Purpose That Recognition!

I'm constantly amazed when companies think that a good recognition program consists of cash awards--as if that's what will motivate everyone to want to contribute more to their company.  And when they look at their turnover rates year after year, they still find that their best people are leaving. 

I think the big question a company often leaves unanswered when trying to design a recognition program is WHAT ARE WE TRYING TO ACHIEVE?

Imagine being able to answer that question and then putting together a cohesive and competent recognition plan! 

If you're trying to reduce turnover, a nice cash incentive-based program might put some of your talent over the edge in terms of stress just to get a few extra dollars in their pay slip.  If you constantly reward only your Top Ten Employees, the rest of them (hey...that's 90%) might starting wondering to themselves "why bother" and slowly REDUCE their productivity because you've decided to neglect them with any extra perks.  Perhaps you offer such meaningful recognition programs as a "special parking space" for a month or use of the restrooms on the executive-level (and no, I'm not kidding about this...I've seen it done...). 

If you're the one in charge of developing a recognition program, you might want to consider taking the following best practices into account from the National Association of Employee Recognition:

• Have a well-defined and well-written strategy
• Have buy-in from Senior Management
• Have good measurements for success (Have you increased employee satisfaction?  Are people using their rewards?  Has customer satisfaction improved?  Has turnover reduced?)
• Create a robust communications plan to promote your program and provide updates
• Train people on the program
• Plan for public celebrations
• Include scalability and flexibility in your program so you can add or change elements over the long term

I advocate an annual look at your recognition programs to come up with a current theme.  It keeps the program fresh and people will appreciate a variety in the rewards.  As we have more Baby Boomers staying on the payroll longer and an increasingly Generation Y employee looking for meaningful work that allows an appropriate work/life balance, you have to look at your recognition programs from diverse perspectives to make sure people appreciate them.  In other words, survey your people from time to time to see what kinds of recognition they want.

Comments

[Spencer Schmerling]

You’re right! It is important to have a good reward system in place that employees both understand and make suggestions to. The best systems are in place because employees themselves get to make suggestions and ultimately change it depending on whether or not it motivates them. And the best way to find out how employees feel about a certain system is simple enough: just ask them!