The Importance of Employee Recognition: Low Cost, High Impact
The following contribution is from Gallup, a leading global survey firm in both politics and business.
Highlights
Top performers need to know their efforts are recognized and valued.
Employee recognition isn’t universal.
Money isn’t the only form of recognition, nor even the primary one.
In the current war for talent, organizations and leaders are looking for strategies to attract and retain their top performers, while increasing organic growth and employee productivity.
From offering new benefits to designing flexible workplaces, companies’ efforts to optimize the work environment are stronger than ever.
However, in their search for new ideas and approaches, organizations may be overlooking one of the easiest strategies to execute: employee recognition.
According to a Gallup analysis, only one in three workers in the U.S.
strongly agree that they have received recognition or praise for good work in the past seven days.
In any company, it’s not uncommon for employees to feel their best efforts are consistently ignored.
Furthermore, employees who don’t feel adequately recognized are twice as likely to quit in the next year.
This element of engagement and performance could be one of the biggest missed opportunities for leaders and managers.
Workplace recognition motivates, provides a sense of accomplishment, and makes employees feel valued for their work.
Recognition not only boosts individual employee engagement but has also been shown to increase productivity and company loyalty, resulting in higher retention.
In addition to communicating appreciation and motivating the recognized employee, the act of recognition also sends messages to other employees about what success means.
In this way, recognition is both a personal reward tool and an opportunity to reinforce the organization’s desired culture to other employees.
Individual Recognition
Gallup data reveals that the most effective recognition is honest, authentic, and personalized, based on how each employee wishes to be recognized.
Recognizing employees’ best work can be a cost-effective initiative; it can be something as simple as a personal note or a thank-you card.
But the key is knowing what makes it meaningful and memorable for the employee, and who does it. Keep these recognition ideas in mind the next time you praise a colleague.
In a recent Gallup survey on the workplace, employees were asked to recall who gave them the most meaningful and memorable recognition. The data revealed that the most memorable recognition most often comes from the employee’s manager (28%), followed by a senior leader or CEO (24%), the manager’s manager (12%), a customer (10%), and peers (9%). Notably, 17% cited «other» as the source of their most memorable recognition.
What’s most surprising about these findings?
Nearly a quarter said the most memorable recognition comes from a senior leader or CEO.
Employees will remember personal comments from the CEO; even a small gesture of appreciation from a senior manager can make a positive impression on an employee.
In fact, recognition from a CEO could become a career achievement.
When asked which types of recognition were most memorable, respondents highlighted six methods in particular, and money isn’t the only (or even the primary) form of recognition:
– Public recognition or recognition through an award, certificate, or commendation
– Private recognition from a boss, peer, or client
– Receiving or achieving a high level of achievement through evaluations or reviews
– Promotion or increase in scope of work or responsibility to demonstrate trust
– Monetary reward such as a trip, award, or pay raise
Personal satisfaction or job pride
It’s critical for leaders and managers to keep these examples of employee recognition in mind when recognizing the successes or achievements of their team members. Recognition from All Angles
The best managers foster an environment conducive to recognition, with praise coming from all walks of life and everyone being aware of how others like to receive recognition.
This type of feedback to employees should be frequent (Gallup recommends every seven days) and timely to ensure the employee understands the significance of the recent achievement and reinforces company values.
Recognition criteria should be aligned with the company’s purpose, brand, and culture, and reflect its aspirational identity to inspire others.
Rewarding employees who don’t perform well could negatively impact the motivation of high-performing employees. Therefore, companies need to set specific standards for awards to avoid any backlash.
Good managers know that there is never too much recognition, as long as it is honest and deserved.
Recognizing an employee’s best work goes a long way toward making them feel valued and can lead to other desirable workplace outcomes.
Do your metrics anger employees? Or do they motivate them?
This contribution also corresponds to the Gallup website.
By Mike McDonald
Jessica Buono contributed to this article.
