Just 15 per cent of companies incorporate emotional or personalised gestures that truly resonate with employees, finds report
Despite increased awareness of the importance of employee engagement, most employers are still missing the mark when it comes to effective rewards and recognition programs, according to a report.
Overall, 66 per cent of companies rely on financial incentives, yet fewer than 15 per cent incorporate emotional or personalised gestures that truly resonate with employees, notes Vantage Circle, a provider of employee recognition and rewards platforms.
“Right now, a lot of rewards and recognition is really focused still on the reward side,” says John Land, chief advocacy officer at the company, in conversation with Canadian HR Reporter. “Most companies are still doing service awards—five, 10, 15, 20 years. What we’re seeing, though, is that that isn’t enough.”
Land warns that incentives such as annual or quarterly bonuses are too infrequent and treat employees as “workers, not as human beings.”
“The frequency doesn’t align with the expectations of people … We’re missing this idea of connecting people as people.”
Recognition—not pay raises—is the missing link in employee engagement, according to one expert.
High-frequency, low-cost recognition
Land emphasises that financial rewards are not enough, especially in today’s uncertain economic climate.
“Even when we’re in boom times, you can’t give enough recognition through money. You have to look to other things to help drive and keep people feeling attached to the organisation,” he says.
He advocates for high-frequency, low-cost recognition—such as peer acknowledgements and real-time feedback—which are particularly valued by younger generations in the workforce. “What employees want, more than anything, is just to feel seen and be recognised for the work they do,” Land says.
The best way to go is to “democratise” the process of giving recognition, he says.
Land notes that recognition should not be limited to top-down gestures from senior leaders but be encouraged peer-to-peer and from the bottom up.
“People like getting recognised and thank-yous from their peers almost as much as they like getting it from their managers.”
This is important as “managers can’t see everything,” he says.
Employers might want to re-evaluate their employee recognition and feedback mechanisms as workers are finding them uber important in the conduct of their work, according to one expert.
Consequences of missing the mark
Land cautions that organisations that fail to foster meaningful recognition risk disengaged employees who merely “check in” without contributing to innovation or growth.
In contrast, those who build cultures of appreciation and psychological safety are rewarded with higher retention, engagement, and productivity.
“If you’re driving a culture of appreciation through modern recognition, you’re going to attract and retain your talent for longer…
“It’s not just compensation that’s driving people to be at an organisation,” he concludes.
Kristen McGill, chief people officer at ZayZoon, previously told Canadian HR Reporter that “there's more desire from these newer generations of the workforce to have more meaning behind their work [and] they're also seeking more meaningful recognition.” She adds that personalization is key to a successful rewards and recognition program.
