Do employee recognition programs work? The short answer is "Yes": Companies which have and develop regularly report increased productivity and reduced voluntary turnover. These programs can help foster a positive workplace culture, boost employee morale, and increase overall job satisfaction.
However, despite the benefits of recognizing team efforts, less than one-third of employees in Western Europe and the U.S. feel their company does a good job at it.
In this article, we will explore a few real-life examples of successful employee recognition programs, both from innovative initiatives in tech giants to unique approaches in small businesses.
Examples of Effective Employee Recognition Programs
The following examples highlight innovative employee recognition initiatives implemented by several major companies, showcasing their unique approaches and the impactful results they have achieved. These examples demonstrate how recognizing employees' efforts can lead to significant improvements in engagement, retention, and overall company culture.
Global Culture of Recognition for IBM
IBM had over 100 disparate recognition programs that were inconsistent and failed to inspire their 250,000 global employees. The lack of a cohesive strategy led to varying levels of employee engagement and appreciation across the company.
To solve this challenge, IBM and BI WORLDWIDE (BIW) embarked on a fact-gathering process, which included understanding the current state of recognition programs. Based on these insights, they designed the DayMaker: Employee Recognition Program, a three-tier recognition framework incorporating peer-to-peer, manager-to-employee and company-to-employee recognition.
Implementation of DayMaker led to remarkable results:
- Everyday recognition jumped by 50% with the new structure.
- Employees enthusiastically shared their reward stories, with many using their points for memorable experiences or to thank loved ones.
- The program resulted in a 134% increase in unique givers of recognition within one year.
- Unique logins to the recognition system increased by 41%.
- The Net Promoter Score (NPS) improved significantly, reaching the excellent range.
Keeping Remote Workers Engaged
Storable, a software company in the self-storage industry, faced the challenge of transitioning its 300-strong team to remote work. The shift from an office to remote working led to a problem: maintaining employee engagement and connection in a dispersed workforce.
They decided to solve the problem by implementing a new employee recognition program and introduced a rewards system called Storabills. This allowed employees to redeem experiences, gift cards, or make charitable donations. Peer-to-peer recognition was actively promoted through Bucketlist and integrated with Slack channels to facilitate continuous recognition and engagement.
The program generated positive feedback from team members about the platform’s impact on company culture. A subsequent employee engagement survey showed high scores in engagement and culture.
Digital Transformation
With a diverse workforce spread across various regions and functions, Carlsberg struggled with isolated communication channels and limited accessibility, especially via mobile devices. These issues hindered the company's ability to foster a culture of inclusion and effectively reach all 29,000 of its employees.
To address these challenges, Carlsberg partnered with Microsoft and Open Communication Group to build a custom platform integrated with Microsoft Teams. They conducted workshops to brainstorm the ideal modern employee experience and crafted an internal communications strategy.
Implementing CarlsNet improved Carlsberg's internal communications and employee engagement. The new platform saw a 50% increase in global news reach and a 27% increase in views. These efforts improved employee satisfaction, and positioned the company to attract and retain top talents.
Empowering Engagement
First Bank had expanded to 18 branches across NJ and PA by 2020, employing over 200 people. As the bank grew, it faced a common problem: maintaining high employee morale and engagement.
They launched the Bucketlist Rewards and Recognition program, based on the bank's core values. Instead of generic points, employees earned “bucks” for recognitions, redeemable for different rewards through the First Bank Marketplace.
Within just three months of launching the program, they achieved 75% staff engagement and almost 600 recognitions given. The program allowed for recognitions that were visible to the entire company, significantly boosting morale as employees saw their peers being appreciated.
How to Maximize the Effectiveness of Your Employee Recognition Program
Implementing a rewards program is a great step towards enhancing engagement and satisfaction in your workplace. However, to truly reap the benefits of employee recognition, you need to ensure that your program is both effective and sustainable. Here are some strategies to help you maximize the impact of your employee incentive efforts:
1. Personalize the Rewards
One size does not fit all when it comes to recognition in the workplace. Personalizing rewards to match your employees' preferences and interests can boost their impact. Allowing employees to choose their rewards ensures recognition is meaningful and valued.
2. Encourage Peer-to-Peer RecognitionEncourage a culture of peer-to-peer recognition where employees can nominate each other for good work. It spreads positivity and helps build stronger relationships within your team. Tools like internal news feeds or incentive apps can facilitate this process and keep everyone engaged.
3. Make Recognition Timely and Specific
Recognition is most effective when it is given promptly and is specific to the achievement. Rather than waiting for annual reviews, recognize your employees as soon as they demonstrate exceptional effort or achieve a significant milestone. Specific recognition, such as detailing what the employee did and the impact it had, is far more impactful than generic praise.
4. Integrate Recognition into Your Company Culture
For your recognition program to be successful, it must be an integral part of your company culture. This means recognition should be a regular practice embedded in your daily operations. Leadership should lead by example, consistently recognizing their teams and encouraging others to do the same. Highlight stories of recognition in company meetings, newsletters, or on your internal platforms.
5. Align Recognition with Company Values
Ensure that your recognition program aligns with your company’s core values and goals. Recognizing behaviors and achievements that reflect these values reinforces what is important to your organization and helps to promote the desired culture and behaviors across the company. For example, if innovation is a core value, make sure to recognize employees who come up with creative solutions or new ideas.
6. Measure and Adjust Your Program
Continuously measure the effectiveness of your recognition program. Gather feedback from your employees to understand what’s working and what’s not. Use metrics such as engagement scores, employee retention rates, turnover rates, profitability and productivity levels to assess the impact of your recognition efforts. Be prepared to adjust your program based on this feedback and data to ensure it remains relevant and effective.
7. Provide Training and Resources
Equip your managers and employees with the tools and knowledge they need to give effective recognition. This can include training sessions on how to recognize colleagues, resources such as templates, and access to recognition platforms that facilitate recognition.
Conclusion
Consistently recognizing and rewarding your team could enhance their job satisfaction and contribute to your organization's overall success. Employees who receive great recognition are 20 times as likely to be engaged as employees who receive poor recognition. Invest in your recognition program, and watch your company culture and performance soar.
