Why timely Employee Recognition is as important as the program itself?

Why timely Employee Recognition is as important as the program itself?

The fact, that the only thing constant in a business environment is change, is well acknowledged and accepted. While some changes might not actually prove beneficial for business growth, most others are aimed at driving business success and profitability. The one change that has proven extremely beneficial for business organizations is the growing focus on ensuring employee engagement and happiness. Only a few years back, these aspects were handled by the HR department of an organization and were considered not significant enough to be an integral part of the key business strategy. However, today organizations have become well aware of the fact that a higher level of employee engagement is essential for enhancing productivity, innovation, and business growth. They also understand the significance of employee rewards and recognition for enhancing engagement.

How Recognition drives engagement

Employee recognition can help companies get amazing results not only in specific work areas but across the entire organization. In fact, industry experts are of the opinion that recognition is the most important tool that can be leveraged by managers to drive engagement and performance. This is because recognizing the efforts and achievements of employees is known to enhance their overall satisfaction levels of working with the organization. It also makes them feel valued and makes them feel inclusive in organizational growth. Most importantly, employee recognition helps in opening up avenues of communication between the employees and the management, which further improves engagement and performance.

Different Forms of Recognition

Employee recognition programs and strategies vary from one organization to another and are based on the unique needs of a company as well as individual employee preferences. Some easy ways in which organizations can recognize their employees are given below:

Written Praise

Short hand-written notes of appreciation or even emails appreciating the efforts and contribution of employees are common methods of employee recognition. These notes and emails act as tangible proof of the achievements of an employee and bring a personal touch to the whole concept of employee appreciation. Most importantly, they offer great flexibility in terms of appreciation shown to an employee.

Verbal Praise

Another common type of employee recognition is verbal praise, which is also the oldest method of employee appreciation. Verbal praise is almost always informal in nature and can be offered by the supervisors of the employees, their peers and even the members of top management in an ad-hoc manner. However, this does not diminish its value in any manner and proves equally effective in improving employee motivation and engagement levels.

Recognition across Corporate Social Media

Acknowledging and appreciating the efforts and achievements of employees on various social media platforms has been gaining much popularity. With most employees having an active social media presence, such recognition can go a long way in enhancing their motivation levels besides improving their overall engagement with the organization. Most importantly, being recognized on such platforms fills the employees with a sense of pride and makes them feel more committed towards their organization.

Significance of Timely Employee Recognition

There is no denying the fact that organizations are becoming increasingly aware of the importance of employee recognition. This awareness has enabled them to take the necessary steps towards developing and implementing an effective recognition system. However, they still tend to overlook the significance of its most critical aspect, namely timely recognition. In fact, appreciating the efforts and achievements of employees in a timely manner is the key to establishing a self-motivated organization culture based on a successful, impactful and meaningful recognition program. The significance of timely recognition can be understood from the below-given reasons.

Closely link recognition to the action or event being recognized

Organizations often delay recognizing the desirable actions or behaviors of their employees until an end-of-year event or quarterly team/ department meetings. This often makes the whole exercise ineffective as most employees do not feel appreciated the same way if it were to be done immediately after the achievement. By recognizing the achievements in time, organizations can encourage the entire workforce to perform the actions that have helped their colleagues to earn the appreciation of their peers and superiors.

Encourages recipients to repeat behaviors

Failure to recognize employee efforts in time results in diminishing the impact for recipients and other employees. This is especially true for entry-level employees, who might still be struggling to establish themselves in the organization. This is a loss of opportunity to encourage similar behavior; it might even cause them to become demotivated.

Employee recognition needs to be done in the right way and in good time to get the desired results in terms of improved performance and higher engagement levels, which is why organizations need to adopt a policy of more effective and spontaneous recognition.

Useful tips for setting up an effective Employee Rewards Program

Useful tips for setting up an effective Employee Rewards Program

Most business organizations today are aware of the importance of rewarding their employees to enhance their sense of satisfaction and loyalty. In addition to being a good HR practice, it helps in boosting the morale of employees and makes good business sense. However, when it comes to actually creating an effective employee rewards program, most organizations are unaware of where to begin. Hence, they often resort to throwing money at employees in the name of rewards, which is neither feasible nor effective in providing the aforementioned results. So, it becomes essential for companies to intelligently plan and implement an employee rewards program. Discussed below are some useful tips that can help organizations to develop such a program.

