Employee Recognition Programs

Employee recognition awards represent an effective management tool that is often over-looked in the day to day operation of a business. Everything about employment is tough these days. Choosing the right person. The unpredictability of economic and competitive conditions and how they might prompt reductions in staff. Not the least of employment problems is holding on to really productive employees who, frankly, are just as employable elsewhere. The term human resources has never been more profound, and its’ significance in a global economy will only grow.

What makes the matter more delicate is the awkwardness of focusing on tenure in a time of frequent lay-offs. Employees of a company that has suffered a lay-off may dismiss a program that cites the few employees who lasted decades with the firm. Tenure and performance are not the same thing.

Nonetheless, employees make career choices based on their perceptions and intuitions. A 2007 Gallup poll reported that 61% of employee surveyed reported that they hadn't received any meaningful positive attention in the past year. Another study indicated that 53% of employee respondents left an employer due to lack of incentives or lack of recognition and praise. Clearly, utilizing employee recognition awards would create a different response to surveys like this.

Failing to recognize employee performance – the dollars and sense of it

A human resources website called HR.com estimates it costs two to three times more to replace a worker than to retain the employee. Bliss estimates the cost of replacing a departing employee begins at 150% of his or her salary. Do the math: consider the added value of reducing turnover by, say, 25% and putting that savings into revenue producers.

Employee turnover can no longer be viewed as an uncontrollable reality of running a business, flippantly dismissed with statements such as “hey, we can’t do anything about … employees leave and that’s that.” Some organizations have low turnover even in tough economic conditions. Why? Perhaps such firms have analyzed their turnover costs and seen the impact on the bottom line.

How good employee recognition award programs work – can your company do it?

• Employees work best if given concrete goals and objectives that they and their supervisors can both measure and manage. Clear, understandable criteria for recognition are important.


• Understand each employee’s ‘hot buttons.’ What motivates 19-year-old part-timers struggling to pay tuition isn’t what a full-time career track store manager or line manager views as recognition.


• Successful employee recognition programs allow for multiple winners.


• Successful employee recognition awards are often individual surprises rather than multiple awards saved for an announced event. Instead of employees focusing on winning an award, they are focused on just doing well at their jobs.


• All employees at all levels should be recognized for good work, including supervisors and managers.


• Successful employee recognition programs don’t have to be elaborate and complicated to work. Once criteria are set and recognition awards match employee values, administration can and should be simple.


• Versatile employee recognition programs include tangible and intangible awards for all types of employee successes, from concrete and visible contributions to subtle influences on the company’s successes.


• To be effective, acts of employee recognition should come from the managers who hire, fire, appraise, coach, and correct employees on a daily basis. Recognition programs can’t be left to top executives at boring monthly meetings.


• Top executives who offer simple, verbal expressions of gratitude are recognizing employee performance with as much impact as physical rewards offer.

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