On 7th July every year, national ‘Thank you day’ triggers gestures of gratitude and appreciation. And many organisations also take this opportunity to give their workforce a big thank you.
However, this could leave your employees feeling a little deflated if you’re not also recognising hard work, effort and commitment all year round. Reward and recognition is a key factor in your employee engagement strategy and works best when built into the fabric of your people practices.
So, in this article, we show you how to recognise and reward employees in your workplace authentically, build traction with reward and recognition initiatives and embed these into your company culture in a brilliantly positive way.
We look at:
- What we mean by ‘recognise and reward employees’
- The benefits of reward and recognition
- How to recognise and reward employees uniquely
- Approaching reward and recognition strategically
- A real life example of authentic reward in the workplace
- Some ways to recognise and reward employees in the workplace
- Key things to remember when recognising and rewarding employees
- Advice from our Organisational Development Manager, Ruth Wragg-Jones
What we mean by ‘recognise and reward employees’
The definition of recognition is to ‘show admiration and respect for achievements’. And, subsequently, reward is the act of giving something in return for those achievements.
Whilst employees are hired to do a job, and then paid in return, this is an expected contractual transaction. When employees take their job one step further, we can recognise this and possibly reward it. This may involve a simple ‘well done’ or ‘thank you’ (recognition) or it may warrant a gesture, such as a bonus (reward).
You might choose to recognise and reward employees in your business because they have:
- achieved more than they were targeted to do
- shown initiative and worked proactively, not just within the remit of their role
- demonstrated considerable improvement in an area they’ve previously struggled in
- effectively collaborated with others
- done something that is an outstanding example of living and breathing your values
- received positive feedback from clients, customers or colleagues
- demonstrated resilience and adaptability to overcome a challenge
The benefits when business’s recognise and reward employees
Let’s take a look at some of the benefits of employee recognition and reward:
Increased motivation
40% of workers would put more energy into their jobs if they were recognised on a regular basis.
Harvard Business Review
Employees who are told they are doing a great job and rewarded for this will want to keep doing it. Praise from those around you – line managers, leaders or peers – is a powerful motivator to keep striving for more at work.
Company loyalty
Employees who don’t feel valued are twice as likely to say they will leave their company within the next 12 months.
Gallup
On the other hand, employees who receive regular recognition or rewards for their work are more likely to stay with their employer. Think of it like a supermarket – if you’re shopping somewhere that offers you a great customer experience, along with money off vouchers and emails telling you they value you as a loyal customer, you might be unmotivated to consider shopping elsewhere.
Better products or service provision
Companies that offer employee recognition programmes are 12 times more likely to achieve their business goals than their competitors.
Deloitte
All the studies show that employees who feel valued as a result of their hard work and commitment being recognised will do a better job. Doing a better job means that they performance better, which is an essential ingredient in achieving business goals, for example through better service delivery or production of goods.
People have different preferences when it comes to reward and recognition
Recognising this is critical. While there will be similarities in tastes and interests, every individual in an organisation is their own person. They will value different things. If we truly want to recognise and reward employees in ways that will resonate with them and show them they are valued we need to acknowledge this diversity of thought.
As outlined in this Forbes article, people are ultimately motivated differently. While some will appreciate a financial incentive or a promotion, others will be driven by motivating factors such as the need for adventure (and may prefer a team building day out rather than a gift voucher, for instance).
Employees will also have different preferences when it comes to how widely their achievement is shared. Some may relish the thought of being included in a company newsletter or have a starring role in a social media post. Others might not appreciate the attention this brings.
Understanding your workforce as individuals is key. Managers who hold regular, meaningful 1:1s with their employees will be able to establish this relatively quickly in their employment relationship.
Start with a strategy
Rewarding inconsistently can have a negative effect. If one colleague has been recognised for something, but another’s outstanding performance has gone unnoticed, this can cause dissatisfaction.
Approaching reward and recognition in a considered way is key to making sure everyone is rewarded equally. Rewarding ‘equally’ doesn’t mean that the reward is the same for everyone. Different contributions will merit different rewards. However, it could be unfair if two employees who have exceeded their targets receive very different rewards.