Learn what motivates Employees

Employee temperaments and personalities differ significantly which essentially means that the things they value and gain motivation from are also quite distinct. The good news is that despite these differences, there are still some common motivation patterns shared by the employees from the same team or division. Learning about these motivation factors can help in establishing a strong base for an efficient employee rewards program. It might be impossible for companies to individually interview every employee to learn about what motivates them. The challenge can be overcome by asking employees to fill a quick survey form having open questions for gaining elaborate details.

Set meaningful Rewards Criteria

A successful rewards program is one that is based on meaningful criteria rather than favouritism or arbitrary picking. Employee recognition should be considered as something special that can be achieved through hard work and commitment. It should not be perceived as something like an entitlement for employees who have good relationships with their managers or team leaders. Most importantly, every employee should have an equal fighting chance to be part of the program, irrespective of their level and role within the organization. This can be ensured only by clearly defining the criteria that employees would need to fulfill to be considered for the reward.

Form a review committee

Irrespective of the size of an organization, forming a committee to oversee the employee recognition program is highly advisable. The committee may consist of just a few senior and mid-level managers, to begin with. The size of the committee can be increased at a later stage if the companies feel the need for the same. The most important thing to ensure is that the members of the committee should be known for their honest and unbiased decision-making capabilities. It is also essential for companies to promote the concept that serving on the committee as a matter of privilege and pride. This in itself can prove to be a reward for the employees who get the opportunity to take up the role.

Involve Team Leaders and Line Managers

When it comes to assessing the overall performance, contribution and achievement of employees, the feedback of their team leaders matter the most. Hence it is essential for an organization to ensure the involvement of the team leaders in any rewards program to make it truly efficient and successful. Most organizations commit the common mistake of seeking advice and feedback only from the HR, while completely ignoring the opinion of team leaders. This diminishes the credibility of the rewards program as most employees feel more satisfied if they are rewarded by the people they work with on a day-to-day basis. 

Know the characteristics of a good Rewards Program

This is perhaps one of the greatest requirements for setting up a good rewards program. The most important characteristics of a good recognition program are listed below.

·        It should be timely; as any delay in rewarding and recognizing employee, efforts diminishes its value.

·        It should follow a regular frequency as it ensures enhanced employee engagement, lower turnover, and better business results.

·        It should be specific, which means that it should aim to acknowledge some particular achievement or contribution of employees.

·        It should have some tangible value so that the employees continue to feel motivated long after receiving the reward.

·        It should be value-based so that employees feel motivated to work towards a common objective.

Make the Program multifaceted and diverse

Maintaining variety in the rewards and recognition program keeps the concept fresh and exciting for long. Employees tend to feel a sense of curiosity about the rewards that they will be given and this enhances the general enthusiasm for the program. However, care should be taken that the diversity is not achieved at the cost of hurting the sensitivities of other members of the workforce as it can render the whole process ineffective and even make the employees feel demotivated.

Developing an effective employee recognition system is not as difficult as it may seem, especially if organizations were to follow the above-discussed tips to enhance the feasibility, reliability, and cost-effectiveness of the program.

 

How to Reward and Recognize Customer Service Employees?

How to Reward and Recognize Customer Service Employees?

Great customer experience is one of the key requirements for ensuring the success and growth of any business organization. In fact, it is not uncommon for individuals to shift their loyalties to an organization promising to offer better customer experience.   In order to create such an experience, it is important for companies to train and prepare their employees to be customer-centric. However, such training and preparation form only one aspect of ensuring customer satisfaction and happiness. A customer service organization be it a call center,  front-office or delivery function also needs to focus on enhancing the happiness and satisfaction level of its own employees to get the best results. Companies can no longer undermine the fact that the success of their business depends on an ongoing stream of happy customers, which in turn is determined by the happiness level of the employees.

