Employee recognition programs have a positive effect not only on retention but also on engagement, culture and employee experience. By connecting recognition programs to organizational values, the company reinforces the outcomes and behaviors most linked to the organization’s values, this approach ensures programs are more likely to deliver better results vis a vis investment among employees. To meet this requirement, some organizations require a person who selects a worker for an award to provide a thesis of how the employee’s actions demonstrated corporate values. Furthermore, efforts were also associated with infusing, building and encouraging organizational values, maintaining a strong employer brand, and meeting learning and development goals.
It’s not easy to plan for what lies ahead, but retention is not likely to get less challenging anytime soon. As leaders learn more about the positive outcomes that can result from a corporate principle based approach to recognition, steps will be undertaken in a planned manner, perhaps even as part of the larger planning process.
If a recognition program is currently not in place, consider designing one. While implementing the recognition program, make sure it is inline with organization’s core principles to get the best results and possibly a tangible competitive edge. By rewarding employees for practicing organizational values, they publicly display the organization’s commitment to these values. This can help align workplace culture with these values and develop trust among resources.
The keys to designing an effective recognition program are as follows:
- Deciding on the company organizational values and goals that the recognition program will reward.
- Aligning the expected employee behaviors or performance that will reinforce the company’s values and goals.
- Determination of main criteria for evaluating the performance or behavior of the employee.
- Choosing the best method to reward the deserving employees.
- Conveying the merits of the program to employee.s
Some common examples of Employee Recognition Programs for Employees
- a monetary takeaway for the employee who delivered the outstanding sales performance this week.
- a spot reward for the employee who is observed to be a complete team player and contributed to the progress of a team.
- a sales incentive increment for sales revenue that exceeds last year’s sales in a stipulated period by more than 10%.
- a monetary reward for meeting KPI’s and KRA’s for each department.
- a monetary award for attendance.
- a monetary award for the most well behaved employee.
- a monetary award for the best dressed employee.
Types of recognition programs
There are a number of different types of reward programs aimed at both individual and team performance.
- Variable Pay
Variable is a monetary incentive program in which a portion of a person’s pay is released when set expectations are met. Variable pay can be linked to the performance of the company, the accomplishments of a department, an individual’s achievements or a combination of any these.
- Bonus Programs
Bonus programs reward employees when they meet KPI’s or KRA’s in a particular year. Usually released at the end of the year it rewards an employee’s performance for the previous year, they are thoughtfully designed to reward outstanding performance in a calendar year. Bonus programs can be an effective tool to motivate employees to meet targets.
- Profit Sharing
Profit sharing refers to allocating a percentage of the company’s profits. The amount given to an employee is based on the annual earnings of the company and is usually proportional to the employee’s salary. The idea behind profit sharing is to reward employees for their contributions to a company’s achieved profit goal. It motivated employees to stay engaged and focused because it is designed to reward loyalty.
- Stock Options
Here a specified number of a company’s shares at a pre-determined price for a specified time period are allocated to the employees. They are generally sanctioned by a board of directors and approved by its shareholders. Rewarding employees as the stock price goes up over time ensures that shareholders, management and employees share the common goal. Certain percentage of the company’s outstanding shares are generally set aside for stock options. Stock option plans instills a sense of loyalty among employees towards the company.