Everything You Need to Know
Today’s People & Culture function rapidly evolves and has the potential to enable transformation. Employees are Human Capital and play a key role in the success of any company. Focusing on employee engagement will lead to more productivity resulting in more revenue and earnings. The employee rewards and recognition programme serves many purposes and provide multiple benefits. How do you best reward and recognise employees for their efforts in this disruptive time?
Difference between Rewards and Recognition
|Rewards are tangible / transactional||Recognition is intangible / relational|
|Rewards are tied to goals and accomplishments||Recognition is personal praise or gratitude, encouraging more of the same behaviour. Recognition can happen frequently and in the moment.|
|Rewards are monetary and non-monetary||Recognition is non-monetary|
|Rewards are given top-down||Recognition is given top-down and peer-to-peer|
Value of recognition
Recognition is the strongest predictor of disengagement and turnover intentions of employees. It is shown that when employees are more satisfied about their relationship with their manager, colleagues, and feeling supported, respected and recognised, they will have less desire to look for another job. Recognition and appreciation demonstrate empathy for the employees. A reward / financial incentive often fails to motivate employees in the long run.
Structured rewards and recognition programmes can provide the acknowledgement that many employees are craving. It is a way to enhance the visibility of the employee, for them to be in the spotlight, so that everyone sees the contribution.
However, sharing the recognition in a 1-to-1 conversation between manager and employee can be just as powerful in motivating high performance in employees. In this conversation, the success in a particular area will be shared and strengths are acknowledged in detail, rather than a more generic kind of public commentary.
In addition, peer-to-peer recognition can also be a powerful motivator. When employees can recognise each other, it will strengthen the benefits of managerial recognition too. As co-workers interact more frequently with their colleagues, they can share appreciation and might reinforce this from managers.
In the end it is all about the intent of the rewards and recognition, not the programme or the platform. It will resonate with employees when it is genuine, honest, personal and specific.
Benefits of an Employee Rewards and Recognition Programme
Recognising employees serves many purposes and provides multiple benefits.
1. Boosting Team Spirit and Well-Being of Employees
An employee rewards and recognition programme boost the health and well-being of employees on both a physical and mental level. It will make employees feel good about themselves.
When recognition (also peer-to-peer recognition) is built into the programme, it heightens the team spirit and empowers employees. By praising and encouraging their efforts, it will enable them to develop.
2. Supporting Company Culture
An appreciation-based company culture builds trust and respect amongst employees. The programme will be a means to learn and praise their peers’ strengths and unique qualities. This will benefit the company’s culture for the greater good.
3. Enhancing Manager-Employee Relationships
In the end, part of the employee experience is dependent on the relationship with the manager. The rewards and recognition programme is a great tool to share appreciation and connect in a more profound way.
4. Decreasing Retention Risks
Although many factors can lead to an employee’s decision to leave the company, employee recognition and satisfaction are important elements. It is all depends on how the organisation has embedded a culture of recognition in the day-to-day work environment.
5. Fostering Employer Branding in Employee Rewards and Recognition Programme Implementation
Employer branding is key in attracting the right candidate for the job and promoting employee engagement in the long run. Recognition programmes will support in building a strong brand identity to create a lively atmosphere at work. When employees feel appreciated, they become active advocates for the company outside of the workplace.
Want to learn how a rewards and recognition platform can shape your company culture? Find more information in Knowledge & Resources.