Employee recognition needs to be a formal process

by on May 11, 2009 · 1 Comment POSTED IN: HR Info Center

Employee recognition programs need to be clear and defined to get results

Take a blank piece of paper and write down three major headings on the paper. First one is corporate recognition. Second one is department level staff recognition and rewards and the third is employee recognition as a supervisory first line, you know, management level.

Take a minute, I’d like you to write down all the things you do in each of those levels, formal programs you have in place.

I’m going to bet some people are struggling. Either that or it was real easy because you only have one or two things in each area.

I’m going to suggest that each of those levels, the corporate level, the department level and at the individual, manager, supervisory level, we ought to have at least a half a dozen things that we’re able to do for employee recognition.

If you don’t have a half a dozen in each category, probably time to go back and revisit your program for non-monetary rewards and employee recognition recognition.

Employee recognition programs are a major competitive advantage
Are your rewards and recognition programs, non-monetary rewards and recognition, effective in recruiting or its retention tools? When you do your pitch about your company, when managers talk about why it’s such a great place to work for, how much of that pitch, that sales or marketing message is about how you recognize people, how you reward performance, how you award exceptional delivery or values. How aligned is it with what you’re trying to do in retention?

These systems don’t operate independent from one another. They have to tie and reinforce each other.

Benchmarking staff recognition and employee rewards

When was the last time, you actually benchmarked your organization by what your competitors are doing in the same field?

If you have five or six key competitors, either locally in the geographic market or even across the United States, do you know what they do in this area? Are they getting better people and being able to retain better people than you are because they have better employee recognition programs like this in place?

Usually what I find is, in any key industry or functional area or geographic zone where there’s a number of companies doing the same kind of thing, one or two companies out of that whole group will stand out as being extraordinary doing lots of the things we’re talking about and the others just kind of play at it.

Great people stay because of employee recognition
And the result is, that company that puts its best staff recognition practices in place, they get the better people. They keep the better people.

And there isn’t any amount of money that shakes them loose, because they love the experience of working in that environment.

And most candidates will give up 10, 15, 20% in hard cash compensation if they’re getting this kind of support, these kind of employee recognition programs in the companies they’re part of.

All right. Let’s transition and talk a little about later, what I call, the overriding principles of a good non-monetary rewards and employee recognition and then we’re going to get into the specifics of each of those different levels.

1 Comment on This Post

  1. May 12, 2009 - 2:08 pm

    Excellent article. We’ve found that best practice is formalized recognition through a STRATEGIC recognition program. What do I mean by that? Strategic recognition is based on your company’s values and objectives; encourages frequent, timely, meaningful and relevant recognition actions; and reports on activities in a way that matters to executives, line managers and employees. When done strategically, recognition can fundamentally change the culture of an organization into one of appreciation in which all employees are focused on delivering against the company’s objectives.

    I write more on the link between retention, employee engagement and recognition here: http://globoforce.blogspot.com/2009/03/link-between-retention-employee.html

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