Recognition is one of those areas of reward that we all think is quite easy to do. Put in place a formal company scheme, give it a cheesy name and Bob’s your uncle – we have recognition! The reality is that while formal schemes do work, and I have seen them work very well, my experience is that formal company recognition schemes are the icing on the cake. Outside of pay and bonus awards, it’s at the individual and team level where the greatest impact of non-financial recognition can be made on a daily basis.
Employees have clear ideas about what they want and expect from employers when it comes to recognition.
One study by OC Tanner highlighted that one of the key drivers for great work is being recognised. Unfortunately, many people still don’t feel fully recognised for the work they do – according to a Benefex study, only one in four people feel recognised to a great extent by their line manager (25%) or senior leadership team (24%). Employees also suggested that the most meaningful recognition comes from their clients and customers, rather than internal colleagues or managers.
So why do we find it so hard to give recognition to our colleagues and employees and why should we care? For some people, it is seen as nice to do and not important – not everyone realises the power recognition can have and sees it as fluffy or a waste of time. Others think they do it already – for example, many managers think they already ‘do recognition’ because they’ve taken their team out for lunch at Christmas. Yes, that is an example of recognition but it's not a one-time thing that happens once a year.
However, it’s been proven that recognition can positively impact retention, attraction, morale and productivity. According to Gallup, the #1 reason most people leave their jobs is a lack of recognition, and yet there is evidence that organisations with recognition programs that were highly effective at improving employee engagement, had 31% lower voluntary turnover than those with ineffective recognition programs. As it stands, 66% of workers are likely to leave their job if they feel unappreciated. (Bersin & Associates)
Studies have also shown that recognition can significantly improve morale and engagement
A Reward Gateway study highlighted that 70% of employees say that motivation and morale would improve 'massively' with managers saying ‘thank you’ more.
It has also been shown that organisations that put a heavy emphasis on praising and recognising employee achievements, see engagement levels increase by nearly 60%. When companies spend 1% or more of payroll on recognition, 85% notice a positive impact on engagement.
So with all that evidence, it’s a no brainer! The reality is however, getting recognition right takes a bit of effort.
Recognition activities in any organisation should be integrated at different levels. At an individual level, the most powerful recognition is readily available. When conducting a series of workshops with a high street retailer, I asked the question, ‘what could your manager do to recognise you?‘. The most frequent response was a simple ‘thank you’. Some people are naturally comfortable at doing this and will regularly give praise or show their appreciation with an email, treats or a bunch of flowers. However sometimes people need help and inspiration in recognising other’s efforts. Some creative low-cost examples I have seen and used include:
- Recognition scratch cards
- Leaving work an hour early
- Taking an extra-long lunch break, etc,
- Thank you cards – provides an opportunity for you to write a thank you message
- Handmade coupons – inviting the recipient to coffee or to leave work early
- Invitations – invite someone to a senior team meeting or company event that they wouldn’t normally attend
- An email/letter from the CEO – recognising the individual personally
Recognition at a team level shouldn’t be any different, just on a slightly larger scale! For example, taking the time to have lunch together or buying ice creams on a hot day.
It is important to appreciate that team recognition should be wholly inclusive and sometimes requires some additional thought. A workshop with a property company recently highlighted the example of an email sent across the business congratulating the commercial team on a significant deal. However, they didn’t acknowledge the legal team supporting the deal and making sure it took place on time.
Company-wide recognition is typically a more formal approach, allowing anyone in the organisation to be recognised. This can be through managerial or peer nomination and will generally impact a small number of individuals in the company. For the recognised individuals, winning an award on a company basis can be a very powerful experience. It can be made even more powerful, by extending the recognition beyond the individual. For example, for one financial services retailer, when an individual wins a company award, the team is sent a box of chocolates. For the branch, one person’s recognition becomes a very motivational and proud occasion that all share in.
So, how do you find out what will work best for your organisation? The answer is, to ask your employees. Focus groups are a really useful medium to get an understanding from your employees about what it is they truly value. By engaging with your staff, you are not only more likely to devise something meaningful but also something that they buy into.
Some useful points to cover are:
- Test their understanding of what recognition activities currently take place / they are aware of
- Understand which ones they value the most / least and why
- Ask them if they were to be recognised, what would they want it to look like?
- Find out their experiences of recognition – in your company or elsewhere. What happened and how did it make them feel?
Outcomes from focus groups that I have run typically highlight that:
- Local level recognition (i.e individual and team) is typically more meaningful
- Manager’s welcome more help in how to recognise their staff
- Established schemes and activities are often poorly communicated
Bottom-up insight is very useful, but sometimes we also have to remind our leadership to lead by example. Working with a client, we asked the senior leadership team to recall a time they felt recognised by someone or when they last recognised someone, and what happened. Sharing those stories reminded them about the power of a simple ‘thank you’.
When we all have busy lives, recognising and appreciating the efforts of others can easily get forgotten. So take advantage of the reminder of ‘employee appreciation day’ to acknowledge the work or support of others, but remember that while building a recognition culture will take some time and effort to get right, it starts with a simple ‘thank you’.
Creative recognition which inspires and engages your employees today.