Fear. Anxiety. Stress. Anger. Not exactly the emotions we hope to provoke in our employees, are they?
In any case, it’s not exactly the key to motivational management.
Unfortunately, those are the emotions many people feel when it comes time to talk about their work metrics. Employees dread the idea of their manager reducing them to a simple number. A number that may be accurate and important, but that doesn’t accurately reflect everything they contribute to their work.
And no matter how subtly everything is presented, people become defensive and discouraged.
Why?
«The mere act of measuring communicates distrust, power, control, and dehumanization.» That’s what a fellow student said when the topic of performance measurement came up in my PhD class.
He was right. And he was also wrong.
He was right because measurement can be dehumanizing. Managers, intentionally or not, end up using measurement negatively to try to motivate people. But it doesn’t work.
Instead, it creates fear, stress, anxiety, and anger; it makes them feel like they’re never good enough.
He was wrong because measurement itself doesn’t require those effects. And employees want measurement.
Measurement is a positive pillar for developing employees, holding them accountable and providing appropriate and specific recognition—three performance goals employees say they need from their manager and the organization, according to Gallup’s «Re-Engineering Performance Management» report.
Measurement is also key to helping your employees become stars; the key to helping you create them. Think of any famous, award-winning movie star or athlete: how did they earn those titles?
Someone measured their performance. Then he recognized them for it. And he repeated it.
According to a Gallup study, employees who strongly agree that their manager holds them accountable for their performance are 2.5 times more likely to be engaged at work. And employees who feel adequately recognized are half as likely to announce their resignation in the next year than those who don’t.
A well-used measure motivates.
An incorrect measure shifts employees’ mindset away from improving their performance and toward whether you, their manager, are trustworthy and qualified to assess their performance.
I know it’s tempting to think that the typical management mistakes that generate employee anxiety aren’t made; that the measures should be accurate if the intentions are good and the recognition is given often enough. But there are two clear signs that this isn’t the case:
- Only three in 10 employees in the U.S. strongly agree that in the past seven days they have received recognition or praise for good work.
- Only one in five employees strongly agree that their performance is managed in a way that motivates them to do exceptional work.
If you measure to motivate, not to control, you should have no problem providing meaningful and targeted recognition regularly.
There’s no other option. We need to measure performance. But we need fair measurements that truly reflect the person, not just the outcome.
We need ways to use measurement to motivate positively, not cause heart attacks.
So how do you know if your measurements motivate your employees or make them angry? Here are six questions to ask yourself:
- Are you measuring everything? We hope not. Today’s technology, the emphasis on lean management, and other systematic approaches to performance make it possible to generate metrics for all kinds of measurements. But don’t fall into the trap of assuming that just because you can measure something means you should.
- Can your employees directly influence the work you’re measuring? If employees can’t connect performance metrics to concrete actions they can take to improve, then discard them. Employees won’t accept a metric as fair if they don’t believe they can influence it. Allowing employees to participate in goal setting is a great way to give them some control and accountability over their results.
- Does what you measure focus on each individual’s greatest skills and contributions? You can generate strong buy-in with a measurement if it aligns with your employees’ strengths. Consider each team member’s unique abilities, responsibilities, knowledge, experience, and aspirations—there’s no one-size-fits-all solution, right?
- Do your metrics conversations focus on the future and growth? Managers need to realize that employees can’t change the past, so focusing on past experiences isn’t productive without discussing a clear path forward. A «look back to excel in the future» mentality is important because it allows for both constructive criticism and encouragement.
- Are metrics frequently mentioned in your conversations? Performance metrics tend to feel unfair because they’re usually only discussed once a year. A lot can change over the course of a year, even in a few months: new tasks or projects arise, or a person’s family life may require more attention during a season.
Addressing metrics more frequently reduces fear, allows managers to focus on recent achievements, and introduces necessary performance corrections before problems become unmanageable.
