Employee Recognition

Importance of employee recognition in an organization

What is employee recognition?

Employee recognition is the acknowledgment of an individual or team’s behavior, effort and accomplishments that support the organization’s goals and values.

Any word or deed towards making someone feel appreciated and valued for who they are and recognized for what they do.

A range of formal and informal practices in the workplace that supports organizational values, goals, objectives and priorities through positive reinforcement of desired behaviors and performance.

Communication between management and employees which reward them for reaching specific goals or producing high-quality results in the workplace.

Recognizing or honoring employees for this level of service is meant to encourage repeat actions, through reinforcing the behavior you would like to see repeated.

Employees recognition expresses appreciation for an employee’s contribution to their organization.

Types of employee recognition

1. Formal recognition

Structured, scheduled activities or events with specific criteria, which are used to recognize employee contributions and accomplishments.

2. Informal recognition

Acknowledgment of day-to-day accomplishments in the workplace through gestures of appreciation, communication and/or feedback. This type of recognition provides the foundation for formal recognition activities.

Has a greater impact and affects an employee’s identification with an organization.

Recognition programs are most effective when they consist of both formal and informal components.

When should employers recognize their employees?

The following are the areas where employers can recognize their employees and boost up their efficiency:

  • Marvelous Multitasker

This recognition is for the employee who is capable to work on multiple fields, effectively.

  • Excellence in Humor and Entertainment

This recognition is for the employee who keeps morale high and makes people look forward to a day at the office.

  • Outside the Box Thinker

This recognition is for the employee who looks at a problem and sees a different solution.

  • Healthy Living Promoter

This is for the employees who encourages walks during lunch and morning stretches.

  • Outstanding Innovator

This is the employees who come up with new ideas and innovation.

  • Excellence in Organization

This is for the employees who know where everything is and keeps it where you can find it, saving your time and money.

  • Outstanding Memory Award

This is for the employee who always knows where to find little-used tools and files and saves your organization time.

  • The Risk Taker

This is for the employees who are fearless enough to take your team in a new direction.

  • The Asker of Good Questions

This is for the employees who seek clarity and becomes more effective.

  • The Human Handbook

This recognition is for the employee who always seems to be up on policy, guides and rules.

  • The Encouraging Word Award

This recognition is for the employee who recognizes others’ strengths and lets them know when they are doing a great job.

  • Pop Culture Pro

This recognition is for the employee that is always up to date with the latest trends and technology.

Why is employee recognition important?

  • Lets employees know that their work is valued and appreciated
  • Improve employee engagement
  • Gives employees a sense of ownership and belonging in their place of work
  • Improves morale
  • Enhances loyalty
  • Improve client service
  • Helps build a supportive work environment
  • Increases employee motivation and satisfaction
  • Improves employee retention
  • Communication component
  • Increases self-esteem and satisfaction with their job
  • Aim for quality work
  • Boost up productivity
  • Encourage working relationship
  • Foster pride in being a public servant
  • Improve overall organizational success

How should you provide recognition and rewards?

The most efficient way to provide a staff incentives scheme is via a structured employee recognition program, which is run on an online platform. This places all the information at both management and employees’ fingertips, allowing the entire business to easily engage with it. Rewards are visible to staff to provide an added incentive to work hard. Performance metrics are also visible to the senior team so that they can monitor progress and proactively recognize efforts at appropriate times. This kind of platform is straightforward and inexpensive to implement while making it easy to reward your staff, so high performance does not get overlooked.

Recognition works best when it is :

  • Being timely

To be most powerful, recognition should be provided as soon as possible after the event has taken place. The employee is feeling good about the performance delivered, and timely recognition can enhance positive feelings and also have a positive effect on their employee’s confidence and ability to do well.

  • Being specific

Be specific to employees about why the recognition is given. In that respect, recognition is one of the most powerful forms of feedback companies can provide to their employees.

