According to Gallup, recognition motivates 82% of employees to improve their job performance. They have also discovered that a top factor to raise overall employee engagement is regular praise, recognition, and rewards from managers. This is especially true for Millennials.
Managers derive real value when they go through the steps to strip redundant or outdated layers from their recognition and rewards programs. They’re inventing programs to delight and surprise employees and stay true to the brand (as Mary Kay’s pink Cadillacs did for decades and still do) for a certain slice of the working population. Josh Bersin’s team at Deloitte finds that global workplace Recognition programs are inefficient and ripe for disruption.
In WeSpire’s Rewards and Recognition white paper, we estimate that the recognition market is over $45 billion in size and is mostly focused on rewarding tenure, not on performance and accomplishments. Our research found that these programs drive very little value at all’ only 58% of the employees we surveyed even know that their company has such a program.
Talent coach Meghan Biro puts it this way: In many organizations, recognition and financial reward are joined at the hip. An employee does something above and beyond and receives a gift card or a lunch with the boss; a team achieves a goal and is rewarded with a party. These rewards, however, can backfire; they tell the employee that he or she is worth n dollars to the organization for some level of effort. We say, challenge yourselves to a more creative’and brand-appropriate’reward that’s tied into company goals.
With four (and arguably, five) generations working full-time, and rich cultural diversities also in play, managers must be sensitive to various preferences.
To get the full story and key takeaways on how you can create a rewards and recognition program that will resonate with your entire workforce, download our Rewards and Recognition white paper today.