Beyond trinkets and trash

Transforming recognition into a strategic change effort

Recognition programs are getting a face-lift across Canada as organizations acknowledge the need for a more strategic approach to rewards and motivation.

Traditional programs such as service awards at the annual firm dinner, or what has been referred to as trinkets and trash celebrations, fall short of adding value. At the same time, meaningful recognition is a top employee need, employee retention is a top CEO priority, and high employee performance is an over-riding business imperative.

While some organizations are developing innovative programs, many others are not achieving a sufficient return on their investment in recognition programs, or are sending confused messages to the workforce about organization priorities, values and desired employee behaviours. Given the potential of recognition programs to promote high performance and build a desired culture, careful consideration must be given to design and implementation. Here are three tips for building a recognition program that achieves results.

1. Align recognition criteria to the business strategy, culture and other employee programs: Recognition criteria need to be clearly linked to the business strategy and reinforce the desired corporate culture. By defining the appropriate recognition criteria, employees have a clearer understanding of the organization’s priorities and how they can contribute to its success. Recognition criteria should be limited in number but inclusive enough to capture the contribution of all roles in the organization. The question for organizations to ponder in identifying the right criteria is, “What are the employee behaviours that will reinforce our success as a business and differentiate our culture?” For example, an organization that wants to differentiate itself on “service excellence” could include this as one of the recognition criteria.

The next step is to define more specifically the achievements and behaviours that exemplify recognition criteria, such as “service excellence” that goes above and beyond the normal expectations of the job. Defining these exemplary accomplishments in specific terms can take some time and require consultation with both managers and employees. This is a necessary step to ensure criteria are relevant, easily understood and achievable.

Another consideration is whether the criteria should recognize individual or team contribution, or a mix of both. A recognition program that focuses heavily on individual recognition may spur unhealthy competition among employees, when in fact the organization needs to rely on teamwork to succeed.

And, recognition programs should be reinforced and aligned with other employee programs such as performance management to avoid sending mixed messages to employees about what matters to the organization. A recognition program that rewards innovation will be out of alignment with a performance management program that focuses heavily on short-term results and not on building key competencies for the future, such as innovation.

2. Solicit employee opinion in program design and implementation: Front-line employee involvement is important to ensure the program reflects employees’ opinions about what should be recognized within the organization, what type of rewards are most meaningful to them and how the program should be implemented.

Interviews or focus groups in the design stage with employees can help shape the program. Employees will have opinions about the type of rewards that are most meaningful, based on the demographics and diversity of people in the organization. Employee opinion can help to avoid the implementation of recognition and awards that can be perceived as insensitive, such as individual versus team acknowledgement, or a prize or celebration that further stresses rather than supports work-life balance.

Employees can also be used as a sounding board before the program is launched to ensure the program communication and administrative rules (the nomination and selection process), make sense and generate interest. By involving employees, organizations can maximize the chances of success by creating interested stakeholders and ambassadors for the programs.

3. Create a culture of recognition that incorporates formal recognition: A recognition program will have more credibility if recognition is an ingrained part of the culture, starting with senior executives who visibly recognize individual and collective efforts, and create an atmosphere where employees and managers recognize each other on a continuous basis. While tangible recognition in the form of gifts can certainly be a nice extra and a fun way to build spirit, it should never be a substitute for on-going feedback and acknowledgement of work well done — which is what matters most to employees. Providing easy-to-use recognition tools (such as thank you cards) to encourage peer-to-peer recognition and make it easier for managers and team leaders to act, can also help to build a positive culture and desired behaviours.

Recognition should be a spirited process that does not involve onerous demands on those who are either nominating a colleague for recognition or administering the program. A process that involves lengthy descriptions to support nominations will be abandoned as people get caught up in their day–to-day priorities. Strong communication, attractive and easy-to-complete nomination forms that easily guide nominators to showcase the achievements of their nominees, and a streamlined and objective selection process will boost enthusiasm and participation. As much as possible, a formal recognition program should be a seamless component of a positive corporate culture that places a high emphasis on recognition.

Recognition matters to employees. The right recognition program can go a long way to build spirit, satisfaction and high performance. To accomplish this, the program needs to be carefully considered in context of the organization’s unique strategy and values. It must also be an ingrained part of the culture rather than a stand-alone program.

While it takes more thought and involvement at all levels of the organization to implement a recognition program that has a clear sense of purpose and is aligned to both corporate priorities and employee needs, the benefits far outweigh the effort. Which would you choose, trinkets and trash or a strategic change effort?

Sue Nador is a partner with NVision Consulting Ltd. She can be reached at [email protected] or (416) 466-3010.

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