What are employee rewards and recognition programs?

Gestures of appreciation go a long way in the workplace. A Nectar survey¹ found that 84% of employees believe that recognition impacts their motivation to succeed. Yet, many organizations miss the mark when it comes to recognizing their employees for a job well done. If you fail to praise your deserving employees, don't be surprised when they look for work elsewhere.

You can avoid this dilemma by creating a rewards and recognition program that consistently gives your employees credit where credit's due. Acknowledging their achievements makes your employees feel valued at your organization. This builds brand loyalty and creates a positive company culture.

In this article, we'll explain why rewards and recognition programs are important, what they commonly consist of, and how you can offer one at your organization.

Takeaways from this blog post:

• Employee rewards and recognition programs have a positive impact on employee morale, engagement, and retention.
• Tangible rewards for employees can include monetary rewards, non-monetary rewards, employee experiences, company events, and personalized gifts.
• Employee recognition ideas can include shout-outs, written notes, social media features, anniversary celebrations, and praise walls.

Why are employee rewards and recognition programs important?

Employers use rewards and recognition programs to commemorate employee achievements. With rewards, you celebrate your talented employees who go the extra mile by providing tangible gifts. With recognition, you celebrate an employee's outstanding performance with praise. Rather than choosing one or the other, a mix of both creates a successful rewards and recognition program that leads to higher employee engagement, satisfaction, motivation, and retention.

Survey data shows that investing in an employee rewards and recognition program pays off for your organization. Findings from the Nectar survey show that 78% of employees believe increased recognition would boost their productivity. An additional 71% would have a decreased likelihood of leaving their organization if they received more frequent recognition.

James Allsopp is the HR Manager at iNet Ventures². He said the company’s rewards and recognition program has touched every aspect of employee recruitment and retention.

“Any prospective candidate wants an organization that cares for its people, and our program is one that can be sold to potential employees,” Allsopp said. “For employees, the knowledge that their efforts will be noted and rewarded reduces the extent of turnover. The continuity helps not only in retaining institutional memory but also saves money that would otherwise have been incurred while recruiting and training new personnel.”

To sum it up, happy employees are good for your business. They stick around and stay engaged at work.

Now, let's review the wide range of options for rewards and recognition that can serve as powerful motivators for your team.

Types of rewards

If you'd like to reward your employees for achieving a certain performance goal, reaching a personal milestone, or completing a difficult project, you can thank them in several ways.

Here are some of the tangible rewards you can offer:

• Monetary incentives. You could give your employees cash rewards, one-time spot bonuses, gift cards, or annual raises. You could also give them stock options or offer profit-sharing bonuses.
• Non-monetary rewards. Instead of cash, you could offer your employees additional paid time off (PTO), flexible schedules, or paid leave for volunteering.
• Employee experiences. You can give your employees the gift of experience with complimentary tickets to local events, going all out with free vacations, or offering lunch with the CEO. Additionally, you could pay for professional development opportunities such as conferences or training programs.
• Company events. You can thank your team by getting them out of the office to have some fun. You can take your employees to a local sporting event or test their skills at an escape room. You could try group cooking classes, bike rides, or trivia nights.
• Personalized gifts. You can create a gift basket filled with some of your employee's favorite things or give them a VIP parking spot for a month. You could also hook them up with company swag like hats, laptop cases, umbrellas, and more.

Types of recognition

Employees appreciate the praise they receive for their efforts. When you want to acknowledge your employee's stellar performance, you have plenty of innovative ideas to choose from.

Here are some employee recognition ideas:

• A "thank you" meeting. Call your employee into your office so you can point out the great work they're doing.
• Shout-outs. Make it a point to brag about your employee's achievements in a company meeting, newsletter, or on your company's instant messaging platform, such as Slack.
• Jot it down. When you see an employee doing great work, send them an email or put a handwritten note on their desk to acknowledge it. Some employees prefer this form of private recognition over public praise in front of their entire team.
• Social media features. You could recognize your employee's achievements on company social media platforms with a weekly or monthly “employee spotlight.”
• Anniversary celebrations. An employee anniversary recognition program is an easy way to make your dedicated employees feel appreciated. You can decorate their desk, bring in a cake, ask your team to sign a card, or present your employee with a service award commemorating the number of years they've worked at your company.
• Praise wall. This is a fun way to share the positive difference people are making at your company. You can put sticky notes up on a wall, use a dry-erase board, or make it virtual. Encourage your employees to get involved and recognize each other for the work they do each day.

How to offer an employee rewards and recognition program

Creating a culture of recognition means rewarding employees on a regular basis. A rewards and recognition program can work with organizations of all sizes. You'll want to base yours on company values, goals, and budget.

If you're interested in developing your own employee recognition program, here are five steps to follow:

• Seek employee input. Give your employees a voice. If you want to know what your employees care about, just ask them. This can help you determine meaningful rewards and effective recognition that work best for your team.
• Define program objectives and criteria. Determine what success looks like at your organization. Ask yourself, “What is quality employee performance?” Consider what it takes for your employees to reach that standard.
• Specify your rewards and recognition. Will you use mostly monetary or non-monetary benefits? Could tickets to local events or team-building experiences work better? Remember to use a good mix of rewards and regular recognition to ensure your reward program is well-rounded.
• Tell your employees about the program. Make sure you communicate your program clearly and effectively. You can do this through in-person meetings, emails, or instant messaging platforms. You want every employee to be aware of this new opportunity and understand how it works.
• Gather employee feedback and make adjustments regularly. You'll get a combination of negative and positive feedback. If your employees have helpful suggestions, implement them into your program. Do this regularly to keep your employees happy and engaged with the program.

Conclusion

When you recognize and reward an employee for their hard work, you let them know they're an important part of your company. Creating a culture of appreciation at your organization is the key to higher employee retention, satisfaction, and engagement.

From cash bonuses and unique experiences to thank-you notes and shout-outs on social media, you can show your appreciation to your talented employees in multiple ways. With a combination of praise and prizes, you can create a successful rewards and recognition program at your company.

1. https://nectarhr.com/blog/employee-recognition-statistics
2. https://inetventures.com/