You’re an HR administrator offering your employees the most suitable compensation, the best benefits and the most reasonable amount of time off to unwind. Sounds like a top-notch deal! It should be enough to engage, retain and earn the loyalty of your employees. But is it?

Your recipe for employee satisfaction seems to be missing a key ingredient — employee recognition programs. Whether you’re just introducing them into the mix or looking for ideas to amp up current employee recognition programs, you’ve landed in the right place.

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In this article, we’ll cover the following:

• What Are Employee Recognition Programs?
• Significance
• Creating an Effective Employee Recognition Program
• Employee Recognition Programs Worth Trying
• Some Out-of-the-Box Ideas
• Wrapping It Up

What Are Employee Recognition Programs?

Employee recognition programs are predetermined, employee-focused plans and policies that aim to recognize, motivate and reward high-performing employees for their efforts and achievements as part of a larger workforce management strategy.

What’s in it for your organization? The most successful employee recognition programs align with the company’s long-term vision and goals. Such programs also encourage a sense of belonging and loyalty among employees.

And if you’re a numbers person, a recent study highlights that 82% of respondents consider “recognition an important part of their happiness at work.”

Employee Recognition Programs vs. Employee Rewards

While based on the same intent to make employees feel appreciated for their contributions, employee recognition programs aren’t interchangeable with employee rewards.

Rewards are usually financial, tangible and consumed.

Recognition, by contrast, is typically intangible, non-financial and behavior-based.

Having said that, it’s helpful to remember that recognition programs have transitioned from tenure awards to fully functioning recognition programs, blurring the line that labels employee recognition programs based on their tangibility.

Significance

• An employee recognition program enables a sense of pride and happiness in employees. It improves overall job satisfaction and enhances your people’s sense of belonging and commitment to your organization.
• Long-term retention is usually a given when employees feel valued and appreciated for their contribution towards business growth. Employee recognition programs also enhance the employer’s brand value making it easier to attract top talent.
• Effective recognition programs enable a culture of self-improvement. When the program rewards and recognizes the efforts of a single employee, it also impacts the workforce and motivates them toward better performance. The workforce also tends to be more willing to hone their skills and enhance their competency according to changing business needs.
• A recognition program instills a sense of purpose among workers and helps them better understand the impact of their contributions. It also helps eliminate any doubts employees have about their job roles.

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Creating an Effective Program

Now that the case for employee recognition programs is clear, you’re probably considering implementing one (or more) in your organization. Here’s a framework of how you can go about creating an effective employee recognition program for your business:

Define Objectives

Why do you want to implement an employee recognition program in your organization? Is it to increase employee engagement? Or to reduce employee turnover? Or you’re building a culture of recognition?

It’s good to have some clarity before diving headfirst into designing the program.

Include Best Practices for Recognition

Some recognition best practices include:

• Unexpectedness
• Personal touch
• Tangibility
• Promptness
• Consistency
• Visibility
• Peer-to-Peer
• Values-based

Allocate Budget

Some budgetary factors to consider:

• Cost of rewards
• Administrative costs
• Software costs
• Discounts or special deals with vendors

Define Clear Parameters and Criteria

At this stage, you define the program parameters and criteria:

• What would your employees prefer — recognition or rewards?
• What should the frequency of the plan be?
• How many employees will be involved?
• What are the trigger criteria for the plan?

Include Managers

Get buy-in from your most influential managers before the rollout. Assess the importance of frequent feedback and discuss how you plan to create an effective program.

Increase Awareness

Once everything’s in order, it’s time to spread the word on Slack, Teams and internal newsletters. Be sure to clearly communicate expectations for the program so everyone knows what’s involved and how it will impact them.

Make It Accessible

The keyword is “simplicity” — the program should become a regular part of the work environment. Train staff to praise and use a simple process that’s easy to follow and remember.

All that’s left to do is roll out the program for all your employees. However, that’s not the end of the road. Like most programs, employee recognition programs also benefit from feedback and improvements to remain beneficial in the long run.

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Top Examples

Now that we’ve laid the groundwork, let’s look at some examples of employee recognition programs to get your creative juices flowing.

Special Days Celebration

Go the extra mile to make employees feel special on their birthdays, wedding anniversaries, job anniversaries and other important dates. Granting surprise time off, sending a gift like cake or flowers, or planning a team get-together are some options.

Peer-to-Peer Appreciation

Peer-to-peer recognition can be minimalistic, like shout-outs in a Slack communication channel or during meetings. Or it can be large-scale, like company-wide awards. This form of recognition encourages camaraderie and promotes healthy peer relationships.

Monthly Newsletters With Employee Success Stories

Add employee success stories to the company’s newsletters or design a newsletter that only publishes success stories for your internal stakeholders.

Shout-outs

Make congratulatory announcements for the top performers in any public setting, online or in the office. It boosts employee morale amongst peers and usually comes as a pleasant surprise for the performers.

Time With Top Management

Offers a session with the CEO, president or a board member of the employee’s choice to discuss career options, suggestions, feedback, what motivates the employee and the employee’s growth path.

Sticky Notes

A handwritten note of appreciation or a quick “Thank You” goes a long way to boost employee morale.

A Virtual Wall of Fame

Build a virtual wall of fame to appreciate your top performers and honor their achievements. It also encourages peer-to-peer recognition through the concept of likes and comments.

Website Placement

Let your external stakeholders see top performers with a dedicated section on your company website.

Some Out-of-the-Box Ideas

• A “serious fun” initiative to choose an employee to become a CEO for one day. It shows that the company encourages its employees and takes an interest in their development and growth.
• An interesting twist to the Year of Service recognition, where employees receive merchandise that they can customize with a nickname or a fun tidbit.
• A “Spontaneous Applause” is where the whole office gives a standing ovation to an employee for a job well done. It makes the recipient feel happy and appreciated. If you’re remote, you can set up a team call or applaud the employee during a regular team meeting.

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Wrapping It Up

Employee recognition programs can go a long way to engage your employees, motivate them and instill a sense of belonging.

If you’re looking to get your employee recognition program kickstarted, workforce management software can help you with performance insights.

Which employee recognition programs do you want to try? Do you have more suggestions? Let us know in the comments below.