How Employee Happiness Influences Customer Experience

A customer-centric approach does not just focus on efficient communication with customers through a call center or front office but is more about ensuring better brand experience and establishing long term relationships with them. In a customer service environment, the employees handle the responsibility of fostering such experiences and relationships. By empowering the employees and enhancing their engagement and satisfaction levels, companies can ensure a significant improvement in these experiences and relationships. It has been observed that happy employees tend to be self-motivated and work towards delivering better customer experiences. Their commitment and sense of loyalty towards the organizations is significantly enhanced and this is reflected through an increase in their efficiency.

Using Rewards and Recognition to reinforce Customer-Centricity

Just being aware of the critical role played by employees in delivering great customer experience is not enough for a business organization. Rather they need to take the necessary steps to reinforce customer-centric behavior by creating a customer-focused culture. The most important step to be taken in this direction is to integrate employee rewards into the company culture. At the same time, they need to avoid the common pitfalls that can render the reward and recognition program simply useless. In order to ensure the same, the business organization needs to ensure the following.

Focus on the Employee Behaviors that provide Desired Impact

While deciding about the most appropriate rewards and recognition options for employees, business organizations need to focus on identifying and promoting employee behaviors that ensure an enhanced customer experience. For this, they need to first determine the things that really matter to the customers through a thorough analysis of customer data, their preferences, and reviews. The information thus obtained can be then co-ordinated with the various behavioral attributes of employees to learn about the ones that provide the desired results. Having identified the most effective behavior that drives customer satisfaction, the organization should take the necessary steps towards employee motivation to promote this behavior.

Integrate Reward Systems with Customer Experience

Proper alignment of the reward system with employee incentives with respect to the customer experience they create, is essential to create a customer-centric culture. This might require slight modification in the criteria used for deciding formal rewards such as salaries, bonuses, and promotions. The awareness of the fact that being customer-centric can prove beneficial not only in terms of gaining recognition and appreciation but also for ensuring career growth can act as a great motivator. In addition, it also helps in maintaining the credibility of the reward system by ensuring that only the most deserving employees receive them.

Set up Informal Rewards to Encourage Customer Focus

Employee recognition holds greater value than monetary benefits for a large percentage of professionals working in a customer service environment.  Thus by setting up informal rewards, that can remind the employees of their achievements and glory – it tend to prove more effective than just cash rewards. The simple act of posting an image of the top-performing employees for a specific period in the workplace where it is easily visible to other employees and customers can boost the morale and efficiency of the employees quite significantly. In turn, it can create a sense of pride amongst the customers who might have interacted with these employees and strengthen their bond with the company.

Focus on ensuring Better Work-Life Balance

At the end of the day, all employees are individuals with a life outside their profession, which they cannot ignore. No amount of rewards and recognition can replace the happiness that employees gain by spending time with their family and friends. Thus by providing opportunities for a better work-life balance for their employees, companies can enhance their happiness quotient. Happy employees tend to be more attentive and sympathetic towards their customer needs and are more likely to make every effort to ensure their satisfaction and happiness.

A customer service environment can prove to be extremely stressful and exhausting for employees as it requires them to deal with people of diverse natures, opinions and patience levels. The challenge of keeping the employees working in such environments motivated and engaged can only be overcome with an effective reward and recognition program.

How to make Rewards and Recognition Programs work for Gen Z employees?

How to make Rewards and Recognition Programs work for Gen Z employees?

Most organizations have just felt the satisfaction of figuring out the needs and expectations of the millennials present within their workforce. But they hardly have time to celebrate this achievement, as an entirely new generation of employees is becoming a part of the workforce. This new generation, referred to as Generation Z, is as different from the millennials as they were from their predecessors. Consequently, organizations are once again faced with the need to modify their rewards and recognition programs to accommodate the newest members of their workforce. This can definitely prove to be extremely challenging especially within organizations where several generations of employees work together.

