Every single person who works in your organisation, be it the department head or the office clerk, wants to be recognised and appreciated for their efforts. So this means that you should have a proper employee recognition and reward system in place through which you can keep your staff more motivated and engaged.
According to a study, 93% of your employees want to be recognised at least once a quarter. Another survey shows that 72% people say that recognition affects employee engagement. Considering these stats, it becomes even more important for you to have a proper employee reward and recognition system in place.
What are common recognition types?
You should motivate your employees every day, not just periodically. Some words of praise and some words of encouragement go a long way in engaging your employees. The workplace environment also becomes positive, and the whole team benefits.
Informal recognition is appreciation through gestures like a pat on the back, or positive feedback in front of the entire team.
Formal recognition is given through rewards when your employees make a notable contribution or achievement.
Which areas should be addressed?
An employee reward and recognition system should address four key areas: recognition, appreciation, benefits and compensation. But most companies focus on only some of these elements, and the aspects which they do address are not aligned with their other strategies.
Your reward and recognition system would work when it appreciates employees for their performance as well as their behaviour. Recognising performance is fairly easy; there is a direct link between the goals of your employees and the results they achieve. However, rewarding behaviour is more challenging. Ask yourself what types of behaviour are worth being recognised. For instance, you could appreciate your employees for coming early or staying back late to finish off an important project. You could also appreciate them for coming up with an innovative idea.
What are the benefits of an employee engagement program?
Higher employee engagement levels
Regularly rewarding your employees keeps them engaged and inspires them to deliver greater performance levels, which contribute to increased productivity.
Improved Business Results
An improved performance from your team directly includes you company’s bottom line. So this means that you achieve better results.
Increased Loyalty and Retention
If your employees feel recognised, they are more likely to be loyal and stay with you for longer.
How can effectiveness of an employee recognition system be ensured?
An employee recognition program should be a priority for every business. Here is what you can do to ascertain that your program is effective.
- Define and plan the program clearly.
- Develop the program such that it opens up communication channels
- Give your employees the rewards which they want. For some, this would be a bonus, and for others, it may be greater flexibility or some days off.
- Measure performance quantitatively, and then reward when certain set thresholds are met.
- Have a program that rewards your employees formally and informally.
- Ensure that legal specifications and policies are being complied to.
Katie is a finance specialist with one of the biggest firms in London. From savings to investments, there’s nothing she can’t advise on and she’s here to help spread the word and help you on your way to financial freedom.