Employee Rewards and Recognitions (R&R)

Think about the last time you put your heart and soul into a project or presentation, molded it into something you were proud of, and absolutely nailed the execution. That feeling of accomplishment is uplifting, but it’s multiplied exponentially when others take notice. The simple act of acknowledging achievement is a major boost for employee morale and performance. And that’s why employee recognition is so critical.

“People work for money but go the extra mile for recognition, praise, and rewards.” –Dale Carnegie

Employee rewards and recognition have become critical components of every successful business in today’s world. Its unique way of adding value to your employees’ achievements is what makes it popular. The concept of giving out accolades and rewards has been there for ages. When an individual is acknowledged for their good deed, they feel elated. This inspires them to keep getting better and binds them to greater goals.

What is Employee Recognition?

Employee recognition is the open acknowledgement and display of satisfaction with an employee’s behavior or achievement. It is used by several organizations to express appreciation, motivate employees, and reinforce and affirm commendable, desired behavior. Employee Rewards and Recognition popularly referred to by Human Resources as ‘R&R’ encompasses all the ways an organization shows its appreciation for employees’ contributions. It can take many forms and may or may not involve monetary compensation. Incorporating a rewards and recognition program helps increase employee engagement, leading to many benefits for the company, like increased productivity and retention.

However, despite all these differences, both rewards and recognition form a potent combo. A thoughtful reward or recognition presented properly at the right time can help in establishing employee engagement in an organization. Implementing a rewards and recognition program aids in boosting employee engagement, which has numerous advantages for the business, including greater productivity and staff retention.?

“An employee’s motivation is a direct result of the sum of interactions with his or her manager.” –Dr. Bob Nelson

The various types of ‘R&R’ include:

Micro Recognition: it is one of the ways to support organizational values on a regular basis and make employees feel valued. This ‘R&R’ does not require lots of time and resources. It could be in forms like appreciating and providing feedback immediately in response to a task or behavior.

Formal recognition: this, on the other hand, is a structured program and process. It has defined processes for how to select and nominate someone for an award given over time in that organization. Typically, these programs have an award ceremony to publicly recognize employees deserving of it.

Informal recognition: this ‘R&R’ is given to individuals or teams for progress attained in relation to a set milestone, when they achieve goals, or when they complete projects. This is also an informal means that can come in the form of a pizza party, lunch paid for etc.

Peer-to-Peer Recognition: here, team members feel empowered as their efforts are recognized by one another daily. They feel a sense of belonging to the organization and are motivated to perform their best.

Bonuses are one of the most popular types of employee recognition. They range from small to large, depending upon the contribution and task accomplished by the employee as well as the size of the organization.

Benefits of Employee Rewards and Recognition

Here are some reasons why you should build the best employee recognition program:

Retention: Satisfied, engaged employees are more likely to stick around. One survey of HR professionals showed that 68% of them said that their recognition programs positively impact employee retention. That’s because employees want to work for companies that value them and show that appreciation with tangible actions. Incorporating rewards and recognition is the kind of action that will retain more employees, contributing to the long-term success and growth of the company.

Productivity: Employees are more engaged at work when their successes are recognized, either verbally or with a reward. Teams of workers who are trying to reach goals are more productive, as they become more efficient with their time and energy to reach those goals and see actual results. When employees are more invested in what they’re doing and take pride in it, they’re empowered to take control of their tasks and are more likely to complete them on time. They’ll make sure that the work is high-quality when they’re being measured against other employees or working toward a reward.

Morale: When managers understand the true purpose of employee recognition, it improves employee morale on an individual level. High morale inspires greater productivity, creativity, and overall satisfaction. Rewards programs support feelings of friendly rivalry among workers. Talents will start to compare their performance to each other and strive to do better next time. When they’re finally at the top of the list, they’ll feel accomplished and everyone on the team will want to get there.

Purpose: Recognizing employees’ work and their contributions encourages a sense of purpose. It helps employees understand how their work ties to the company values and how their efforts matter. Frequent and instant recognition reminds everyone that they’re all working toward a shared goal.

Offering recognition and rewards for employee performance will boost motivation so workers stay on track and maintain a positive attitude. These programs encourage collaboration and give employees something to work toward. When they receive a reward for doing something right, they’ll be more motivated to do it again and again.

Conclusion

Recognition helps employees see that their company values them and their contributions to the success of their team and the company as a whole. This is particularly key when organizations grow or change, it helps employees build a sense of security in their value to the company, motivating them to continue great work. It encourages regularly sharing news about how the company is striving to reach its mission and explains how individual employee goals relate to that vision.?

References and Insights:

• https://www.crewhu.com/blog/top-6-reasons-to-implement-a-rewards-and-recognition-program
• https://www.springworks.in/blog/employee-rewards-and-recognition-ideas/
• https://www.quantumworkplace.com/future-of-work/importance-of-employee-recognition
• https://www.greatplacetowork.com/resources/blog/creating-a-culture-of-recognition