  • Meaningfulness

It is important to understand what types of recognition motivate your employees. Recognition needs to be meaningful and vary by person, nationality and generation. Some are motivated by public recognition, other by private recognition, money, awards, lunch with the team, a day off, and so on.

  • Fairness, clarity and consistency

Your employees need to see that each individual who makes a similar contribution has an equal likelihood of receiving recognition for that effort. Apply a consistent approach in your recognition program, including criteria that make employees eligible for recognition. Develop guidelines and education for managers to help them to be consistent in their approach.

  • Relevant

The employees should be praised proportional to their accomplishment. The company should make sure that no employee is given more or less in comparison to the work delivered by them. Every employee should be recognized according to their accomplished task.

Benefits of employee recognition

Employees respond to appreciation at work, especially when it’s expressed through recognition of their efforts because it confirms their work is valued. A simple thank you goes a long way and will not only make your employees feel good but will actually benefit your business in the process. Here’s how:

1. Productivity

It’s well-known that engaged employees are significantly more productive, working efficiently and proactively in order to do a good job. If efforts are likely to be praised and rewarded, then it makes sense that a member of staff will work harder to receive such employee recognition

2. Job satisfaction

Recognising an employee’s efforts demonstrates that the job they are doing is valuable to the business. It sends the message that their hard work is worth rewarding and therefore must be important. This, in turn, makes the individual feel that they are making a difference.

3. Employee happiness

A happy and fulfilled employee can be motivated to perform better because of the positive feeling they have towards the company. If an employer treats its employee with respect and gratitude, then those employees will want to do a good job in return. This positivity can also be felt across the business, creating a happy working environment that people will want to be a part of.

4. Retention

A high staff turnover leads to poor morale that can make others want to look elsewhere. The time required to find and train new employee affects utilization and the fiscal costs are high, so retaining staff has to be a priority. The provision of rewards gives employees a tangible reason to stay.

5. Loyalty

If your employees are engaged with your business, they will be able to promote and sell your brand far better than someone who does not believe in or cares about it. Rewarding hard work generates loyalty and helps your team to feel an emotional bond with your organization.

6. Team culture

Rewards that incorporate peer-to-peer recommendations are great for team spirit, as they encourage employees to see the positive attributes in one another. Teams are well-placed to do this, as they work alongside each other every day. Plus, allowing colleagues to nominate one another for rewards is empowering, as it demonstrates that they value each other’s opinion.

Ways to Reward Employees

  • Create a simple “ABCD” card that is given when someone goes “Above the Call of Duty”.
  • Write about them in a company-wide email.
  • Give a long-lunch, extra break, or comp time.
  • Honor them at the start of the next staff meeting (recognize someone at the start of every staff meeting).
  • Post a “thank you” note on the notice board with their name on it.
  • Gift them flowers, a book, or another small gift.
  • Invite them to a one-on-one lunch.
  • Give them a card with movie tickets inside.
  • Have the entire team sign a framed photo or certificate of appreciation.
  • Send a thank you note or gift basket to their spouse.
  • Feature them in the company newsletter.
  • Let them dress casually for a day.

Employee recognition is not just a nice thing to do for employees. Employee recognition is a communication tool that reinforces and rewards the most important outcomes employees create for company’s business.
On recognizing employees, it will provide a great place to work for them and they will be willing to be a part of an organization.

If you are also looking for how to recognize the employees in your company, then do check our HR software.

factoHR is one such HR software which provides you the data to recognize the employees on various tasks such as punctual reporting, regular attendance, work performance, KPI and KRA and appreciates employees hard work and dedication.

To know more about factoHR – HR & Payroll software, please contact +91 782 000 3100 or visit www.factohr.com

Niraj Karelia

Niraj Karelia is the CTO at Version Systems Pvt Ltd and responsible for the management of design, development, implementation, and support of information systems for clients. He is responsible for application development, maintenance, testing, and infrastructure management services worldwide.