An Overview of Gen Z

Before learning about the reward and recognition programs that would most likely prove most motivating for the Gen Z employees, it is essential for hiring organizations to know more about these individuals. This generation of employees comprises of people born between the mid-1990s to 2000. According to a survey, Gen Z is expected to form 35% of the workforce by the year 2020. This generation has spent most, if not all, of its formative years, being exposed to on-demand and constant connectivity. As such, they expect their workplaces to offer easily accessible and convenient technology solutions. Not surprisingly, their expectations with respect to the rewards and recognition they are likely to receive from their employers are drawn along the same lines.

Rewards and Recognition Tips for Employers of Gen Z

Like their preceding generations, Gen Z employees also need to be amply recognized and rewarded for their work and contribution towards organizational growth. However, given that the members of this generation have only recently begun to be employed, the hiring organizations are yet to figure out the best way rewards and recognition programs that will ensure maximum engagement and motivation of the newest members of their workforce. In this context, the below-discussed tips can quite useful for the employers of Gen Z.

They prefer to keep it Simple

A large majority of Gen Z employees prefer rewards and recognition programs that are quite simple. They may feel more happy and content by a simple mail of appreciation from their superiors, rather than being publicly appreciated and rewarded in front of their team and peers. They are also do not like to be bestowed with heavily worded certifications or medallions, but would rather prefer something more practical and useful in lieu of a reward.

They love Tech Toys

Gen Z has been bought up in an environment where the use of technology is a part and parcel of life. This has ensured a deep-rooted love for various technology tools and toys in their minds and hearts. Hence they are almost always motivated by rewards that are technology-driven. Be it a gadget that has been recently launched in the market or an opportunity to learn a new skill or master a technology, such rewards go a long way in ensuring great employee motivation and satisfaction for this generation.

Paid Activities are always more effective

A paid family dinner or a fun outing with friends or even movie tickets and meal vouchers is something that the members of Generation Z would generally give preference to. Such rewards provide them with an opportunity to relax and unwind and also spend quality time with people who matter the most in their life. Moreover, it saves them from the stress of financial expenses which more than compensates for any loss of cash reward they might have received.

Additional Perks are preferred over Rewards

Employees of generation Z seek a more comfortable and flexible work environment. Hence they are willing to forgo any cash or kind rewards if it means getting additional perks and benefits at the workplace. The good thing is that even the perks and benefits being sought are not too unrealistic. In most cases, these include greater flexibility in work schedules, preferred work areas, free pick, and drop facilities or even an increase in the variety and frequency of serving hot or cold beverages.

Personalized Rewards tend to make a great difference

When it comes to employee recognition and rewards, the members of Gen Z workforce feel considerably motivated by personalized gifts. It makes them feel truly valued and appreciated as an individual. They are assured of the fact that their employer knows them not just as another useful asset but as a person with specific tastes, likes, and dislikes. This helps in establishing a strong bond of trust and emotional connectivity between the employees and the business organizations and ensures the creation of a committed and dedicated workforce. In most cases, the size and cost of the personalized gift do not matter much, but the employers need to ensure that it matches the position of the employee within the organization.

Keeping the above points in mind, organizations can develop suitable employee rewards and recognition programs that can be extremely satisfying and constantly motivating for the members of Generation Z workforce

HiFives Team

Role of Top Management in Driving Employee Rewards and Recognition

Role of Top Management in Driving Employee Rewards and Recognition

Every organization today is waging a war against its competitors to attract, hire and retain the best talent within their specific industry. Sadly, gaining momentary success in terms of hiring top talent does not guarantee their long term retention. Hence, business organizations need to explore new methods of motivating their employees and enhancing their sense of belonging and loyalty. In this context, employee rewards and recognition programs have come to play a vital role in encouraging the employees to stay committed towards organizational growth. However, in order to get the best results, it is essential for the top management of an organization to actively participate in employee rewards and recognition programs.

What necessitates the Involvement of the Top Management

It is a common perception that employee recognition is just another HR process that does not require the involvement of top management. However, given that the process plays a critical role in driving performance, doing it properly while also ensuring employee satisfaction, is the need of the hour. The involvement of the top management can lend greater credibility to the whole program and help in the creation of a dedicated workforce. In fact, the top management can no longer afford to be on the sidelines of employee recognition as it is directly related to the success or failure of the business. The availability of countless lucrative options for even entry-level professionals outside an organization has made it necessary for the top management executives to take up an active role of caring and people leadership.

