How to Recognize and Reward Employee Achievements

Recognizing and rewarding employees’ individual achievements can have profound effects for companies of all sizes. According to Gallup, “[r]ecognition not only boosts individual employee engagement, but it also has been found to increase productivity and loyalty to the company, leading to higher retention.” These are all outcomes that companies should strive to achieve on a consistent basis.

5 Key Steps for Implementing Employee Recognition and Reward Programs

With this in mind, how can companies implement effective employee recognition and reward programs? Here are five key steps in the process:

1. Develop Objective Recognition and Reward Criteria

The first step is to develop objective recognition and reward criteria. While informal recognition by managers and supervisors can be ad hoc, formal recognition and reward programs should have clear guidelines based on measurable performance indicators. These can take many forms, including (but by no means limited to):

• Highest overall performance or output
• Highest level of improvement
• Standout performances that merit special recognition

Regardless of the performance indicators chosen, objectiveness is key. If a company’s recognition and rewards appear to be discriminatory or biased, they can have the opposite of their intended effect.

2. Document the Company’s Recognition and Reward Policies

In this same vein, documentation is also essential. Once a company’s leadership team has developed and approved a recognition and reward program, the next step is to document the program in formal workplace policies.

3. Inform the Company’s Workforce

With a well-documented formal recognition and reward program in place, the next step is to inform the company’s workforce. All employees should be made aware of the program so that they have the opportunity to participate, if desired.

4. Provide Opportunities for Employees to Improve and Stand Out

Equally important is providing opportunities for employees to improve and stand out. Individuals who feel as though they have no chance of receiving recognition or a reward can feel isolated and left behind. Conversely, if they are provided with opportunities to improve and participate in activities that have the potential to receive recognition, they can feel empowered to grow as an employee and enhance their productivity.

5. Have a Transparent Recognition and Reward Process (While Respecting Employees’ Privacy)

Finally, when it comes time to recognize employees’ achievements and issue rewards, the process needs to be transparent. There should be no question that the right people are receiving recognition and rewards based on the company’s written policies. At the same time, however, companies need to keep their employees’ privacy in mind as well. For example, if an employee receives commissions or performance-based compensation, the company may need to be careful to avoid directly or indirectly disclosing the employee’s compensation during an award ceremony or in a company-wide email.

Want to Know More? Contact Us Today

Are you interested in implementing a recognition and reward program at your company? Or, does your company’s recognition and reward program need improvement? If so, we can help. To learn more about what we do, give us a call at 720-452-3300 or tell us how we can help online today.