Employee Recognition Programs: What Works?

Building a formal employee recognition program can be a challenge—they innately require more structure, communication, and consistency than informal methods of employee recognition. Some companies may choose to offer awards of monetary compensation, a sales commission increase, or an “employee of the month” award.

However, many employees are simply uninterested in a monetary award. In fact, studies have shown that giving someone praise is more effective than giving them a gift.

Why is Employee Recognition Important?

People who don’t feel appreciated at work aren’t happy. Unhappy employees often choose to find new jobs. Recognition is simple to give, and it’s one of the most important things you can do as a company, or as a manager, to prevent high turnover rates and build employee loyalty.

A recent study showed that organizations with implemented recognition programs for employees had a 31% lower voluntary turnover than organizations who lacked sufficient recognition programs. Employee engagement is huge for success and productivity—and recognition is at the very top of the list of what increases engagement.

How Does a Company Build Employee Recognition?

Start by encouraging peer-to-peer recognition. In a survey from the American Psychological Association, it was discovered that only 17% of employees noted that they received recognition from their peers. Why is this? It’s easy to compliment a peer on a job well-done, especially when you likely have more face-to-face contact with your peers versus your manager. By creating a culture that values peer-to-peer recognition, you can start to build gratitude and appreciation for one another’s work.

How Do I Put Together an Employee Recognition Program?

In addition to peer-to-peer recognition, a good next step is creating a complete employee recognition program for your team. There are a few things you should keep in mind when it comes to creating and implementing a program:

Recognize frequently and in real-time

Going through the motions, i.e. recognizing a certain member at a certain meeting each month, is often not enough. It can feel forced and untrue to many employees. When you see someone doing a good job and providing quality work or results, say something. It’s simple: see something, say something. This goes for both managers and peers.

Give specific praise

To simply say, “good job,” or “thank you,” is not quite enough for many employees to feel accurately recognized. Be specific and targeted in your praise and feedback. If an employee did a great job handling a difficult client, be specific in your gratitude. It adds meaning to praise.

Encourage constant participation

In order to truly create a company culture that values each other’s work and verbalizes it frequently, encourage your teammates to speak up about what they appreciate about one another. If you decide to have a #gratitude or #goodwork Slack channel, take initiative and spread the love. Everyone will feel stronger and more confident in their work and in their team.

At the end of the day, employee recognition programs take a lot of work. They require you to be constantly aware of what your employees and teammates are doing—and be open and honest about what you see and appreciate. Remember that recognition is inherently different than rewards—and that by choosing to practice frequent and honest recognition and appreciation for one another, you’ll be well on your way to creating a company culture that’s supportive, generous, and enjoyable.

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