Employees are an integral part of any enterprise’s success, isn’t it? Appreciation of good employees plays a crucial role in praising the good employees for maintaining their good work and motivating and encouraging others to perform in the same way.
Employee Recognition is a token of appreciation or an act of kindness which an employer or the person in charge does to appreciate an employee either for their work or the length of their service. It is one of the most effective plans of a company to uplift the performance of the employees.
Let’s talk about some key takeaways of employee recognition:-
So what exactly do we exactly mean by employee recognition? There are many different ways to approach employee recognition. The approaches can majorly be classified into two types: Public and Private.
The public employee recognition approach includes some groups of other employees also like luncheon, party, award ceremony, or employee of the month award. Whereas private recognition is more on to an individual’s benefit like additional days off with pay, additional bonus or raises, access to the company’s peak amenities like clubs or resorts. Usually, companies combine both approaches in a mix of public and private recognition, but the desired outcome is the same: increasing employee motivation and engagement.
As we know, employee turnover is an expensive procedure and a challenge for the workforce management team. According to a survey from the Society for Human Resource Management (SHRM),
68% of the companies believe that employee recognition has a significant influence on employee retention.
The same survey found out that
56% of the companies accepted that employee recognition programs improved their recruitment procedure.
The turnover cost of an employee is much more than what one expects. From writing and posting a job description to paying referrals and signing bonuses, the cost of finding a new employee keeps on adding up. Secondary costs of a turnover include decreased productivity, lower morale, and almost zero institutional knowledge. Recognition is something that employees enjoy and appreciate.
According to a study by Berin & Associates,
Companies with recognition programs prove to be highly helpful in improving employee engagement and had 31% lower voluntary turnover than those with no recognition programs. This states that 66% of the workers are likely to leave their jobs if they feel unappreciated or disengaged.
According to a Harward Business review,
“ it would take two and a quarter satisfied employees to generate the same output as one inspired employee.”
The contribution of a low morale employee may suffer in almost every aspect whereas, on the other hand, a high morale employee is likely to contribute greater creativity, productivity, and results. Employee recognition increases employee engagement which also results in upliftment in their productivity.
How do we show employee recognition? Well, it depends on the company’s state of affairs and what kind of recognition an employer is planning to share. Employee recognition programs must not leave the appreciation of the deserving employees to chance. Efforts in employee recognition play an important role in retention and recruitment work. Many companies follow a policy for selecting who will be responsible for different types of recognition.
Employee recognition plays a key role in a company’s success as it leads to greater employee engagement, better employee morale, improved employee experience, greater employee retention rates, a brand boost, and more employee referrals for recruitment. It shows a positive influence over other important business models as well, like sustaining outputs, controlling expenses, and increasing profits.
But for an employee, recognition means a more positive relationship and closer ties with the company. It certifies the employees that the company values and appreciates their extra efforts and dedication towards the workplace.
While designing an employee recognition program, start with a strategy by planning out the goals of the program, how will it affect your company, the challenges and opportunities for your company. Here is a list of benefits that can help you while designing your plan.
Are you confused as to how many types of employee recognition are there? There are multiple types of employee recognition that have their own pros and cons. What works out for a company may not work the same for the other. So, while designing an employee recognition program for your company, be very precise to your company’s needs and goals instead of copying someone else’s plan.
The most important point while planning employee recognition is that every employee must have an equal opportunity to achieve recognition regardless of their experience, responsibility level, age, and salary. We have listed a few types of recognition that can be taken into consideration while designing your program.
As mentioned earlier, the best practices of employee recognition may differ according to a company’s goals and overall value. Here are some of the best practices that you can introduce or heal to create a new recognition for your company:
There are multiple ways one can appreciate their employees for their efforts and dedication. This decision may depend on the company’s priority skill sets and requirements. Here are some of the examples that can help you to get started.
Now you know how to design a recognition program that suits the best for your company, but the only doubt remaining is: How do you recognise an employee? An employee can be recognised by various types of awards. The choice of awards depends upon the company’s budget, number of employees to be recognised, the glory level of recognition event, and most importantly, employee’s efforts. Here are a few examples of awards and employee recognition to consider.
Your employee recognition programs must be an integral part of your talent management strategy. If designed skillfully, it can be very beneficial for the company. It confirms to improve the recruitment and retention as well as employee satisfaction and engagement. HCM software can assist you in preparing your strategies and tactics moreover, play a vital role in the management of your company’s progression.
From creating progress reports for an individual employee to registering any complaint against a coworker, HCM is an extremely useful tool for employee recognition and company administration. Here are some steps that you can follow to design an effective employee recognition program
In the beginning, make sure that the HR team, managers, individual employees, and other staff members are familiar with the usage of the HCM software and its built-in resources. This will be very useful in the steps ahead.
Employee recognition programs are an integral part of your company’s performance strategy. Therefore, it needs to be drafted carefully.
Different types of recognition are supposed to be set very precisely with the company’s goals, requirements, and values.
Choose the metrics that are in favour of your company’s future goals. Measure your experience metrics and progress after launching your employee recognition program. You will get to know if your strategies need to be changed.
By this step, make sure that every person in the company is aware of the employee recognition program and the way it works.
To make sure that the recognitions are fairly distributed, unbiased, and on a timely basis, keep someone reliable in charge of the program at large as well as in individual departments and other areas.
Frequently asking for anonymous feedback from the employees can help in understanding the true outcomes of the programs and to see if employee recognitions are perceived.
Employee recognition programs have proved to be a very effective tool in overall talent management strategies. It can help you to find the best employees without disturbing their work environment as well as help them to get more engaged and satisfied with the work culture. Recognition can be anything from a simple gift card to formal recognitions and cash bonuses. These tokens of appreciation can boost employees’ self-esteem and assist in achieving the company’s targets and strengthen its value.
HCM software is a powerful tool that can aid in the process of tracking an individual’s progress and its management. By recognition employees on the basis of their dedication, you develop the cultural values of your company which is the most crucial characteristic of employee management.