EMPLOYEE RECOGNITION & ITS IMPACT

( Figure 01 , Source : http://www.outboundpeople.com/) 

There is a saying that money cannot buy everything. Just as that, one of the factors that improve employee performances is employee recognition. 

A large number of studies over the years have verified that recognition is indeed a powerful positive reinforcer for employee behaviors leading to performance improvement in both manufacturing (e.g., Luthans, Maciag, & Rosenkrantz, 1983; Ottemann & Luthans, 1975; Welsh, Luthans, & Sommer, 1993) and service (e.g., Luthans, Fox, & Davis, 1991; Snyder & Luthans, 1982) organizations.

Recognition is also defined as acknowledgement, approval and appreciation which can be on a formal basis or informally and also monitory or non-monitory.

Recognition is so easy to do and so inexpensive to distribute that there is simply no excuse for not doing it.; - Rosabeth Moss Kanter, Author and Management Consultant.

We all like to be recognized and appreciated. Just by giving an award or recognition certificate, formally recognizing someone in front of a group or even buying a cup of coffee, we’re telling the employee that their work is appreciated. - Harvey Stein, President, Stein & Read Incentives.

Its Low Cost but Hight Impact!

How do recognition and rewards impact employee engagement and performance?

Reward your employees and recognize employees improve the employee engagement which help to motivate employees, increase productivity, increase performance, increase retention and also helps to build a positive workplace. Most of the orgernization now has separate programs to incorporate rewards and recognition of their employees. It also creates benefits as follows;

• Build a Positive Work Environment. Negativity at work can be expensive.
• Reduce Employee Turnover and Improve Retention.
• Foster Company Loyalty.
• Improve Employee Engagement.
• Boost Productivity.
• Improve Morale and Employee Happiness.
• Helps with Recruiting Top Talent.
• Alignment Through Core Values.

What are the negative effects of recognition?

• ·         Competition
• ·         Lower self esteem - Most recognition and incentive programs, including competitions, only reward the high performers
• ·         Focus on wrong things
• ·         Work life imbalance

So, how can we implement a recognition-based culture in the organization?

The employee recognition is a very power tool that the leaders can use to get the cream out of employees. However, recognition of employee system should be customary designed to reflect the organizational needs. Kopolos, 2017 describes 10 ways to create a recognition-based culture in an orgernization.

1. Make it personal

It’s critical to be specific, personal and accurate. Use positive words, and demonstrate to the employee that you actually understand their accomplishments.

2. Provide opportunities

Some workers don’t get the chance to excel because of the nature of their jobs or reduced expectations for certain types of work. Employees who do their jobs well should be able to earn opportunities for expanded responsibilities and training for job advancement.

3. Magnify recognition

While verbal communication is clearly the most effective way to recognise employees, the best strategy is to back it up by publicising employee accomplishments across multiple forums such as company newsletters, dashboards and in team meetings.

4. Offer beyond-the-call-of-duty perks

Employees who consistently perform at the highest levels might earn special privileges. These might include such things as a better parking space or paid time off

5. Motivate with financial incentives

Although financial incentives aren’t always the best motivators, they can certainly demonstrate appreciation for work well-performed. The best financial incentives are more open-ended and unpredictable because they motivate people to work their best at all times.

6. Give holiday rewards and bonuses

The best practices for awarding holiday bonuses include offering a standard bonus or gift package and rewarding people for outstanding performance with special awards, extra cash bonuses, holiday gifts or recognition for yearly performance.

7. Facilitate peer-to-peer recognition

Employees often prefer recognition from their peers than acknowledgement at the office, so many companies implement peer-to-peer recognition programs to engage millennials and the new generation of flexible workers.

8. Recognise people’s passions

Workers love to be recognised for their outside activities, hobbies and passions because it prevents people from feeling as if they’re just cogs in the business machine. Passions can also work as rewards in their own right.

9. Embrace gamification

Gamification strategies can be used in various ways to reward and motivate your employees to reach higher performance standards. A rotating trophy or plaque can generate enthusiasm that’s exceeds the investment. Of course, the more impressive the trophy, the more likely it will generate friendly competition.

10. Use technology and social media to publicise accomplishments

People don’t live in a vacuum in today’s environment of instant communications, so it’s important to publicise important accomplishments and even human-interest items in the company’s social media forums.

Reference

Fred Luthans, The Impact of Recognition on Employee Performance: Theory, Research and Practice, Accessed at : https://www.researchgate.net/profile/Alex-Stajkovic/publication/228536942_The_Impact_of_Recognition_on_Employee_Performance_Theory_Research_and_Practice/links/09e4150c0d5073ce45000000/The-Impact-of-Recognition-on-Employee-Performance-Theory-Research-and-Practice.pdf

Annamaria Mann and Nate Dvorak, 2016, Employee Recognition : Low Cost, high impact, Accessed at https://www.gallup.com/workplace/236441/employee-recognition-low-cost-high-impact.aspx

Ari kopoulos, 2017, 10 powerful ways to improve your employee recognition, Accessed at : https://www.hrmonline.com.au/section/strategic-hr/10-ways-improve-employee-recognition/