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Overview: Traditional staff reward programs have their place, but it's the phone calls from the CEO and the flowers that arrive for no reason that help set them apart.

 

 


Takeouts:

  • A well executed recognition program ensures staff members not typically acknowledged for their contributions are shown that they are valued.
  • Recognition programs do not have to be costly, and done well, can be very effective at fostering genuine loyalty and appreciation from staff at all levels.

 


In today's increasingly competitive labour market,
many businesses are implementing reward programs to motivate and retain high performing sales staff. But an often overlooked area that should potentially command as much attention as a rewards program for sales achievers, is a recognition program for non-revenue generating staff members.

Rewards and recognition are not the same thing. Rewards are usually given to key individuals for specific behaviours that directly influence bottom or top line revenue. 'Recognition' programs typically have quite a different focus and purpose. That is, to ensure that everyone in the organisation not covered by conventional rewards has the opportunity to be valued and appreciated for their unique contribution to the overall aims of the business.

Although it's true that rewarding people is one way of recognising their contribution, a rewards program needs to be complemented by an organisational culture that affirms employee's contributions regardless of where they sit in the hierarchy or how great their contribution to the bottom line.


What is Recognition?

To recognise something is to see it for what it is. It is typically a token of thanks or approval.[1] While the word token in some contexts can be interpreted as being 'nominal', (e.g. a token gesture), it is important to understand that a recognition program is not directly linked to either the significance of the achievement or the cash value of the recognition gesture.

Employee recognition does not need to be expensive. For example, saying 'thank you' to employees for a job well done takes no money and very little time but will help build relationships and foster trust. Indeed the simple act of thanking staff should be the foundation of any genuine recognition program.

Recognition can take many forms: a personal phone call from the CEO; a bouquet of flowers; a handwritten note from a supervisor; a dinner or public affirmation. All of these initiatives can be used to great affect to affirm the 'unsung heroes' in your organisation. Recipients may not stand out in high profile projects and may not be sales superstars, but they are still members of the team, working in the shadow of more visible accomplishments by others and indispensable to the company's success.[3]


What Recognition is Not

Here are three pitfalls to avoid in developing a recognition program for your organisation:

1. Starting (and ending) with length of service

Which employees traditionally get recognised most often? After high-performing revenue generators, typically, it's those who've been around the longest.

According to a recent US survey conducted by WorldatWork and the National Association for Employee Recognition (NAER), 87% of companies surveyed use length of service as the main foundation for their staff recognition program.[4]

The problem with basing recognition on only this criterion is that length of tenure does not guarantee that the employee has made a contribution worthy of recognition. Thus you end up with a situation where people are affirmed simply for hanging in there when they may in fact be high-maintenance, marginal performers!

In these situations, the impact on those with less service but more deserving of recognition is to devalue the concept of long-term service.

A recent Australian survey[5] revealed that companies are twice as likely to recognise their employees with gifts or prizes at their farewell party - when it's all too late - than to reward and recognise a job well done during their tenure and potentially influencing staff retention rates while the employee is still actively engaged in the company.

> Lesson One: Take recognition measures beyond length of service, and don't save well-meaning gestures until it is too late.


2. Bias towards high-revenue generating males

The same Australian survey[5] found that men and women are not recognised on equal terms with it comes to receiving gifts and/or prizes. Many firms still practice public affirmation of those who create the greatest revenue (e.g. sales, billable hours) - which research shows tends to be dominated by males.

This means that the 'management professionals' (e.g. HR, Finance, IT, Marketing) - without whom the high revenue generators would not perform half as well - are often left in the background and can sometimes feel like second-class citizens. As such, embedding in your firm's unsung heroes a genuine sense of self-worth and a realistic understanding of what they contribute and where they really fit in is vitally important.[6]

> Lesson Two: Management should ensure recognition efforts filter throughout all positions within the company.


3. A one-size fits all approach to recognition

Don't assume that what makes you feel good in terms of recognition will make others feel good too. To be truly effective, recognition strategies should be tailored to individual preferences.

