Three Fundamental Types of Employee Recognition

25 May, 2022

Three Fundamental Types of Employee Recognition

There is no denying that people respond positively to being recognized and rewarded. Appreciation induces a cascading effect on employee engagement, productivity, performance, and loyalty towards the organization that consequently impacts the bottom line with significance. As trivial as it may seem in a larger context, employee recognition is undoubtedly one of the most important drivers of business success.

However, recognition is more than just a pat on the back from a manager; its’ horizons go way beyond traditional top-down reviews. With the dynamic power shift taking place in the employee-employer markets, it has been realized that positive reinforcement can in fact be derived from multiple directions and the best employee R&R program is the one that utilizes a multi-pronged approach. This blog walks you through the three fundamental types of employee recognition- and how they can be implemented within your organization.

Manager-to-Employee Recognition

This top-down method is one of the most common types of employee recognition practiced widely by most organizations. Although being a traditional, centralized approach to appreciating employees, its’ essence is still extremely vital to cultivating an organizational culture of gratitude.

However, according to Gallup, fewer than a third of workers have received praise from a supervisor in the last seven days. This anomaly is primarily due to the lack of a formal recognition channel and focused efforts toward equipping managers with the necessary tools to recognize individuals in-time. For recognition to appear authentic and genuine, it needs to incorporate three major aspects- time, consistency, and personalization. An ideal manager-to-employee recognition should be given as soon as an employee’s contribution is noticed and it should be specific and personalized to enhance the effect. Above all, recognition needs to be a year-round activity, not just a by-product of annual reviews or performance analysis.

Tips to get started

1. Equip your supervisors with the right R&R tools and technologies that allow instantaneous, personalized, and consistent employee recognition

2. Leverage an R&R software to send periodic reminders to managers in the form of nudges to recognize and reward noteworthy contributions

3. Implement social recognition org-wide, that allows employees to share their supervisor’s recognition with colleagues, as well as over other social media platforms such as LinkedIn and Twitter.

4. Encourage your managers to appreciate day-to-day achievements, however small. A simple non-monetary recognition accompanied by a personalized message, for instance, can go a long way in motivating your team members to do better.

 Peer-to-Peer Recognition

Peer-to-peer recognition is a contemporary approach to appreciation and has gained immense traction in recent years. The positive impact of being appreciated by your superiors is undebatable, but it is also important to note that a top-down approach comes with certain limitations. When managers are the only ones doling out appreciation, a lot of good work that goes on within teams may go unnoticed due to hierarchical restraints.

On the other hand, when recognition flows to-and-from employees at all levels, its’ value multiplies as a peer knows first-hand of the challenges faced on the job and understand the responsibilities that come with it. In fact, in some cases, SHRM found that employees prefer to be recognized by their peers over their managers or superiors because their recognition feels more genuine.

Tips to get started

1. Provide an accessible and convenient method to recognize, such as an easy-to-use web portal and a mobile application

2. Enhance the recognition experience by offering personalized e-cards and the option to upload relevant media content, along with a heartfelt note from the peer

3. Use gamification to spruce up peer recognition- badges, levels, and a leaderboard showcasing top recognition receivers is a great way to induce friendly competition and propel motivation among your team members

Organization-to-Employee Recognition

One of the most formal yet effective form of recognition is the one between the employer and employees, or organization-to-employee recognition. This type of recognition has numerous benefits on a high-level scale- when team accomplishments such as project completion, goal achievement, or consistent performance is recognized by the organization publicly over a social forum, it ultimately leads to increased faith, trust, and loyalty towards the employer and also strengthens the organizational culture in the process.

Tips to get started

1. Adopting an org-wide employee engagement platform can help keep employees informed and provide a virtual space dedicated to professing appreciation

2. Such platforms can serve as a centralized hub of recognition activity and communication related to ongoing contests, quizzes, surveys, and polls that aid in tracking the pulse and sentiment of your people

3. Org-wide announcements pertaining to policy changes, new initiatives, CSR activities, as well as Townhall sessions with the CEO or a heartfelt appreciative message from the senior management can all be administered through a virtual platform

Building a Successful Employee Recognition Program

Employee recognition is an essential piece of today’s HR puzzle- especially if your organization is facing the brunt of the Great Resignation, battling poor performance or facing employee burnout. 68% of HR professionals agree that employee recognition has a positive impact on retention and 56% assert that such programs also help with recruitment.

Thus, having a robust employee R&R platform in place is the best way to build a culture of recognition as it streamlines the process, increases transparency and accountability surrounding who is receiving recognition and how often, and helps align R&R practices with your corporate culture.

Gratifi’s revolutionary R&R solution has helped many organizations in implementing a multi-pronged 360-degree recognition framework. Book a demo today to experience the platform in action!

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