Understanding the Role of Top Management

The time, when senior managers preferred to remain blissfully ignorant about how and when employees received rewards and recognition, has long since passed. Today, the top executives need to treat their employees as valuable assets and maintain a harmonious relationship with them. They also need to actively participate in establishing and implementing an employee recognition and rewards system and culture based on a careful analysis of company policies and procedures. They should conduct a thorough assessment of the responsibilities and risks associated with a specific job role to define the best ways of recognizing and rewarding the efforts of the employees fulfilling these roles. Simultaneously, they need to ensure the alignment of the reward system with company objectives, vision, and mission. The decision about whether the rewards should be offered in cash or kind also needs to be taken by these executives on the basis of the job profile and interests of selected employees.

How Top Management influences Employee Motivation levels

For most employees, especially those working at junior most levels within an organization, the members of the top management are nothing less than celebrities. The very fact that these top executives invest time and effort to acknowledge and appreciate the contribution of such employees towards organizational growth can prove significantly motivating. It can actually boost the efficiency and engagement of the employees by a significant margin, which can, in turn, enhance business performance and growth. Most importantly, it makes the employees feel valued and cared for and this can further help in bridging any commitment gaps that the employees might be having for the organization. The direct involvement of the top management in the rewards program assures the employees that their hard work and commitment is not going unnoticed and that they have no reason to feel insecure about their future within the organization.

What the Top Management needs to do

In addition to making the various decisions about what, why,  where and when of the reward program, the members of the top management can do the following to further enhance employee motivation levels.

Send personalized congratulatory emails

Receiving a personalized email congratulating them for their efforts and achievement form individual members of the top brass can help in keeping the employees motivated for long. The email serves as proof of the fact that their dedication and hard work was not only acknowledged and appreciated but also rewarded appropriately by people who matter the most.

Make time for a Personal Interaction

An opportunity to hold an informal interaction with the members of the top management is nothing less than a reward for most employees. It assures them of the willingness of their employers to learn more about them as an individual. Moreover, it also provides the employees with a unique opportunity to present themselves as the potential candidates capable of handling greater responsibility.

Support the Efforts of Employees aimed at Organizational Growth

One of the best ways in which top management can enhance the motivation level of employees is to support their ideas and efforts aimed at organizational growth. Even if some of these ideas seem completely bizarre, it is the responsibility of the management to give the employees at least once chance to prove themselves without being judgemental.

Top management executives can no longer keep themselves disassociated from the rewards and recognition programs within their company as it affects the overall performance and efficiency of the workforce quite significantly.

HiFives Team

Guide to Employee Recognition in a Start-up Environment

Guide to Employee Recognition in a Start-up Environment

The importance of keeping the employees motivated and engaged in any organization cannot be undermined. In start-up culture, this aspect gains even greater significance, especially in terms of employee recognition and rewards. Given that employee engagement significantly impacts the fulfillment of business objectives, appreciating and rewarding the deserving employees, ensures stronger company outcomes. While most established businesses have a formal and mechanized employee recognition system, things need to be done differently in a start-up environment to get the best results. Here, it is essential to first understand the significance of employee recognition in start-ups.

Importance of Employee Recognition in Start-up Environment

Employee recognition forms the core of employee engagement in most business organizations. It is also a well-known truth that most start-ups comprise of a small group of employees performing multiple functions simultaneously. This naturally requires the employees to stretch beyond their usual capabilities and work hours in order to propel the organization forward. Therefore, in such environments, recognizing and appreciating their efforts goes a long way establishing an emotional connect and sense of belonging of the employees with the start-up. However, as mentioned before, effective employee recognition in start-up environments cannot be carried out in a conventional manner but rather requires mindful planning and execution.

