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Employee recognition and pay for performance are important drivers of motivating employees, increasing engagement, and aiding overall productivity. Those companies that put stock in significant recognition programs tend to experience reduced turnover rates, enhanced job satisfaction, and better team camaraderie. Recognition exceeds the traditional review session or annual gratuity; it instills an atmosphere where efforts are acknowledged and appreciated on an ongoing basis.
The Worth of Recognition
Recognition rewards hard work and success. Appreciated employees will be more loyal to the job and the company. Recognition can range anywhere from an oral approval during team meetings on up to a written note or public recognition of achievements. Regular recognition enables employees to grasp how their job contributes toward company objectives as well as reinforces success-oriented behavior.
Reward Strategies That Work
Rewards for performance are a physical manifestation of recognition. These vary anywhere from cash rewards such as bonuses or profit sharing to intangible rewards such as extra holiday time off, flexible schedules, or professional development opportunities. According to research, customized rewards that show consideration for an individual’s preference as well as their contributions prove more effective than generic methods. Individualized recognition might be skill-building workshops for some workers, for instance, versus experiential rewards such as event tickets or customized gift baskets. Adding such small touches as a New Year’s gift basket can make recognition more personalized as well as relevant.
Matching Rewards with Goals
Integration of a fair reward system has a direct correlation with organizational objectives. Definitive recognition standards give workers an idea of what will be rewarded by particular behavior or achievement. Metrics can be sales achievement, project delivery, innovation contributions, or teamwork. When workers can distinctly establish a correlation between reward and achievement, motivation improves as standards for success become more explicit across teams.
Regularity and Timing
The immediacy of recognition and reward greatly impacts its success. Recognition that takes place immediately reinforces the rewarded behavior, but delays can reduce perceived worth. Regularity is equally important; employees need to perceive that recognition will be fair yet based on real efforts rather than favoritism or publicity. Regular recognition calendars that can coexist with intermittent praise for brilliant performances can cogently offset consistency with real appreciation.
Building a Recognition Culture
Building a recognition culture engages everyone, including leadership and coworkers. Peer recognition programs inspire team members to recognize each other’s efforts toward teamwork and respect. Leaders need to lead by example by modeling recognition behavior so that praise and reward can be made publicly evident and deliberate. Managers can be trained on proper feedback and recognition methods that can make the program stronger so that every employee can feel valued.
Acknowledging and rewarding employees is an investment in people as well as business results. Considerate recognition against specific performance goals and consistent delivery reinforces strength in engagement as well as drives success. Smaller actions, ranging from a personally written note card to a gift basket, convey appreciation as well as foster an energized workforce. For more information, look over the accompanying resource.
