Who doesn’t like to feel appreciated and their efforts recognized? There’s no one. Human beings crave recognition, and companies that understand this deeply ingrained need reap the most benefits in motivation, engagement, and productivity.
In this piece, we’ll talk more about why employee recognition shouldn’t be ignored by decision-makers, and the different ways to reward your team besides a high-five (virtual or not) and a “Good job!” message.
When people don’t feel valued, they look for greener pastures. Given that replacing a salaried employee can cost roughly six to nine months’ salary, recognition deserves far more attention. It’s a business priority, not just a nice-to-have corporate culture.
Beyond boosting retention, a culture where people feel seen and appreciated makes it easier to reinforce positive behaviors, strengthen culture, build bonds between colleagues, and boost employee involvement.
Yet, this year’s Engagement and Retention Report from Achievers Workforce Institute shows that only 25% of employees feel properly appreciated at work. The same report highlights the importance of an efficient award-based program, with 71% of interviewees saying recognition helps them find meaning in their work and consider a long-term career within the company.
But companies also need to understand that merely having a recognition program is not enough. It takes a combination of actions, rewards, and channels to show real appreciation.
Rewards and tokens of appreciation can come in a wide range of formats, but for some occasions, nothing beats the weight of a physical artifact, such as trophies, engraved plaques, or custom awards. They serve as permanent visual anchors of achievement.
For instance, custom crystal awards from Awards are perfect for specific milestones and noteworthy achievements. Major events in one’s career, like 10 years with the company or completing a large project that pushed the organization forward, feel better when carved in a physical form.
Physical awards take more time and thought than digital rewards, which is why employees value them more. It’s a great way to make someone feel special.
In the age of AI and Slack messages, companies use specialized digital tools to show their appreciation and dole out praise. Given that the global employee recognition software market is valued at over $1 billion annually, one might say some companies rely too much on digital tools for what should be a human-to-human interaction.
Still, when you’re dealing with hundreds of employees, it’s difficult to keep track of minor achievements (which are still important). This is where employee recognition and rewards platforms like Workhuman, Achievers, Bonusly, and others can shine.
Companies use them to distribute points or internal digital currency to employees each month (within a predetermined budget). Employees can use them to engage in peer recognition and send points to their colleagues based on tagged company values (e.g., #Innovation or #Teamwork).
As points accumulate, employees can exchange them via digital catalogs for gift cards, merchandise, cash payouts, or charitable donations.
Organizations also use digital tools to automate repetitive milestones, such as work anniversaries, birthdays, and goal completions. Once the system recognizes an event, it triggers automated public announcements on internal message boards alongside pre-allocated digital gift cards or spot bonuses.
At the end of the day, there is no universal way to show appreciation. Each company is different, and employees have specific needs and wants. It is up to the managers and decision-makers to take the time to understand which combination of digital and physical rewards works for their team(s).
One thing is sure: recognition should not be ignored or done superficially. Employees know when praise is genuine and when it’s done for the sake of good practices.