Have you noticed a decline in your employees’ engagement or productivity? Many companies struggle to create a recognition and rewards program that reinforces positive behaviours and keeps employees motivated. Our article explores the current state of workplace recognition, challenges that prevent programs from succeeding, and the best practices you can take to implement a system that drives engagement and performance.
The Role of Rewards and Recognition in Today’s Workplace
Companies today are aware of the undeniable link between employee engagement and performance. Researchers found that engaged employees are not only more productive, but they also tend to stay with companies longer, reducing turnover and training costs.
Common forms of rewards and recognition include:
- Public acknowledgement during meetings
- Performance-based bonuses
- Employee of the Month awards
- Informal thank-you notes or peer recognition platforms
When employees feel appreciated and see the connection between their efforts and the company’s success, they are more likely to remain engaged. However, the absence of meaningful recognition can lead to a decline in morale, an increase in absenteeism, and higher turnover rates.
Companies That Get Recognition & Rewards Right
Two notable examples include Google and HubSpot.
| Google is known for rewarding innovation and promoting a work culture where employee contributions are regularly acknowledged. Their strategy involves a combination of financial rewards, on-site amenities, and a range of desirable perks. These include on-site gyms, medical professionals, massage therapists, and cafes where employees receive free meals. | |
| HubSpot | HubSpot’s program includes benefits like unlimited paid time off, a four-week paid sabbatical after four years of service, and monthly reimbursements for books, tuition, and fitness expenses. Employees are also offered autonomous working methods, with the option to choose between working from the office, remotely, or a hybrid model. This level of care helps HubSpot maintain a high level of engagement and retention. |
Challenges in Implementing Effective Recognition Programs
Imagine a company rolling out a recognition program that focuses heavily on individual performance. It sounds like a great idea at first, but soon, team dynamics start to suffer. Collaboration declines, and the very behaviours the company wanted to promote, such as teamwork, are left unrecognised.
This misalignment between the program and the desired behaviours is a common pitfall that disrupts organisational cohesion.
Then, there’s the issue of personalisation. One employee might thrive on public praise, while another values quiet, private acknowledgment or tangible rewards like time off. When a recognition program offers the same approach for everyone, it risks leaving many employees feeling disconnected, reducing the program’s overall impact.
Some companies believe that annual or bi-annual awards suffice, but for many employees, waiting too long for recognition can lead to feelings of being overlooked. Continuous, timely recognition is critical to keeping employees engaged in their daily tasks.
Additionally, without clear and transparent criteria for recognition, accusations of favouritism may arise. When recognition lacks fairness or connection to business goals, employees can feel undervalued, questioning the program’s purpose and reducing its overall effectiveness.
Best Practices for Creating Effective Recognition Programs
Here are 5 best practices that can help you in designing a reward and recognition program.
Align Recognition with Company Values and Desired Behaviours
An effective recognition program should reflect your company’s core values and the behaviours that drive success. If teamwork is a priority, recognise and reward collaborative efforts, not just individual accomplishments.
Personalise the Recognition Process
Some employees might value public praise in front of their peers while others may prefer a private conversation with their manager. Tangible rewards such as flexible working hours or professional development opportunities are also options to recognise achievements.
Cultivate a Culture of Continuous Recognition
Consider adopting a peer-to-peer recognition program or encourage managers to offer verbal recognition on a regular basis. Consistent acknowledgement of employee efforts will help sustain motivation and engagement throughout the year.
Implement Fair and Transparent Processes
Create clear criteria that outline what behaviours and achievements warrant recognition. Consider using tools that allow for peer recognition, such as Bonusly, Kazoo, Slack or Microsoft Teams add-ons.
Link Recognition to Business Objectives
Ensure your recognition program is tied to measurable performance outcomes that support the company’s business goals. When employees see how their contributions directly impact the company’s success, the recognition feels more meaningful and relevant.
Conclusion
Building an effective recognition and rewards program is essential for reinforcing positive behaviours and maintaining high employee engagement. By aligning your program with company values, personalising recognition, and ensuring fairness, you can create a sustainable system that boosts morale, productivity, and retention. Ready to take the next step? Assess your current recognition and rewards program or implement a new strategy to create a more engaged, motivated workforce.
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