Develop an effective recognition and reward program

A good employee recognition and reward system provides employees with three things:

• A fair return for their efforts
• Motivation to maintain and improve their performance
• A clarification of what behaviors and outcomes the organization values

Here are 10 guidelines for recognizing and rewarding employees:

1. Involve employees in designing your recognition program

You don't need to make a huge financial investment to implement a meaningful recognition program. 41% of employees want more appreciation from their co-workers – simply being acknowledged by peers for the good work they do creates a sense of pride and accomplishment.

One way to ensure your recognition program encourages this is to involve employees in the design process. If they help create it, they will know exactly what they have to do to earn rewards.

They will also know what is expected of their peers, which fosters a supportive culture of teamwork throughout the company. With your employees’ input and insight, you’ll ensure that the program provides everyone with an opportunity to earn a reward.

2. Specify reward criteria

Rewards for things like "innovation," "showing initiative," and "quality improvement" often don't clearly define what employees need to do to win. Without that information, some employees will be stymied before they begin. Some may attribute a co-worker's success to favoritism or luck. Or, if you offer an award on an ongoing basis, such as "employee of the month," they may think everyone's turn comes up eventually.

Any successful business effectively sets clear goals and outlines the company’s mission with employees and setting reward criteria should be approached in the same manner. Ensuring your employees understand exactly how to receive rewards will motivate them to do better – in fact, one in nine employees say that recognition encourages them to put in more effort.

3. Reward everyone who meets the criteria

You could announce a contest, urge everyone to participate, provide plenty of reminders during the contest period, and announce the winner with a flourish. Then what? You've got one winner, with the rest of the team feeling disappointed that their hard work didn’t pay off. For a longer-term and wider impact, determine specific criteria and reward everyone who meets them. Publicize each accomplishment and acknowledge each achiever. As long as the criteria are meaningful, the more winners the better!

4. Recognize behaviors as well as outcomes

In most organizations, results earn rewards. While this makes sense, it’s also important to use recognition for employees who are improving – not just those already at the top. By recognizing positive behaviors, you send a message that being a great employee goes beyond business results, and that company culture is equally important.

These positive behaviors can include helping a teammate, mentoring a new colleague, or effective communication, and by giving recognition you can reinforce incremental improvements. This doesn't mean you should arrange a parade in someone's honor just because they simply did what’s expected; simply saying thank you or giving specific positive feedback goes a long way.

Moreover, according to 86% of HR leaders in a recent SHRM survey, organizations with effective recognition programs see improved company culture. By rewarding positive behaviors, you are enhancing the organization as a whole.

5. Individualize rewards

Give people what they want. Before you give a workaholic a week off, make sure it won't feel like exile to that person. On the other hand, before you reward someone with an exciting new project, find out if the recipient will be thrilled or feel burdened.

6. Say "thank you" frequently

Saying "Thank you" is one of the simplest and most important ways to recognize employees. A study by Gallup found that 74% of US employees who are praised for their work feel it shows that the tasks they carry out are valued and useful. It validates the importance of work people do, and it starts a chain reaction - soon more people start saying it to others, boosting morale, improving relationships, and motivating people to work better.

7. Nurture self-esteem

When you give people positive, specific, and realistic feedback about their potential, efforts, and accomplishments, their self-esteem goes up. They develop into employees with the confidence to set and meet challenging goals, overcome setbacks, and self-manage their work. They are also happier – 82% of employees see recognition as a key part of their happiness at work. And employees who are more satisfied and confident are more likely to stay within your organization, meaning you retain top talent.

8. Foster intrinsic rewards

Intrinsic rewards are the good feelings people get from doing their work; enjoyment of the task, excitement about the opportunities, and pride in doing a good job. You can't hand someone an intrinsic reward, but you can create an environment that encourages these feelings. Make sure people know their work is worthwhile, treat problems as opportunities for innovation, encourage people to try new approaches and let them know when they have done a good job.

9. Reward the whole team

For team accomplishments, it's important to reward the whole team, otherwise you foster competition, not cooperation. The Gallup study revealed how important team recognition is for trust: 66% of employees in teams that receive adequate praise strongly agree with this statement: "I trust the colleagues with whom I work on a regular basis."

Still, there are always some team members who give more effort, and sometimes there are members who coast along on the efforts of others. When the coasters get the same reward as the doers, resentment builds. Some companies are meeting this challenge with a double-tiered system of team and individual rewards. What ties it together is that for individual rewards, the assessors are fellow team members.

10. Be careful

There are numerous ways to reward employees but remember: you get what you reward. If you are looking for teamwork, be sure you aren't rewarding competition. If you want people to resolve problems, don't reward them for covering up complaints. If you ask for initiative, make sure you’re really paying attention to employees who are stepping up.

By creating the right rewards and recognition program, you can do wonders for your employees’ productivity, engagement, and happiness. For more valuable advice on how to enhance your workforce, get in touch with one of our experts. We’re always happy to find the right solution for you.