Organizations often implement employee recognition programs to boost morale, attract and retain key personnel, increase productivity, and improve competitiveness, revenues, and profitability. It also helps to reduce stress, absenteeism, and employee turnover. Recognition is especially important when organizations grow or change, as it helps employees feel secure in their value to the company and encourages them to keep up a great job. Economic uncertainty can be a source of anxiety for employees.
They may worry that an organization's growth will slow or even reverse, leading to cutbacks. This can cause them to question their career path and look for a different position that is “safe”, or they may feel stuck doing work that they don't find rewarding. This can lead to decreased productivity or increased absenteeism, which can cause other employees to work harder and experience greater stress. Company leaders have an opportunity to help employees feel more comfortable in their current situation and more secure as they look to the future, even in difficult economic times. Recognizing the importance and value of employees with recognition or rewards can help alleviate stress and provide other intangible benefits.
Although the two words are sometimes used interchangeably, HR professionals often consider rewards and recognition to be different ways of recognizing employees. Rewards are usually financial (e.g., bonuses), while recognition is usually non-financial (e.g., certificates). Both can produce different results, so organizations must consider their own long-term goals, as well as the needs of their employees, before deciding on a rewards and recognition approach. To be meaningful, recognition must be authentic and meaningful. A certificate, recognition, or plaque that is not accompanied by a genuine thank you will ring hollow.
Employee rewards can come in many shapes and sizes, from small one-time bonuses for a job well done to significant pay increases. For employers looking to maximize the positive impact of their rewards program, thinking creatively can lead to especially productive rewards programs. During periods of economic uncertainty, it's especially important for employers to be diligent to ensure that their employees know that they are appreciated. Rewards and recognition are only one facet of an effective plan to help employees cope with economic uncertainty and other stresses. Employers should also take proactive steps to help employees reduce anxiety of all kinds, teaching them tactics to manage stress.
And of course, if an employee has identified themselves or has shown signs of serious stress, they should be referred to professional help through their EAP. Recognition and reward must be adapted to the needs, preferences and expectations of team members, as well as to the values and objectives of the organization. To ensure that they are meaningful and effective, you must align recognition and reward with the organization's values and communicate how they relate to them. In addition, it's important to be clear, specific, and timely when recognizing and rewarding team members. It is also essential to be fair, consistent and transparent when applying the recognition and reward criteria. In addition, you must be sincere, authentic, and respectful when expressing recognition and reward.
Finally, you must be flexible, creative, and diverse when choosing recognition and reward methods. By recognizing the efforts and achievements of employees, organizations create an environment in which employees feel valued and satisfied. Job satisfaction and employee happiness at work are just one of the many benefits of rewarding employees and one that shouldn't be underestimated. A sense of appreciation leads to higher levels of happiness and satisfaction in their roles and ultimately reduces turnover rates. If high performance is maintained among the same team members, this should also increase the frequency of recognition.To develop an efficient recognition program, a business owner or manager must separate this from the company's reward systems.
Improving team dynamics is another of the many benefits of employee rewards and recognition programs. The importance of employee recognition is often overlooked but many managers are unaware of this vital impact. When team members demonstrate the organization's values they show their commitment alignment and contribution to the organization's shared vision and objectives. Rewarding is the act of providing tangible or intangible benefits or incentives for behavior that aligns with the organization's values. In a recent employee recognition survey 59% of respondents found that being recognized for their achievements at work contributed most to an overall sense of belonging. By recognizing and appreciating employees organizations gain a wide range of benefits from rewarding employees including greater motivation greater job satisfaction greater productivity etc. We've gathered everything you need to know to make the right choice for your people Test configurations with our ROI calculator and get shareable resources for your customers.