Driving Reward And Recognition In The Workplace

People are a vital part of any organisation; to work at their best, they need to be happy. 

The happiness of a person in the workplace includes many aspects, including career opportunities, salary/ earning potential, and reward and recognition.

We’ve previously spoken about how reward and recognition in the workplace can drive motivation, leading to higher tenure, increased well-being, and increased productivity. But how should leaders drive reward and recognition in the workplace and make it part of their culture?

Adopting comprehensive systems of recognition and appreciation to engage and retain top talent is a must to stay ahead in an ever-increasing market, and the numbers don’t lie.

• A Watson Wyatt Study of 3 million employees, as quoted in Forbes magazine. “Companies that utilised an effective employee recognition program enjoyed a 109% three-year median return to shareholders vs. a 52% return for those companies that did not.”

• According to Gallup, 65 percent of surveyed employees reported that they received no recognition for their work over the last 12 months. In the same report, 89 percent of employers feel that most employees leave their companies to earn more money. However, most workers who leave their jobs cite a lack of employee recognition as a significant concern.

When people think of rewards, they automatically think of financial rewards. These are undoubtedly important for employees. However, money alone is not enough. Intangible rewards like recognition from peers and leaders are meaningful and memorable for people, too, making them, sometimes, more significant than financial rewards.

Recognition

Occasions

Peer-to-peer appreciation

Shout outs

The little things

Rewards

Tailor-made reward program

Monetary incentives

Recognition

Recognition should not be reserved for achievements and going above and beyond. Showing an interest in people and recognising things that are important to them is also essential when wanting to show you care. Similarly, recognising people's achievements outside of work shows you take an interest in them as people.

Occasions

Saying ‘congratulations’ on birthdays and work anniversaries is not enough. Companies and leaders need to go the extra mile when recognising occasions that people may find important. Organise a card or a small present/ reward to say thank you. Personal recognition can also be extended to weddings, new homes or wedding anniversaries. 

Peer-to-peer appreciation

Create a workspace where colleagues appreciate each other. Encourage people within the business to endorse one another openly. Let people vote for people who have gone above and beyond or a monthly or weekly award. Peer-to-peer recognition is more valuable for people as they are recognised for their achievements and contributions to the team. 

Shout Outs

Congratulate top performers and those who have gone above and beyond with regular shout-outs in meetings. Unexpected shout-outs and small gestures of recognition boost morale in individuals and the overall team. Encourage shout-outs in company-wide and team-wide meetings to make them part of your culture.

The little things

Small gestures go a long way, whether it’s an email or a handwritten note. Send an email to a person to thank them for their help, or you think they’re doing a great job, or leave them a post-it note to say thank you. 

Rewards

Unlike recognition, rewards should have a monetary value attached to them. Rewards programmes need to be crafted by HR teams to ensure they are positive and reinforce motivation within teams. When considering rewards programs, it's important to share that there should be fairness and benchmarks for receiving rewards, whether this is signing new clients, getting a big deal, or going above and beyond. Rewards should not be competitive and should be given to those who warrant them. 

Here is a list of rewards programs aimed at individual and team performance:

Tailor-made reward program

People are different; therefore, their values of other rewards differ. Many organisations use standard rewards to appreciate employees; however, with more emphasis on tailored experiences for clients, why should you not treat your employees the same?

More companies are implementing tailor-made programs that reward people based on their hobbies—for example, football shoes for a football enthusiast or a camera case for a photographer. 

Monetary Incentives

Monetary incentives have been proven to boost employee engagement. 

One study by the Incentive Research Foundation found that when an incentive program is built correctly, it can increase performance by up to 44%.

A person will not feel motivated to continue positively impacting a company’s revenue if they are not rewarded for their efforts. This could be in the form of an annual bonus or a portion of the benefit being distributed. Incentive programs need to be designed so that employees feel motivated to achieve more and drive organisational goals.

Other incentive ideas include

Staycations

Ticketed events

Lunch/ dinner options

Personalised gifts

Gift cards

Key takeaways

Companies that want highly motivated and performing teams need to drive an organisational culture of reward and recognition.