Handling Employee Recognition the Right Way

One of the key aspects of handling employee recognition in the right manner is to make it individually meaningful for the employees. In a start-up, the number of employees is quite limited making it easier for the employers to gain a better understanding of how each employee is likely to respond to recognition. This enables them to develop a smooth, systematic, timely and fair recognition program for their employees. The key parameters that should form an integral part of every effective employee recognition program are discussed in brief as follows.

Well Defined Criteria: It is important for a start-up organization to have well-defined criteria that forms the base of its employee recognition program. Employees should be recognized and appreciated not only for their professional achievements but also their personality and behavior aspects that might help in motivating other team members. It is the responsibility of the start-up leadership to make their teams aware of the different criteria for which they might gain recognition and appreciation. At the same time, these criteria should be flexible enough to meet the changing business and employee needs as the organization grows and expands.

Timeliness of Recognition: Recognizing and rewarding the efforts of an employee well in time will ensure the effectiveness of the program. Any delays in the process can have significant negative consequences and can even reduce the morale and efficiency of the employees. One method that can be adopted by start-ups to avoid this problem is to set a specific day of the month for handing out rewards and recognition to selected employees. This ensures that the employees do not feel desperate or disappointed if they are not provided with immediate recognition and appreciation. Alternately, early-stage start-ups can choose to acknowledge and appreciate employees regularly and on the go.

Fairness of Recognition: The most important aspect of ensuring the effectiveness of an employee recognition program is to ensure its fairness. This means that the startup leadership should verify whether or not the employees nominated for recognition truly deserve the same. It is not uncommon for people to take credit of the work done by their juniors to gain the appreciation of their bosses. Recognizing and rewarding such people is not only unfair but also tends breeding dissent besides reducing the overall employee motivation in a start-up. Hence, it is essential for startup leaders to develop strategies that can help in ensuring complete fairness in handing out rewards and recognition to a deserving employee.

Variety in Rewards: Providing some sort of variety in the rewards being handed out to deserving employees is also something that startup leaders should consider. Offering the same rewards to different employees for diverse reasons makes the whole process seem formal and monotonous. By adding a bit of variety, the start-up leaders can keep the whole process innovative and interesting. It will also add a bit of surprise and excitement to the process as the employees are often kept guessing about the reward until the very last moment.

Individual Meaningfulness: Finally, it is important for the start-up leaders to ensure that the rewards and recognition being handed out holds some meaning for the individual employees. They need to understand that every individual is different and perceives appreciation and recognition in a different manner. While for some true recognition might mean the announcement of their achievements to the world, for others it might be a few words of praise spoken by their seniors in private. The same holds true for rewards, which might hold greater value for some in cash, while others might prefer receiving an appropriate gift.

Taking the above factors into consideration can help start-up organizations develop a truly efficient and result-oriented rewards program that enhances the overall workforce performance and motivation quite significantly and drive the desired business results.

HiFives Team

Will digitization of Rewards and Recognition result in loss of personal touch?

The answer to this question is a resounding NO!  People had said similar things about the telephone, computers, the Internet and so on. But as social beings, we have still managed to figure out ways to keep personal interactions going, at least in some form.

When it comes to employee rewards and recognition, there are huge benefits of digitizing and automating the process:

  1. Timeliness: One of the key requirements of timely recognition of employee achievements can be achieved through a digital platform that cuts through the manual processes of data collation, approvals, procurement, and distribution.
  2. HR Productivity: Getting rid of the manual tasks frees up the time of the HR team allowing them to devote their time and energy for more value-added activities.
  3. Digital savvy employees: With a good percentage of Gen Y employees in the workforce who spend a significant percentage of their waking hours on various digital platforms, having a traditional system of rewards and recognition is just unthinkable.

While the benefits of digitization seem obvious, what about the flipside of it in terms of reduced employee touch?

