What is Employee Recognition?

What is Employee Recognition_

What is the most memorable employee recognition that you’ve received? 

Perhaps it’s a grand award, cash prize, or gift certificate. More likely, it was a personal note or the look of utter gratitude you received from a colleague. 

Although we believe that the best employee recognition comes from big money items, the most impactful employee appreciation usually comes from recognition that creates a human connection. Real recognition has little to do with big rewards. 

I’ve received grandiose employee appreciation awards from previous employers in the form of  international trips, big events, and expensive dinners. But, the recognition that means the most to me is not big, extravagant, or show-dazzling. 

The most impactful recognition I receive is a demonstration of trust my manager has in me. It comes in the form of autonomy my manager, gives me, allowing me to do my job best. It’s expressed in genuine gratitude of my team and manager. And it is felt in the trust, and confidence Brandon gives our team (the opposite of micromanaging and criticism.) 

Employee recognition is often referred to as Years of Service awards, Peer Recognition, or Daily Recognition. While those are important aspects of employee appreciation, there is much more to recognition than going through the motions of employee recognition. 

At its core, employee recognition is about connection, belonging, and contributing to the community and team. When done right, employee appreciation inspires employees to work harder.

Employee recognition comes in many forms: official events, formal acknowledgment, public praise, certificates, awards, gifts, celebrations, dinners, and notes. But, the most effective recognition happens when managers and teams connect.

Employee Recognition Means Many Things 

A survey by Thanks found that more than half of managers think of employee recognition as a “Years of Service” award. Many other managers envision employee recognition as a certificate or award that employees “earn.” 

But employees feel differently, depending on the generation of the employee. Because of cultural expectations, older employees often put more weight on Years of Service. In the past, employees expected to work for one or two employers during their careers, and pension plans ensured that employers provided retirement. Years of Service was critical because it determined the employees expected returns at the end of their career. 

But, Millennial employees place little to no importance on Years of Service Awards. Instead, Millennials value growth, mentoring, and daily peer recognition above traditional recognition methods. As employees fall closer to the boomer or Millennial generation, they tend to move along the same spectrum in how they view recognition.

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Defining Employee Recognition

At its core, employee recognition is the expression of gratitude to an employee. It is also an expression of trust. Employee gratitude can be publicly given or privately expressed. Employee recognition improves employee engagement and happiness levels. It helps employees feel like they belong in an organization, and it builds connections. 

Employees gain a deeper understanding of their impact on their work community. The employee feels a greater connection with the person recognizing them. 

Recognition doesn’t have to come from the manager. Peer recognition is gratitude and praise that colleagues or teammates give. It can involve social recognition-accolades shared on social platforms. Any form of appreciation by a peer counts as peer recognition. 

Because the employer can’t force peer recognition, it is very effective. It helps to strengthen teams and increases loyalty to the team. 

Some people think that recognition has to be public, but it can also be private. A simple note or a sincere “thank you!” remains a very effective appreciation. 

The employers who see the greatest ROI on employee recognition successfully make recognition a part of the company culture. Three keys continue to be a part of successful employee recognition cultures.

1. Employers With Official Recognition Programs Recognize Better

Many companies prefer to think that recognition should happen spontaneously and naturally. But, unless a company has a solid recognition program and budget, recognition is probably falling by the wayside. 

A strategic employee recognition program will combine technology and training to make recognition easier for employees to give. Employees should have access to software that makes recognizing seamless and simple. Training employees on the importance of recognition and providing them with the tools to identify are important aspects of creating a culture of recognition. 

When employers provide tips, examples, and training on effective employee recognition, it makes it easier for employees to recognize each other without interrupting workflow. Giving employees the ability to share or gift redeemable points allows them to add a gift to their recognition when desired.

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2. Recognition Programs Should Allow Autonomy 

Successful recognition programs should give employees autonomy when complimenting because powerful praise should be personalized. The recognition will fail to produce positive results if employees are forced, coerced, or micro-managed into giving accolades. 

Instead, a culture of gratitude should be cultivated, not compelled. Managers should lead by example, not force.

Employees should have multiple methods they can acknowledge others. Giving employees autonomy and trusting them to choose how to, and when to recognize others is a key to successful recognition. It implies trust and requires trust in the team.

A good recognition program will provide a variety of methods, messages, and awards that employees can access. Because not everyone has the same appreciation language. (link) Providing various public and private tools helps create more success around an environment that cultivates recognition. 

3. Recognition Should Tie to Core Values

Not only should recognition tie into core values, but it should also be a part of a company’s core values. Every business has core values and a mission. Hopefully, yours is written down and defined. Recognition should tie to the corporate values and mission. 

But recognition should also be part of the company’s mission and values. Generally speaking, employers care about their employees and want to provide positive environments. Although it’s not always stated, it’s a core part of company culture. When employees know they are a crucial part of their team’s success and contribute to their communities, they perform better, connect deeper, and experience greater job satisfaction.

Benefits of Recognition 

Do you know how often employees should be recognized? 

When Gallup asks employees about recognition, they use a weekly metric, but most employees report that they would like to be recognized more frequently. Millennials want daily recognition, and more seasoned employees don’t need daily credit, and every few days will do. 

Regularly recognizing employees provides an impressive ROI to employers. 

Recognition Improves Flow and Employee Engagement

Regularly recognized employees report higher instances of flow and higher rates of engagement. Engaged employees perform at higher levels and have greater success in their positions. 

Engaged employees are advocates for their employers in the community. They have greater loyalty, lower turnover, and terrific job satisfaction. Engaged employees save their employers money with their productivity.

Raises Production 

Humans love praise. When employees are praised, they are much more likely to repeat the behavior. Acknowledging employees for their dedication, persistence, hard work, and dependability improves focus. 

Recognition for the right things drives production because employees are more engaged and because they know which tasks are the most critical to their team or employer. Recognition both engages and educates employees.

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Builds Connection

The very act of expressing gratitude changes both the giver and receiver. It builds a bridge between them that creates a greater connection. Employees need to feel a part of a team and peer recognition is especially helpful in building team connections. 

Lowers Attrition

Engaged, connected, and productive employees are far less likely to leave than unengaged employees. Frequent personal recognition lowers attrition drastically. Lack of gratitude by their manager is one common reason employees cite for leaving. Other related reasons include under-appreciation, underutilization, and feeling taken for granted. 

Recognition can help solve each of these issues. 

Next Steps to Implementing Your Employee Recognition Program

If you are ready to add rocket power to your employee recognition program, you should have a short consultation with a Thanks recognition specialist. Click on the button below to schedule a demo and find out how the Thanks platform supports employee recognition. A specialist can help guide you through the setup so you can improve your recognition culture and involve more employees.

About Thanks

Thanks is a leading provider of a recognition-based platform that increases communication, builds teamwork, and makes recognition a part of company culture. Fast, easy and simple Thanks makes it easy to bring data-driven employee recognition to your entire organization. O.C. Tanner purchased the Thanks platform in 2019 to fulfill the recognition needs of smaller businesses. 

Thanks customers benefit from the same decades of research in employee motivation and company culture that O.C. Tanner enterprise clients enjoy, but in a product that is geared for fast, easy and simple deployment. Whether you’re starting a recognition program or improving and expanding on what you already have, Thanks has everything you need to engage your people with effective, scalable recognition.