31 May, 2022
Emerging Trends in Employee Recognition Programs
At its’ core, employee recognition is the due acknowledgement and expression of appreciation for noteworthy contributions made by employees in the organization. Although this fundamental rationale shall always remain constant, the ‘how’ behind the recognition is what has undergone a momentous shift in recent years. This can be attributed to the transformational nature of business operations, especially with the increasingly competitive talent market that has coerced organizations to scratch traditionalism and adopt a dynamic, contemporary approach to business execution.
In this context, revamping the one-size-fits-all employee rewards and recognition programs with modern practices is an important step that firms need to take in order to keep up with emerging trends.
Pitfalls of Traditional Employee Recognition Programs
A few characteristics of traditional employee recognition programs that do not affirm the essence of appreciation and may lead to a wider disconnect between peers, managers, and the organization are:
1. Top-Down and One-Dimensional
The conventional method of recognition allows for appreciation to flow only from the top-down, with little to no discretion offered to individuals at the lower end of the hierarchy. This imbalance of power coupled with a one-dimensional recognition system based on end-results leads to disengagement and ultimately deteriorates the employee experience.
2. Infrequent and Out-of-Sync
These programs usually dedicate a single day of the year for annual rewards and recognition, in the form of a large-scale award ceremony. Such once-a-year events cause momentary happiness for sure, but they fail to provide timely and consistent recognition.
Emerging Trends in Modern Employee Recognition Programs
Deloitte has highlighted five market factors that make recognition even more relevant in today’s workplace. This blog walks you through these factors, and also mentions how modern employee recognition practices when deployed effectively, can help save the day.
1. Millennial Generation
The changing face of the workforce, with the advent of five generations collaborating together in the workplace is another significant development that needs to be addressed while designing your R&R framework. The millennial workforce demands new, contemporary approaches to the way they are managed, reviewed, and encouraged. A one-size-fits-all rewards program is ineffective in catering to a diversified workforce; this is where customized rewards come in!
Adopt a digital R&R platform that empowers the employees with the freedom to choose their rewards, instead of the standardized mass-produced corporate gifts.
As per the WorldatWork Report, technology enables managers to provide spot rewards and immediately recognize employees. The report also suggests that 76% of organizations are offering the spot awards, which have resulted in a 54% increase in employee engagement, 48% increase in motivation, and 51% increase in employee satisfaction. Thus, the advent of digitization is no less than a boon to employee appreciation and R&R.
3. Unstable Economy
Global crises and economic disruptions led to uneven fluctuations in compensation across a range of industries; this phenomenon coupled with static organizational cultures insinuated the Great Resignation. The unstable nature of the economy caused amass frustration and budgetary limitations. Recognition emerged to be a low-cost solution to retain, attract, and motivate employees amid stressful times.
A digital R&R platform can help in keeping up employees’ spirits through instantaneous recognition, both monetary and non-monetary. The hassle-free process further conveniences managers to adequately appreciate contributions, ranging from small achievements to big ones.
4. Need for Greater Agility
Reconfiguration of the workforce in response to dynamic business demands is the need of the hour. Agile organizations are equipped with a strong people-centric strategy that ensures a loyal, committed, and retentive worker base. One such strategy is the adoption of modern R&R practices.
Agility can be brought about through an employee engagement platform. A customizable solution that can adapt to the diverse and ever-changing needs of the corporate world is synonymous with effective employee engagement. Org-wide announcements, transparency in R&R processes, data-driven insights, point-based recognition, and a gamified leaderboard showcasing top recognition receivers are some of the key features that can help in sprucing up the dexterity of the organization as well as the employees.
5. Flattening Organizational Structures
As many organizations are shifting to a collaborative and less hierarchical work structure, innovative performance appreciation methods are gaining precedence over standard promotions. A digital R&R platform is the perfect way to streamline and innovate your rewards and recognition strategy.
Read more about modern employee recognition practices here.
Embrace the Future of Employee Recognition!
Now that the need for transformation of R&R is clear, it is time to take action. Modern employee recognition programs have now become indispensable to employee retention and satisfaction. Taking the time to brainstorm innovative ways to appreciate employees pays huge dividends on your bottom line; it boosts employee engagement, which consequently amplifies productivity. When you add robust employee listening into the mix, business performance ultimately skyrockets.
Book a demo of our revolutionary R&R platform, Gratifi for a deep-dive into modern employee recognition practices. Get in touch now!