This is our school of thought, corroborated by real-life experiences in various organizations where such digital platforms have been implemented for employee rewards and recognition:

  1. Employee Events: With digitization of the processes, the HR Team now has more time to plan and execute events linked to employee rewards and recognition such as floor huddles, all-hands-meets, town halls and other formats of team meetings to recognize employees in person, typically by the manager or someone senior in the organization in front of reasonably large gathering of employees.
  2. Emails: Digital platforms would usually send out the communication over email to the team that the employee belongs to, cutting across locations and offices. Employees in other offices or locations who otherwise wouldn’t have been able to know about a colleague getting recognized or would get to know it late through a monthly newsletter etc. would be able to know it instantly as it happens. Several of the immediate colleagues might even reach out to the recognized employee over email (phone or messenger) to congratulate him or her.
  3. Digital Dashboards: A digital wall of fame can propagate the message even further across the broader organization, cutting across all boundaries of geography, functions, and teams and practically reaching all employees of the organization.
  4. Social Media: Policies in certain organizations allow the communication to go beyond the organizational boundaries into social media such as Facebook, LinkedIn, and Twitter. It might get posted through the company account or allow the employees to share the post to their personal accounts, further increasing the reach. The communication can now reach the friends and family of the recognized employee, further increasing his or her level of joy.

Overall, it does seem that digitization of the employee rewards and recognition program adds much more than what it takes away. There is no reason to believe that it would reduce the personal touch. In fact, it will improve the timeliness and spread of the communication vastly, creating a far higher level of satisfaction for the employee when one compares it with the traditional method of communication and distribution of employee rewards. It is almost like comparing an airplane with a bullock cart. Given today’s digital savvy way of life, geographically distributed workforces and busy corporate schedules, a digital platform for employee rewards and recognition is a must-have in most organizations. No second thoughts!

What are the benefits of an employee rewards and recognition program?

The management of any organization where employee rewards and recognition program has been implemented will always keep asking whether the program is delivering benefits. The management would typically want to see some tangible benefits to justify the continued funding of the program. Hence it is important for the HR team to demonstrate these program benefits on a continuous basis.

At HiFives, we have had long and deep engagement with our clients for their employee rewards and recognition programs. Based on this experience, we would like to list out a few of the benefits that should be aimed for or provided by employee rewards and recognition program in organizations:

  1. Employee performance and business impact

Done in the right way, employee rewards and recognition can reinforce good performance by employees, which would have a direct or indirect impact on business metrics such as revenues, costs, customer satisfaction, etc. For example, an employee who gets an award for achieving high levels of customer satisfaction is more often than not likely to continue to perform at the same or higher level. It might also motivate his peers to demonstrate higher levels of performance. The same would be true for an employee who is being recognized for cutting costs or driving innovation.

  1. Employee behaviour linked to company values

If executed well, employee rewards and recognition programs can deliver desired behaviour from employees in sync with the organization’s core values and beliefs such as ethics, commitment, customer centricity, passion or collaboration. For example, an employee who has worked on an important project to meet a critical deadline might be eligible for an award under the category of commitment. Another one could be that of an employee who might have resisted attempts by a third-party to secure a contract by trying to offer ‘personal incentives’ to the employee. In both these examples, the behaviour and the outcomes should be kept separate.

  1. Driving specific behaviours and outcomes

The organization can drive specific behaviours such as innovation, process efficiency, punctuality, social awareness, etc. through employee rewards and recognition programs.  For example, employees can be incentivized for good suggestions on process improvement. Another example could be of recognizing an employee who has participated in a social initiative or sporting event outside the organization.  It is difficult to incentivize such behaviours through the traditional performance assessment and regular compensation system. Hence employee rewards and recognition could be a useful tool in the HR team’s toolkit to drive such behaviours.

  1. Employee motivation and camaraderie

Employee rewards and recognition can help create a positive atmosphere of celebration within the organization. It can help foster individual-level motivation and overall team spirit. Open recognition of employee achievements can go a long way in building a great culture of appreciation of each other’s efforts.

Overall, employee rewards and recognition program that is well designed and well executed can provide significant dividends to the organization to justify the investments made into the program by the management. However, it is important to keep these objectives in mind while the program is being designed and implemented without any ambiguity. Otherwise, it will also end up as yet another HR initiative without clearly articulated benefits and well-defined ROI.