When it comes to affirming staff contributions, think of gift-giving rather than offering a reward. A gift communicates appreciation; it esteems value. People who receive thoughtful, tailored-for-them gifts from supervisors who know their interests and ambitions will feel honoured and appreciated.[7]

> Lesson Three: Tailor recognition efforts to individual preferences for maximum impact.


Recognition that Works

According to Wirthlin Worldwide, a US research firm, the key elements of a successful recognition program are senior management participation, recognition in front of peers, and timely delivery of the recognition.[8]

To develop a workplace environment that values the quiet achievers as well as the high flyers in your organisation, consider the following ideas:

  • Make a point of saying thank you when staff members go above and beyond the call of duty, or simply do a good job. Make praise sincere, specific, and don't dilute it with criticism.[9]

  • Develop a corporate culture that affirms desired behaviours (e.g. safety). In the long run you get what you pay attention to.[10] If Management comment positively on efforts that maintain the organisation's core values, staff will soon understand what's important.

  • Do your homework. Train Management to observe the things their team members like doing outside of work (e.g. their hobbies, interests and passions). This can be done both as part of a formal review process or during normal work interactions. Then, of course, integrate these interests into recognition efforts for each employee.

Peer Recognition in Action -
The New England Pharmaceutical Company.

"We have something we call Gold Star awards and they are awarded on a monthly basis. They are awards that staff members can nominate other staff members for a job well done. It can be used to thank someone for staying late to get a report out the door or show appreciation for someone putting in effort that is above and beyond the normal call of duty. These go over very well from both sides. The employee making the nomination feels they have the ability to
say thank you and the receiving employee feels appreciated and valued. The award is a $50 gift certificate for dinner and a golf shirt."[14]

  • Develop a 'Recognition Menu' for the organisation. Set guidelines around the investment allowed in a recognition program. These can be either financial (i.e. spending limits) or 'technical' (i.e. lists of company approved recognition items)

  • Be creative in thinking of recognition initiatives and have a mix of options available. Recognition can be both formal (e.g. awards, certificates, points-based online rewards programs, etc), or informal (e.g. handwritten notes, gift vouchers, an afternoon off). A recent bank of America benchmark study of 118 companies on recognition[11] found that a mix of programs - peer-to-peer, manager-to-employee and company-to-employee - worked best for most companies.

Conclusion

Although recognition shares some similarities with conventional rewards programs, a recognition program affords everyone with the opportunity to be genuinely encouraged. Recognition is the oil that greases the wheels of daily business operations. People work best in an environment that makes them feel valued.[12] Supervisors who sincerely recognise staff members for their accomplishments know that recognition enhances work performance. Appropriately recognising unsung heroes will unlock the power of pure appreciation to help create a high performance, high satisfaction workplace.

References:

[14] 81 ways to treat employees with respect and dignity - http://www.humanresourcescouncil.org/pdfs/jan2_presentation.pdf

 
About Regent Recruitment

Regent Recruitment is a recruitment consultancy that assists leading Australian employers to attract and retain talented staff on a contract, temporary or permanent basis. Whether we are filling one permanent role or recruiting contract staff for a 400-seat call centre, we deliver an exceptional recruitment service.

Unlike other recruitment consultancies, Regent Recruitment is unique in that it combines the capabilities of a large-scale multinational recruitment operation with exceptional service levels typically only associated with small boutique agencies.

How can we assist you?

We would welcome the opportunity to have a confidential meeting to discuss your staffing needs in more detail.

If you are interested, in the first instance please call Howard Mereine, General Manager, on (03) 9909 7150 or e-mail Howard at hmereine@regentrecruitment.com.au.

We look forward to speaking with you.

 

This article was licenced by Regent Recruitment for the Regent Recruitment client newsletter.
Written by Victoria Small, and edited by Paul Quinn, Quinntessential Marketing Consulting Pty Ltd.


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