- Do your measurements tell a story? Do the numbers you collect have an accompanying narrative? Two people may achieve the same results based on key performance metrics, but they may have different contexts, have a different impact on their colleagues, or provide different value to internal or external customers.
The conversation about measurements and your employees’ goals is as important, if not more important, than the actual numbers. So, stop focusing on improving the numbers and focus on the meaning of that improvement.
Motivate your team to achieve great things through measurement.
Reflecting on the six questions above will allow you to significantly influence your team’s emotional experience with measurements.
This doesn’t mean you’ll find a way for everyone to be on top of their game and excel in their role; some might not be.
But if you consider the whole person, regardless of whether the metrics are excellent or not, both will feel satisfied with the outcome. And perhaps they’ll be on the path to finding another position where a person who previously wasn’t able to excel can excel.
Properly used metrics can reduce your employees’ negative emotions.
But most importantly, they can help you create a team of all-stars: people motivated to achieve great things, not just driven to improve a little.
The Power of Recognition: Why Managers Should Celebrate Their Teams
The following contribution is from the G.Q.SHORT portal, which defines itself as: We help you create, customize, develop, and deliver recognition programs and moments for your people.
Written by: C.A. Short Company
For over 80 years, C.A. Short Company has been an industry leader in employee engagement and recognition. Through our People Are Everything™ recognition platform and engagement solutions, we help organizations inspire, reward, and retain their most valuable asset: their people.
Amid the whirlwind of deadlines, meetings, and quarterly goals, one of a manager’s most powerful tools is often overlooked: recognition.
While it may seem like a «nice-to-have» in the grand scheme of things, employee recognition is actually a critical factor in performance, retention, and job satisfaction.
The Recognition Gap in Today’s Workplace
Despite its importance, recognition remains shockingly lacking in many organizations.
Studies consistently show that most employees feel undervalued at work, with many reporting they haven’t received meaningful recognition in months or even years.
This creates a recognition gap that directly impacts everything from productivity to employee turnover.
The problem isn’t that managers don’t care about their teams, but rather that recognition is often hindered by competing priorities and busy schedules.
But this oversight comes at a significant cost to both individual employees and the organization’s success.
The Dual Power of Monetary and Non-Monetary Recognition
Recognition comes in a variety of forms, but generally falls into two categories: monetary and non-monetary.
Understanding the unique benefits of each and how they work together is essential to creating a comprehensive recognition strategy that truly motivates and retains talent.
The Strategic Advantage of Points-Based Monetary Recognition
Points-based recognition systems represent a modern evolution of monetary rewards, combining the tangible value of financial recognition with the flexibility and appeal of gamification.
In these systems, employees earn points for various achievements, behaviors, and contributions, which they can then redeem for rewards ranging from gift cards and products to experiences and time off.
Granular Recognition Opportunities: Unlike traditional bonuses, which typically reward large achievements, point systems allow managers to recognize small, daily contributions. An employee can earn points for helping a colleague, suggesting a process improvement, or consistently meeting deadlines. This granularity makes recognition more frequent and accessible.
Employee Choice and Autonomy: Point systems allow employees to control how they receive their rewards. One team member may save points for a large gift card, while another prefers to redeem smaller rewards more frequently. This option increases the perceived value of recognition, as employees select the rewards that truly matter to them.
Transparent Value System: Points create a clear, quantifiable value for different types of contributions. Employees can see exactly how their efforts translate into rewards, creating a transparency that traditional recognition often lacks. This visibility helps employees understand the organization’s priorities and adjust their efforts accordingly.
Cumulative Impact: Points accumulate over time, allowing employees to work toward greater rewards while also receiving immediate recognition. This builds short-term motivation and long-term engagement, as employees can see how their efforts translate into meaningful rewards.
Budget Predictability: For organizations, point systems provide better budget control than traditional bonuses. Companies can establish point values and reward catalogs that fit their recognition
