Six steps to building an employee recognition program

How many times have you said thank you to your employees this week? If you think that employees are not interested in words, think again. 

Studies consistently show that while competitive pay and bonuses are significant motivators, non-monetary rewards like consistent recognition also drive employee engagement, satisfaction, and retention. Building a recognition program that makes employees feel valued is a smart investment in a company's future.

Why does employee recognition matter?

• Employees value meaningful recognition. A personal thank you from a manager to her employees goes a long way. Bob Nelson, a best-selling author and recognition expert, explains that employees value personal verbal recognition from their manager as much as a pay raise. 
• It boosts work satisfaction. Substantial research about the different types of employee rewards shows that non-monetary rewards are as important as financial ones when it comes to job satisfaction. Employees who are satisfied with their jobs are likely to perform better and be more creative and engaged.
• Improves productivity and performance. Recognizing people's work is more important than one might think. As a matter of fact, 40% of employed Americans say they’d put more energy into their work if they were recognized more often. Moreover, research from Harvard Business School showed that employees who receive non-monetary rewards have higher morale and tend to go the extra mile in their work. Overall, companies that have a culture of recognition see improvements in employee engagement, talent retention, productivity, and creativity. 

However, creating an effective recognition program requires structure to avoid favoritism and ensure inclusivity.

Six steps to building an employee recognition program

Creating a recognition framework is a great way to support organizational goals. Below are the steps to establish a successful employee recognition program.

1. Create a strategy

Define the purpose of the program. What do you aim to achieve? Increased engagement, reduced turnover, or a stronger company culture? Answer key questions such as the program's duration, the teams it will cover, and how success will be measured.

2. Define the program's mechanisms

Clarify details like who will deliver recognition, what kind it will be (e.g., public praise, digital badges, symbolic rewards), and how often. Be specific about the behaviors you want to encourage and recognize.

3. Establish program governance

Appoint responsible individuals to oversee, implement, and communicate the program. Identify those who will monitor progress, judge performance, and ultimately deliver the recognition. This ensures a smooth and fair execution.

4. Select digital recognition tools

Digital tools and AI-driven platforms are paving the way for streamlining recognition. Many companies are adopting recognition software that integrates with tools like Slack and Teams, enabling real-time recognition wherever employees are. This approach supports easy tracking and encourages frequent, consistent recognition.

A current top trend is peer-to-peer recognition, where employees recognize each other's efforts, which enhances team dynamics and accountability. Consider incorporating mobile recognition platforms that enable peer acknowledgments in real-time, strengthening a culture of continuous appreciation.

5. Communicate the program to your employees

You're now ready to kick-start the program! Can you present it to the staff in an engaging format? You can perhaps present it in a video format or you could make it an offsite activity. Whatever format you choose, make sure to share all the aspects of the program. Ask yourself: if I were an employee, what would I need to know about this program to fully participate and to be motivated to deliver the results expected?  

6. Monitor, assess and collect participants' feedback

Like any project, it is critical to monitor the implementation and ask for participant feedback. This allows you to assess the program's success and make any amendments for the next season. Move beyond a one-size-fits-all approach. Personalized rewards like gift cards or experiences allow employees to choose meaningful incentives, which helps build a more significant emotional connection and loyalty to the company.

Conclusion

Don't underestimate the power of recognition for your teams. By incorporating these strategies, your organization can develop a recognition program that enhances employee satisfaction, aligns with organizational values, and keeps teams motivated and engaged.

Recommended further reading:

• 4 ways HRMS can improve employee recognition
• 3 HRMS data tools to help you with tracking employee recognition
• 3 common mistakes in HRMS employee recognition management