What makes your company a great place to work?
Fifteen years ago, the answer might have been “competitive pay and top-notch benefits.” Don’t get us wrong – these elements are still key to attracting and retaining top talent.
But today’s winning workplaces are driving employee engagement with a simple, psychological key: recognition.
The good news is, building recognition and rewards into your company culture is simple and inexpensive. And with a strategic approach, you can revolutionize retention, employee engagement, and productivity.
Read on, or jump to:
- How recognition and rewards affect employee engagement
- What a recognition and rewards program can do for your company
- 7 features of a recognition and rewards program
Research shows companies with highly engaged employees have 5 times higher shareholder returns over 5 years – and they outperform those with low employee engagement by 202%. With actively disengaged workers costing U.S. businesses up to $500 billion annually, companies can’t afford not to invest in engagement.
The solution? Recognizing and rewarding employee effort. Here are just a few of the stats that prove it:
The #1 reason people leave jobs is limited recognition and praise.
81% of employees work harder when their boss shows appreciation.
41% of companies that use peer-to-peer recognition report seeing increases in customer satisfaction.
50% of employees would stay at their job longer if they felt appreciated.
Ready for higher retention, performance, productivity, ROI, and more? A well-executed recognition and rewards program delivers, all while aligning your employees’ workplace happiness with your company’s goals.
Rewards and recognition have come a long way since the Mad Men era. But if gold watches and corner offices are still your company’s M.O., no worries – we’ll get you up to speed.
Today, recognition is more sophisticated than handing out rewards for work anniversaries. In fact, studies show that when recipients expect a reward for a given behavior, the reward itself becomes easier to take for granted. This diminishes the reward’s value and motivating power.
So old-school rewards programs may mean well, but they aren’t maximizing returns for their companies. So what is working?
Your recognition and rewards program should be tailored to your company’s unique needs. At the core, though, every program should provide these important things for its company:
- The ability to easily recognize and reward workers in real-time.
- The ability to measure the results of your program.
- The opportunity to reinforce behaviors that reflect your company’s mission, vision, and values.
- Rewards that highlight and reinforce your culture.
Let’s break it down.
First, you want your program to be accessible to everybody in your company, and easy to use, even for non-techies. This is key to making a program a functional part of your culture. After all, company culture is lived every day.
Second, your recognition and rewards program should be linked directly to your company values. Identify the behaviors that reinforce your organization’s vision and reward them. Then your employees feel great about working toward the company’s goals —and everybody wins.
So you’ve got the basics down – it’s time to implement. For true company-wide transformation, make sure your rewards and recognition program includes these 7 features:
1. Rewards catalog
Build your employee rewards program around a custom catalog stocked with prizes that boost your culture and resonate with your employees.
The greatest rewards are meaningful to their recipients, so recognize your employees’ diversity by letting them choose their rewards! Reward options like gift cards, unique experiences, company swag, or donations to good causes will all motivate different employees, so make sure you offer a wide variety to choose from.
2. Activity feed
Employee recognition is most powerful when delivered in real-time – and the more visible the recognition, the better. Keep your rewards program top of mind and help employees shine in a company-wide, social activity feed.
Experts note that peer recognition may be just as motivating, if not more, than praise from a supervisor. So be sure your feed enables employees to recognize each other via high fives, props, or other kudos.
3. Nominations and awards
Traditionally, companies award employees for anniversaries, safety records, sales numbers, and more. Update this classic so that it reflects your company’s values. Then, bring it to the cultural level with employee buy-in.
Make it easy for employees to recognize their peers with in-platform nominations. And think outside the box to develop awards that celebrate your unique company culture.
4. Insights and reporting
Ad hoc gifting – like taking employees to lunch or giving them a pat on the back – may go a long way toward making your workers feel appreciated.
But it’s impossible to optimize or evaluate what you can’t measure. So from an organizational standpoint, the best recognition and rewards programs will offer insights and analytics that tell you where rewards are translating into results.
5. People directory
Want to unify your office culture? Include a people directory in your platform — especially if your company is fast-growing, has multiple locations, or employs remote workers. This helps employees put names to faces, and facilitates cross-team and inter-office recognition.
6. Group rewards and point pooling
The benefits of collaboration include increased camaraderie and engagement, more productive meetings, healthier employees, and more.
To encourage collaboration, grant employees the opportunity to pool their points and go in on big rewards together, like snack delivery or in-office massages. Then, watch the team culture strengthen as they strive to succeed together.
7. Behavior bonuses
Expand your rewards program to boost your culture with behavior bonuses. Bonuses go beyond recognizing work well done. They clearly communicate other behaviors that matter to your organization.
These can include participation in wellness programs, sharing job postings, and using public transportation instead of driving to work.
Make the change
Ready to transform your company’s retention, employee engagement, and ROI with the power of recognition and rewards?Kazoo’s all-in-one Employee Experience Platform includes the features above, plus all-star support, performance management perks, and more. Check out our Recognition & Rewards Buyers guide or schedule a demo to learn more today.