Let’s take a look at a few areas that should be considered during the strategy building phase of your approach to recognise and reward employees authentically.
A framework to recognise and reward employees
Having a structured approach to reward in particular can help a business navigate decision making in this area, but it can also incentivise employees, giving them something to strive for and encouraging associated behaviours.
A framework should be based around organisational goals and focus on celebrating activities that takes a company closer to achieving its strategic goals, and also championing achievements that align with your values.
It’s also important to remember that different types of achievements warrant different levels of recognition. A metaphorical high five may be appropriate for meeting a tough deadline. Securing a high value contract that contributes significantly to company growth may deserve a bigger reward.
Although these can be considered on a case by case basis, it’s important to have a general understanding of how reward and recognition will be applied to ensure consistency and transparency in your approach.
Who should recognise great work
Reward and recognition isn’t just something done by management. A Gallup study found that 24% of employees said the most memorable recognition comes from leaders of the organisation. Having a member of the leadership team acknowledge an employee’s effort and dedication can be extremely powerful. Employees know that leaders are busy being pulled in many directions. So, when they take the time to stop and make a conscious effort to recognise a member of the workforce, this goes far.
Cadence and timeliness
Research tells us that 82% of workers feel as though their managers don’t recognise and reward their work often enough.
As part of a strategy to recognise and reward employees, you may wish to specify how regularly you reward employees. An example of this is identifying a top performer every quarter and at the conclusion of each project.
However, it’s critical that recognition happens swiftly. If an employee’s achievement isn’t acknowledged for several weeks after the event, they may feel as though it has been overlooked. This means that while a structured cadence works for certain things, regular (and in the moment) recognition is key to authenticity and employee morale. All leaders and managers should be on the same page when it comes to being on the look out for great work, commitment or examples of going above and beyond.
How do people want to be rewarded?
Start by asking your workforce. One suggestion is to have flexible rewards so individuals can pick and choose those that are valuable to them.
Some organisations consider offering products or services that they produce or provide to their employees. This can be great but there may be some sections of the workforce that won’t benefit.
Picture this. You’re a premium tyre manufacturer. Your tyres cost hundreds of pounds each and they’re only purchased by those in the 10% wealth bracket. You decide a reward would be to offer a discount on your product – or even a free tyre to the top achievers. However, one slight problem – your top achiever doesn’t own a car.
While offering a product or service you provide can be a fantastic way to give back to your team, it’s not always what they want.
When to recognise great work on a 1:1 basis
As mentioned above, some employees simply don’t like being the centre of attention. This unwanted limelight can bring feelings of anxiety and sometimes even imposter syndrome. This can in particular arise for neurodivergent employees. While you might view a shoutout during a whole company meeting as a brilliant accolade, it may have the opposite effect for the individual. And, who wants to have the feeling of satisfaction after a project done well tinged by the dread of how they will be recognised?
By getting to know how your employees think and feel, you will know when to recognise their accomplishments in a 1:1 setting. And, try not to perceive this as a lesser celebration. Often employees who would prefer not to be publicly celebrated find this incredibly impactful. (You can always check in with them to see if they’d also be happy for you to celebrate their achievements more widely, too).
Authentic recognition and reward in practice
Tateossian London, a Fitzgerald client, was founded by Robert Tateossian in 1990 and is renowned for its luxury jewellery and accessories, including necklaces, rings, bracelets, and cufflinks. This global brand exemplifies authentic employee recognition by offering rewards that resonate with its identity and cater to diverse preferences.
Employees who go above and beyond—whether by working late or assisting during weekends—receive dinner or lunch as a small gesture of appreciation for their flexibility. For a more personalised touch, standout contributions are rewarded with an Amazon voucher or a piece of jewellery from Tateossian’s exquisite collection. This approach not only clearly demonstrates the company’s appreciation but also recognises individual preferences, making the acknowledgement of hard work both meaningful and relevant.
Examples of how to recognise and reward employees authentically
These are just a few rewards and recognition ideas. However, remember to consider whether these initiatives will resonate with your people, culture and values before pressing ‘go’. Ultimately, often a combination of approaches is the most effective.
