this more memorable by giving out special tokens of recognition, like glass awards that they keep as souvenirs for a long time after the event.

Publicly criticizing an individual can have detrimental effects, often damaging their self-esteem and significantly hampering their receptiveness.

When people feel criticized, particularly in front of others, they may become defensive, embarrassed, or harbor resentment, which are counterproductive to achieving the desired outcome.

However, constructive criticism is sometimes necessary for growth and development, so it’s also crucial to provide this feedback appropriately by adopting a more compassionate, tactful approach by addressing the issues privately.

Conversely, if an employee has exhibited exemplary work, it could be highly beneficial to acknowledge his efforts publicly because public praise serves as a powerful morale booster, reaffirming the value of their contributions and inspiring them to maintain their high standards.

This cultivates a positive work environment and motivates others to perform equally well.

Common Mistakes With Employee Recognition Programs

Employee recognition is integral to managing people well, but it only helps you achieve your objectives if you plan and focus on the right things.

Recognition can become a chore if it's too routine, such as weekly rewards handed out to everyone who has done something good. When this happens, people expect these rewards, and they won't mean as much anymore.

The key to effective employee recognition is to ensure it's personal and relevant so your employees feel valued and understood by their manager.

It would be best if you also thought about what message you want them to take away from this experience because it is also crucial that they are learning something new or are improving at their job.

Finally, when giving out awards or praise publicly, ensure there aren't any unintended consequences like making someone else jealous or embarrassed by how much attention one person received over another.