2 June, 2022
4 Employee Rewards and Recognition Myths Debunked
If you are in the midst of strategizing a modern employee rewards and recognition program, having a clear, established vision along with a conscious understanding of employee engagement is of utmost importance. An objective mindset comes from a strong understanding of the merits of employee appreciation and giving credit where it’s due. Moreover, with companies accelerating their digital transformation journey to complement the hybrid nature of work, digital recognition is now acknowledged as a critical means of engaging a diversified workforce. Nonetheless, due to the avant-garde nature of such technologies, this space may be shrouded by certain misconceptions that can serve as a major setback in the overall success of the program.
This blog outlines the top 4 myths about employee rewards and recognition that our team has encountered throughout the years, and why they need to be debunked in order to flourish as a people-centric organization.
Myth: Recognition is best given at an annual awards ceremony
Yearly award functions are the most traditional forms of employee recognition, and may have been sufficient in the past, but the current scenario of remote and hybrid working has deemed such once-a-year programs ineffective. To engage and reward a geographically as well as demographically diverse employee base, organizations need to update their R&R frameworks and digitize their approach. A digital R&R platform facilitates year-round recognition with easy reward redemption and various employee engagement features.
Most importantly, appreciation should not be given just one day; people deserve to be recognized for good work instantaneously, authentically, and throughout the year. This also helps in boosting employee retention especially with the ongoing Great Resignation wave. For instance, Gallup research shows that employees who do not feel adequately recognized are twice as likely to consider quitting their jobs. Thus, consider adopting a virtual method for sharing and celebrating moments you want to recognize, and reap the benefits in the form of a loyal, committed, and happy workforce!
Myth: Money is the best reward
The misconception of money being the most preferred reward is a far outdated one. In actuality, cash-based rewards more often than not, merge with an employee’s compensation and are utilized for meagre expenses or daily errands. Thus, money as a reward fails to provide a memorable experience that can be achieved through simple gestures such as a personalized message or social recognition. Such non-monetary recognitions have a lasting impact that lingers in employees’ minds long after the appreciation is received.
A report from the Incentive Research Foundation revealed that non-cash recognition, such as appreciation expressed by a manager, is more effective than cash bonuses and an increase in base pay. Hence, upgrade your R&R strategy by adopting an employee recognition software that offers multiple recognition categories with a vast catalog for redemption of reward points that includes gift cards, e-vouchers, experiential rewards, and physical products.
Myth: Employee R&R is the exclusive territory of HR only
The changing face of the corporate world entails that organizational departments such as HR, finance, administration, technology, etc. can no longer work in silos. When it comes to employee recognition and rewards, every team and department within a firm needs to collaborate and advocate appreciation to ensure holistic success of the program.
Unless there is a collective buy-in from the management as well as the employees, R&R programs will fall flat as HR alone cannot suffice the authenticity of appreciation. In fact, managerial recognition and peer recognition is far more effectual than a standard org-to-employee recognition, studies assert.
Myth: Rewards and recognition consumes significant time and energy
The conventional annual award disbursal scheme may have been a cumbersome and time-consuming task to undertake, however, this is no longer the case. With the advent of digital R&R solutions, a lot of administrative overheads and manual efforts have been ruled out as an org-wide collaboration tool takes care of most painstaking aspects. 360-degree automation of recognition, one-stop award procurement, easy reward redemption, and last-mile delivery are some of the key features that make R&R a seamless, hassle-free process.
Thus, the myth around employee rewards and recognition being a burdensome journey to embark on has been debunked with the wave of digital transformation.
It is Time to Think Outside of the Box!
Recognition done right is powerful, even more so when it is strongly linked to business outcomes and organizational values. Relying on preconceived, old-fashioned models can serve as a major setback to your dream of streamlining appreciation and cultivating a warm corporate culture. Overcoming these myths to arrive at the crucial juncture of holistic employee engagement is the first step!
Gratifi’s digital R&R platform complements your R&R framework and offers modular features that can be customized to suit your organization’s needs. Ask for a demo today to experience the platform in action!