The Dos and Don’ts of Employee Recognition Programs in Today’s Economy

By Angelique Rewers, ABC, APR, and Melissa Erdman

For the past several years, a tough job market has kept a lot of workers in their current positions. But now that the economy is finally turning around, albeit slowly, companies need to start thinking about how they will keep their top talent from jumping ship—especially if they cut salaries and other benefits to ride out the recession.

In fact, if your rank-and-file employees are feeling anything like what upper management is expressing, you may have a serious attrition problem brewing. In May, Chief Executive magazine published the results of a study in which it found that while 42 percent of business leaders say they are satisfied with their jobs, 96 percent of them would take a recruiter’s call about a new career opportunity. Not only that, but more than half say they are actively looking for a new job right now.

As communicators, we must consider whether this attitude is prevalent throughout our organizations, and, if so, what our companies can and should do after years of not only cutting back on perks, but also asking employees to do more with less.

For starters, we need to act fast to help our organizations clearly define and articulate their employee value propositions: the unique opportunities and attributes that make a company a compelling place to work in the new economy.

One strategy that can be helpful in this process is establishing an employee recognition program. Research shows a direct correlation between employee recognition and higher employee engagement. To put it simply, when a company rewards its employees for their work and dedication, those employees will be more willing to go “above and beyond” in the future, thus making that company more productive and successful.

Of course, we’re not talking about your father’s employee-of-the-month program. These days, employee recognition needs to be innovative, meaningful and authentic. How you accomplish that can take a number of forms—and it all starts with what it is you want to achieve. With that in mind, here are some guidelines to consider if you’re planning to launch or revamp an employee recognition program of your own.

DO align your employee recognition program with a strategic business goal.
What are the major business problems facing your organization today? Are your executives worried about retaining and engaging specialized talent? Driving greater innovation to win in an increasingly competitive market? Fostering a culture that values greater balance between work and life? As with any worthwhile communication effort, it’s important that your employee recognition program be part of a larger organizational goal. Otherwise, it risks becoming yet another “flavor of the month” initiative for which support will quickly fade. In addition, having a clear strategic purpose will make it that much easier to shape the specifics of the program.

DON’T let it become a popularity contest.
Many companies start employee recognition programs with the best of intentions. However, if you’re not careful, employees can perceive these programs as merely formalized favoritism. To ensure this doesn't happen, you’ll need to clearly define and openly communicate the eligibility and judging criteria for how awardees are selected. Likewise, be sure to form a selection committee that reflects a balanced cross-section of your company. Consider not only people from multiple business functions, but also those from different levels within the company, ranging from top leaders down to entry-level employees.

DO get input from employees.
Employee recognition is first and foremost about the employees. So whether you are birthing a new program or breathing life into an existing one, start by asking employees what they would like to see in the program. How do they think employees should be selected? How would they like to be acknowledged? And what would they consider to be the most meaningful rewards?

DON’T let it grow stale.
There’s a lot happening in companies today. People are busy. Priorities change quickly. If you’re not careful, an employee recognition program can easily end up on a back burner where it becomes as appealing as yesterday’s leftovers. The key is to keep the program top of mind with both managers and employees. Said another way, the communication plan for the program must be just as compelling, if not more so, than the program itself. Take into consideration not only the best channels to use, but also when it makes the most sense to hit your audience with information about the program. For example, it may be best to communicate during slower periods of the year or when morale needs a boost.

DO keep it timely.
One of the biggest challenges with formal employee recognition programs is just that: They’re formal. Inevitably, formality translates into layers of process, procedure and protocol, all of which take time. But whether providing positive reinforcement or giving constructive criticism, employee feedback is best done promptly, when the reason for it is still fresh in everyone’s minds. Successful programs don’t have to be elaborate or complicated to work. As you design your program, consider what steps you can take to make the nomination and selection process accessible, simple and expeditious.

DON’T let formal recognition supplant the informal kind.
Being recognized publicly makes people feel great. But employee engagement research shows that the most meaningful type of feedback is the informal yet heartfelt “great job” that comes from someone the employee respects. Often the communication channels that support the formal employee recognition program can be the ideal forums to educate supervisors on the importance of giving informal recognition too. You may also want to use them to outline best practices, as well as share what options are available to supervisors if they’d like to acknowledge someone in their department. For example, many companies allow managers to give out gift certificates or other prizes.

DO measure the effectiveness of your program.
It’s absolutely critical to measure the success of your effort: the return on your company’s investment of time, money and energy. What you measure and how you measure your results will depend on the initial strategic goal to which your program is tied. However, don’t just look at whether the end goal was achieved. Be sure to evaluate the role that the employee recognition program played in achieving that end goal. This can be done through a combination of surveys and focus groups, as well as through anecdotal and informal or formal feedback you receive from managers and employees.

All indications are that 2011 and beyond will offer more opportunities for employees than they have had over the past few years. That same survey from Chief Executive magazine showed that your company’s chances of losing a good worker are a full 89 percent. No one program has the power to ensure that key talent will choose to stay put. But when integrated into a compelling employee value proposition, recognition programs can play a key role.

Copyright © Bon Mot Communications LLC 2011

Angelique Rewers, ABC, APR, is owner of Bon Mot Communications in Baltimore, Maryland. Melissa Erdman is a communication specialist with Bon Mot. You can reach Angelique via www.bonmotcomms.com.