Why Employee Reward And Recognition Is Important + 5 Ideas To Get You Started

Whilst reward and recognition may be a grey area for many businesses, it is one of the key components of performance management, a tangible system used by HR departments to track performance, help employees progress, and increase satisfaction at work. 

And the biggest aspect of performance management is actually managing performance, something many bosses succeed at. But the problem comes when they focus solely on ensuring their employees are working hard and performing up to standard but fail to recognise and reward their employees for doing a good job. 

The thought of rewarding for many managers (outside of general promotions and salary increases) is a strange concept. 

Why should you have to recognise and reward employees to do what they’re being paid to do? Won't that create a culture where employees become entitled or even stagnant in their work because their manager is easily pleased? Actually, it's quite the opposite. 

Reverse psychology is a tactic used by teachers, bosses, parents, and anyone who has authority over another person. And whilst it may produce results for a time, it has the same inevitable effect as the micromanager or the totalitarian leader, engagement drops and disrespect rises. Whilst managers need to manage and have a sense of authority over their staff, managers also need to recognise that their staff are adults who need to be communicated to properly and with respect. 

So if you see your employee doing a good job, it should be the natural reaction to tell them. 

REWARD AND RECOGNITION MOTIVATES EMPLOYEES

Whilst some managers may believe that giving employees the nod of appreciation may cause them to stop working, it actually does the opposite. 

Zippia reports that 80% of employees say they’re motivated to work harder when they’re recognised for their work by their superiors. Recognition is the spark that ignites motivation. 

Being told you’re doing a good job makes you feel more confident that you’re doing a good job. Feeling confident about your work increases morale, ambition, and a sense of purpose. 

Employees are human, and most humans doubt themselves. They doubt whether they’re doing enough, if they’re talented enough, or if they’re suitable for the job they’re doing. When you have a culture built upon acknowledging employees for their dedication, skill, or even attitude, you instil in them that they are capable and are a good person for the job.

Before they even have a chance to reflect on the company itself and their loyalty to it (something we’ll get onto) they have a new confidence in their role which will naturally bring about loyalty to their role and a deep desire to better themselves, work harder and achieve their goals. 

REWARD AND RECOGNITION MAKES EMPLOYEES FEEL VALUED

Employees aren’t just numbers or cogs in a machine; they are vital to a business’s success – something any good manager will recognise. 

And these good managers won’t just recognise it internally, they will recognise it externally in the way they reward and communicate with their employees. External recognition communicates explicitly to not just individual people but to the entire culture that everyone is a valued member who contributes to the overall success of the company.

When an employee feels valued, it translates to a sense of belonging, commitment, and pride in their work and the company they work for. You want your employees to feel valued, know their role matters and that their contributions make a difference. Whether they’re a Senior Financial Analyst, or they’re an Assistant Administrator, if you want to build a company that has high retention, plenty of progression, and soaring productivity, start by making people feel like valued individuals. 

REWARD AND RECOGNITION IMPROVES EMPLOYEE-MANAGER RELATIONSHIP

If you want to be a successful manager with a successful team, you need to have a successful relationship with each person you manage. Employee-manager relationships can develop in various ways such as 1-1s and regular team socials, but they also develop when you give your employee credit when credit is due. 

When a manager genuinely acknowledges an employee's contribution, it naturally encourages trust, loyalty, and open communication. 

PRACTICAL IDEAS FOR EMPLOYEE REWARD AND RECOGNITION

TALK ABOUT SUCCESSES IN TEAM MEETINGS

Allocate a segment in team meetings to acknowledge hard work, either to a certain team, or an individual. 

CONDUCT EMPLOYEE OF THE MONTH

You could even award this with a voucher or a lunch.

END-OF-QUARTER CELEBRATIONS

Whether this is an office party, a team meal, or a day out with activities

INVEST IN FURTHER EDUCATION

Give employees who are looking to progress a certain skill or step into a particular role a chance to study or acquire a certification.

BIRTHDAY/ WORK ANNIVERSARY CELEBRATIONS

Could be something as simple as buying a balloon and a handwritten card.

- Written by Oliver Howson

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