 

by HiFives Team

The Magic of Employee Recognition

Recognition is an ancient tradition in all communities, dating thousands of years. Recognition at the workplace too goes back in history. Typically top driven, it represents the appreciation of performance or achievement of an individual or a group of individuals, generally by a designated leader within the organization. Employee recognition may or may not come with monetary benefits but more often than not, it comes with high visibility within the organization.

Employee recognition has come a long way and has evolved into a more structured form of appreciation within the organization; not just restricted to leaders or managers but any employee in the organization could recognize anyone. Such peer-to-peer recognition, though a noble thought has been subject to a lot of pessimism from the management as to whether it is indeed genuine or not. Several organizations have downgraded the value of peer-to-peer recognition to well below manager recognition due to this reason.

Whatever the mechanism of employee recognition, we believe it should be timely and well thought through. It has a multiplying impact on employee motivation if done in the right way. Hence, systems and processes need to be implemented to ensure that the impact of it is fully realized by the organization. That is when the magic of employee recognition will touch the work lives of all employees and create a great work culture.

An employee recognition system should take care of the following:

  1. Enable a manager (or peer) to recognize an individual or group in a few easy steps
  2. Checks and balances to minimize bias, duplication and errors to the extent possible
  3. Financial or other authorization based on the organization structure and policies
  4. Communication to the immediate group and the broader organization easily and quickly
  5. Reporting and tracking of the key metrics

Key metrics would include coverage ratios at various levels. Usually, organizations would set a target coverage ratio for themselves. Though setting a target puts more focus into the whole process but it might also make recognition for the sake of recognition which devalues the entire concept. Hence, our recommendation would be to set a target range for employee recognition, purposely keeping it on the lower side to preserve the novelty and the value of it rather than making it an entitlement.

All this is just the science of employee recognition, driven by systems, processes and hard numbers. However, the art of employee recognition goes much beyond that – what is said and written; the honesty with which the communication is done and the timeliness of it; all matters. Systems and processes can only facilitate but it is up to the individual manager or employee to create that magic!

According to us, employee recognition is both an art and a science that helps build a culture of appreciation within the organization. This will ensure that employees think and act beyond their goal sheets and appraisals and create a positive atmosphere within the organization. Ends are always going to be important but means too are important. Hence, what is required is the magic of employee recognition that should permeate through the entire organization between one appraisal cycle and the other.

HiFives Team

 

 

 

How important is continuous communication towards the success of an Employee Rewards and Recognition Program?

 Employee rewards and recognition programs are typically launched with a great deal of fanfare within the organisation. There is usually a prelaunch communication, a launch communication and post-launch follow-up communication by the HR and the leadership team. The communication generally harps on the importance of creating a culture of appreciation and recognition within the organization. It attempts to build up excitement among the employees most often by linking it to monetary benefits.

However, as one might expect the enthusiasm dies down over time and the communication becomes a trickle. It is business as usual for everyone as they go about doing their regular work. Line managers don’t feel motivated to recognize employees as much, as employee themselves lose interest and there is hardly any push from the HR and the leadership. This is the usual story of a typical employee rewards and recognition program that had been launched with a great deal of enthusiasm.

All said and done, it is challenging to make any employee facing initiative a part of the organization culture like a habit for all employees. We, at HiFives, feel that constant communication is the key to the success of employee rewards and recognition program. Being an HR-driven initiative the primary responsibility lies with the HR and the leadership team. The communication should focus on ingraining recognition as a key organizational value among employees. There are several ways to achieve that:

  1. Visual communication: LED displays, posters, standees, tent cards, etc. highlighting the employee rewards and recognition program across the offices – workspaces, lobby, pantry, canteen, etc.
  2. Email communication: Regular newsletters – weekly or monthly; announcing the winners of the previous period and any updates on the program.
  3. Verbal communication: By Leaders, HR and Manager at all forums such as regular team meetings, town halls, etc.

Whatever the modus operandi, the key element is the continuity of the communication to keep emphasising the importance of the culture of appreciation and recognition. The communication should be top-down well as bottom-up to get feedback and insights on how the program is working on the ground.

HiFives Team