A how-to guide for enhancing employee morale and wellbeing

In a landscape where employee satisfaction and performance are paramount, understanding the pivotal role of recognition is indispensable. Recent surveys among U.S. employees underscored a resounding consensus: Alongside concerns for benefits and wellbeing, recognition emerges as a cornerstone of workplace priorities. Companies that prioritize intentional and personalized recognition see significant payoffs. According to Deloitte, recognition is highly correlated with improving employee engagement and job performance.

As leaders look to increase engagement and recognition efforts, here’s how to make 2024 the year to build robust recognition programs that transcend mere gestures, fostering a culture where high-quality acknowledgment is a guiding principle driving sustained engagement and success.

What the research says

In a recent survey of U.S. employees regarding their priorities for the upcoming year, the top three concerns were employee benefits, reward and recognition, and wellbeing. According to respondents, the third most effective way for managers to improve wellbeing is by providing regular feedback and recognition. One-third of employees believe consistent acknowledgment holds greater significance than a 10% salary increase. However, the survey revealed areas for improvement, with 2 in 5 individuals unable to recall receiving recognition from a manager or senior leader in the past year, and 60% expressing a desire for more frequent acknowledgment.

Acknowledging good work is frequently underestimated as a motivator, yet it plays a crucial role in retention and productivity. For 78% of employees, it increases their likelihood of staying with the company, while 76% find it a motivation to work harder. Recognition is a powerful force that significantly influences employee engagement and commitment.

The significance of “why”

Creating a robust culture of consistent employee recognition should be designed with the “why” at the forefront. Author Simon Sinek has said, “When you start with ‘why’ in everything that you do, you inspire action in a way that ‘what’ doesn’t.” The “why” behind implementing an employee recognition program often ties into desired outcomes like creating a positive work environment, fostering a culture of acknowledgment, motivating high performance, and reinforcing specific behaviors.

When deciding the specific motivations to design a recognition program around, consider the organization’s culture, values, business objectives, and targeted areas for improvement. Crafting a purpose-driven program increases the likelihood of effectively addressing these challenges and instigating positive transformations in both your workforce and business.

Determine the details

Once the “why” has been laid out, it’s time to map out the details of the program, which means bringing in the “what,” “who,” and “how” of the program. A “what” question example is: What types of recognition awards (if any) will you incorporate into the program, such as gifts, experiences, or cash/? “Who” questions center around who will administer the program, who can receive recognition, and who will be able to send each type of recognition. “How” questions focus on the manner in which this will be accomplished, such as the system and processes that will be used to manage the program effectively.

Consider your company’s unique needs, factoring in size, industry, and workforce. Prioritize aligning values, objectives and principles with your business goals and HR strategy. Discuss and secure agreement on these choices with key decision-makers before initiating program design to ensure inclusive contribution and aligned expectations.

Build your recognition program

Creating a space that allows recognition to cut through the clutter of other announcements and notifications requires building an unforgettable reward and recognition experience. Here are several strategies that work well for cutting through the noise:

Peer-to-peer employee recognition: Individuals can exchange moments of recognition, such as personalized eCards, to highlight instances of values-driven actions, commemorate achievements big or small, or extend greetings to new team members.

Social recognition: Employee recognition works best when others can also be part of the celebration. Make recognition public facing in whatever online communication platform your company uses so that others can react supportively in real-time emojis and comments.

Instant award delivery: Allocate budgets to managers to reward their top performers with redeemable gift card rewards at national retailers. These rewards are highly desirable to employees and can be redeemed for whatever category – from wellbeing to entertainment to travel to fashion – matters most to the individual employee.

Peer-to-peer nominations: A peer-to-peer company award program, such as Employee of the Month, gets everyone involved in nominations and shines a spotlight on valuable contributors. While manager-led recognition is a critical aspect of any recognition program, peer-to-peer recognition helps to foster an environment where colleagues can publicly promote and appreciate each other’s contributions.

Related: Most U.S. employees feel appreciated at work, but gaps still remain

Recognition programs should never be a one-time effort. To harness the strategic power of employee recognition, it must be woven into a company’s culture. Picture a stone skipping across a pond: each touch creates ripples. Similarly, recognizing someone’s achievements sets off a chain reaction within your organization. As recognition becomes a cultural norm, its influence spreads across the organization. These ripples amplify when your team integrates recognition into their daily routines, positively impacting team and company objectives.

Alexandra Powell, Director of Client Cultural Insights at Reward Gateway