In this article Chris Dyer, chief executive officer of PeopleG2, explores different ways to recognize employee’s efforts and explores how to build a diverse reward program that goes beyond tangible rewards that workers will appreciate.
When it comes to acknowledging good work, many companies give thanks on a case-by-case basis. After all, expressing gratitude is personal, but it’s also a means of motivating workers. Does it come across as sincere when it’s part of an HR program? Yes, if it’s done right.
To take the right steps, consider what you want the outcome to be. We tell people they’re on the right track to keep them moving in that direction. Being successful at a job feels good, so talent is likely to persist and remain where it is. That’s called engagement, and according to Gallup, an engaged workforceOpens a new window boosts a company’s bottom line.
How to Design a Rewards Program to Motivate Employees
Nobody wants to be on the receiving end of empty sentiment or a lame gift. So, how can we invest in acknowledgment programs that do their jobs? By designing a diverse program that goes beyond tangible rewards, and by using metrics to include every team member.
Little gestures
Being aware of opportunities to acknowledge gives us our first tier of rewards: nontangible appreciation. Sometimes just knowing that someone noticed how we went out of our way or excelled in the course of duty provides the spark that gets us out of bed and off to work in the morning. This can happen top-down or bottom-up – to or from the boss and direct report – or from peer to peer. It can take place in passing, online, or at a meeting or formal award ceremony.
A tendency to recognize each other’s work also helps form a culture of positivity: we reserve criticism or doubt for appropriate venues while playing up the good stuff whenever we can. Witnessing others being praised encourages us to emulate or even compete with them to gain some ourselves. It’s also a mood elevator.
This is why my fully remote company hands out “green flags†in recognition of good deeds. Without casual opportunities to bond in an office, our team needed a way to honor each other from day to day. We created a special green-flag emoji that is instantly recognizable when added to a chat message with a shout-out to a co-worker. When someone raises a flag to thank a colleague for help or for hitting a sales goal, everybody chimes in with kudos. We all feel good, and the cycle of excellence is perpetuated.
Nontangible rewards like the employee of the month accolades and top-performer honor rolls are also valuable. These acts of recognition play into the basic human desires that author Daniel Pink identified as motivators—autonomy, mastery, and purpose. Verbal and print forms of appreciation are specific. They single out individuals for their unique gifts and endeavors. They’re memorable. And they’re useful.
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Bigger rewards
You may be surprised to learn that tangible rewards may be less effective than simple thanks, at times. But a program that draws on both sourcesOpens a new window is best. Research by WorldatWorkOpens a new window shows that raises and cash bonuses detract from the fulfillment of Pink’s motivating desires in the general workforce. But tangible perks are best used to attract good managers – leaders who can provide the type of guidance that encourages people to experience autonomy, mastery, and purpose.
This isn’t to say that you shouldn’t increase salaries or hand out bonuses periodically, but instead, you might complement those with other forms of appreciation. When you do use money or gifts as rewards, personalize them. Show examples of how an employee’s value to staff and the enterprise has increased when you raise pay. Give high performers the first shot at plum assignments, or let them choose from several attractive rewards, such as tickets to a big game or a popular theme park.
Suppose you want to acknowledge a small but personal sacrifice, like pulling overtime to hit a sales goal. Instead of giving Carol a small-change gift card, present her with a favorite coffee drink at her desk or a book on a subject about which she’s passionate. Get input from a co-worker if you need to. However, if you use monetary or purchased rewards, be sure to recognize the person, not just the work.
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Tracking success
It’s not easy to be both personal and objective. But leaving out employees from a recognition program can negate its positive effects. Understand that some roles are more likely to reveal success and that some individuals are more likely to broadcast it. Managers and HR professionals may have to look for reasons to celebrate underappreciated employees.
That’s where measurement comes in. We can track both employee performance and our recognition of it. This may seem wonky, but top businesses such as Google are known for measuring everything, and then further measuring those results. This can be done formally, with metrics and spreadsheets, and casually, by business leaders and managers seeking to form personal bonds with staff.
The latter system may be as simple as a written list of people with whom a manager has appreciative contact. Did you catch Bob in the hallway and tell him you loved his meeting presentation? Write it down. You might gain more insights about what motivates him when he gives you the backstory on his effort. You may use this personal information the next time he deserves a reward.
To avoid bias in criteria for acknowledgment, you can go strictly by the numbers that you already collect: sales totals, turnaround times, or customer satisfaction ratings – whoever gets the most wins. Or, you can use quality as a factor and average the reviews of several co-workers or managers.
What can we learn from this? Measurement both helps us objectively select honorees and then assess how well we support them with our form of appreciation. Google was able to isolate several critical elements in its culture this way and could, therefore, capitalize on them and make its work environment more attractive to top talent.
Want a More Inclusive and Effective Rewards Program?
Design a rewards and recognition program with all these features in mind, using measurement and employee feedback as a means of keeping it relevant. Maintaining a pipeline of praise is as essential to employee engagement as competitive salaries are. Keep your rewards system as positive and as productive as the people who keep your business going.
Do you have strategies to build a diverse rewards program to keep employees happy? Let us know on TwitterOpens a new window , LinkedInOpens a new window , or FacebookOpens a new window . We would love to hear from you.