Employee reflection and sharing
Petra Kolber is quoted as saying “As humans, we have a tendency to minimise our accomplishments and maximise our shortcomings”. Sometimes in order to be able to recognise and reward employees, we need to be able to understand all the great work they’re doing that often goes under the radar.
Help employees to feel empowered about celebrating their successes. Create an environment for them whereby it doesn’t feel as though they are blowing their own trumpet, yet simply sharing their great work with their manager. From there, we can recognise and reward accordingly.
Direct praise
Arguably nothing is more powerful than being told you’ve done a great job. Direct praise is an example of really meaningful employee recognition. When a leader or manager does this on a 1:1 basis, employees will feel special as a result of the time that’s been carved out for them.
Public recognition
This might look like a ‘well done’ in a team meeting, in a company newsletter or even social media. Celebrating an individual’s achievements more widely can help them to feel really proud of their achievements. It can also make employees feel a strong sense of satisfaction and organisational belonging.
Rewarding achievements with time
Some employees may not be motivated by financial rewards. Take a full time working parent, who wishes they could collect their children from school from time to time. Giving them an afternoon off to do this as reward for completing a significant project can be a particularly meaningful reward.
Investing in growth
You can recognise and reward employees by providing development opportunities. This is another way of telling your employees they are doing a fantastic job. This might be in the form of paid time to attend a conference or training session. It could even include things like mentoring by a senior leader or a formal qualification. Recognising an individual’s abilities (and potential) can be a great way to reward someone.
Peer recognition
Getting feedback from your peers and colleagues can also be really impactful. Peers often see the challenges individuals overcome in order to achieve success in a more candid way than managers or leaders. Give your employees a way to share their recognition and thanks. For example, invest in an HR information system that allows employees to give each other kudos on a regular basis.
Financial motivation
Another way to recognise and reward employees, showing them that you value their hard work, is through financial incentives such as bonuses. This type of initiative benefits a more structured approach to provide clarity to employees about how and when they may receive a bonus. Highlighting that one-off bonuses are discretionary rather than contractual will also remove any confusion about money that’s received.
Key things to remember when you recognise and reward employees
Make it personal
Rewards and recognition are most authentic when they come from an individual. Sending out a ‘thank you’ as part of a company newsletter, which is circulated by the internal communications team can feel generic and impersonal.
Whereas a specific shout out from a leader or manager (virtually or in person) that explains why the hard work means so much to the company, can resonate considerably more.
Make it timely
As mentioned above, it’s important that recognition is given at the time. Waiting for a quarterly meeting to thank someone for their work may lead to the employee feeling forgotten about.
People managers and leaders may need to reframe their perception of recognition and reward. Rather than thinking about it as an extra initiative, bake it into your people practices.
Make it fair
If one team within an organisation is rewarded more frequently and generously than another, this is a sure fire way to create friction and negative sub-cultures within the workforce. Getting everyone in the business on the same page when you recognise and reward employees is key to ensuring consistency of approach.
Recognise and reward employees in line with your culture and values
One of the most important, if not the most important, area to consider when making your approach authentic is asking yourself the question – does this resonate with our culture and values? If being a customer-centric organisation is one of your values, recognise behaviours and achievements that promote putting customers first. Reward employees in ways that mean something to both them and your business. If you’re a close-knit team, reward with shared activities for shared achievements, for instance. Ensure everything about your approach to recognise and reward employees reflects your company and your people.
The importance of authentic reward and recogition, advice from our Organisational Development Manager.
Bersin and associates identified over 10 years ago that companies that prioritise recognition reduce voluntary turnover by up to 30%. The good news is that in order to have impact and help your team members to feel appreciated, it doesn’t mean you have to implement difficult, time consuming and disingenuous recognition schemes. Simply saying thank you or giving a small gift that has meaning to your team member at the right time can have more impact than a full scale company award ceremony.
Ruth Wragg-Jones
How we can help you to recognise and reward employees in your business
Whether it’s understanding the status quo of employee satisfaction when it comes to reward and recognition or helping you to design a reward and recognition strategy and think of authentic approaches for your organisation, we can help.
Reach out to our team of friendly professionals. We can chat through how we can help you to recognise and reward employees authentically. Email us at office@fitzgeraldhr.co.uk or call us on 0330 223 5253.
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