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When you think of ‘recognition,’ you’re likely to think of words of encouragement or phrases such as, ‘job well done!’

That’s because recognition is, at its core, an expression of appreciation that one person shows another. In most cases, we give recognition verbally and frequently throughout each day - whether it’s at work, at the grocery store, between friends and family, or even to a stranger.

However, when it comes to the workplace and organizational culture, what is recognition?

Moreover, why do companies need it?

Recognition is inherent and intuitive

People crave recognition.

We want praise in most any form, especially from those we look up to, which is why many organizations prioritize recognition as part of a broader engagement strategy.  

However, that doesn’t mean that all recognition is equal.

Some companies focus on rewards, others focus on both rewards and recognition, but most are actively employing recognition programs to some degree. Approximately 80% of organizations now use some form of a recognition program.

"Recognition is psychological. It taps into the intrinsic motivations people have to succeed, perform well, and feel valued and trusted."

In a recent article, we discussed the key differences between rewards and recognition and found that recognition is psychological. It taps into the intrinsic motivations people have to succeed, perform well, and feel valued and trusted.

Recognition is, therefore, intuitive and inherent to human interactions. It’s a part of our daily lives and provides the reinforcement we need to feel confident in what we do, both in and outside of work.

Recognition is a driver of growth (and retention)

We may not immediately think of recognition as a key driver of company growth and retention. However, more organizations and leaders agree that it’s an essential component to keeping top talent from jumping ship.

Studies from Deloitte, for example, report that recognition and leadership support is among the top three contributors to retention. Other research, from SHRM found that 68% of HR professionals agree that recognition has a positive impact on retention, while 58% agree it also helps with recruitment.

Those stats become even more relevant when you consider engagement. According to studies from Gartner, high-performing employees show higher risks of turnover; part of the issue with this turnover is disengagement, which can significantly impact whether employees remain with your organization. Given that recognition can assist with engagement, in turn increasing margins, leadership has to place recognition at the forefront of their culture strategy.

Speaking of workplace culture...

The positive ‘side effects’ of recognition mentioned above can also improve organizational culture, which more companies now view as a must-have.

You may be surprised to find, for instance, that 95% of employees feel recognition in the workplace plays a significant role in maintaining a positive workplace culture!

Meanwhile, research from Glassdoor has found that 81% of employees are motivated to work harder when their leaders show recognition for their hard work.

Retention is typically top-of-mind for organizations, primarily when recruiting the best talent is of considerable import to leaders. When just 15% of employees are engaged at work, globally, recognition can be used as a simple yet effective way of skyrocketing growth while improving retention rates in your organization!

There’s just one problem!

Without the support of leadership, recognition initiatives are often fruitless.

That’s where leadership buy-in comes into play!

In a recent study conducted by WorldatWork, it was discovered that only 52% of senior executives and managers view recognition as an investment. Organizations can no longer ignore the importance and necessity of recognition in the workplace. It also indicates that leadership support of recognition programs or initiatives is essential if organizations have any hope of benefitting from those positive side effects which result from recognition!

Consider this: 85% of employees prefer a simple ‘thank you’ for day-to-day accomplishments in regards to recognition.

If recognition is truly as easy as a ‘thank you,’ why aren’t more organizations employing this intuitive tool? Further, why aren’t more leaders on board?

The solutions could be simple

Leaders may be hesitant to practice recognition, even on a small scale, if it seems complicated to implement or lacks replicability.

A straightforward way of making recognition more approachable for everyone is to think of it as a tool you can use to celebrate wins, both big and small.

Gary Vee of VaynerMedia, for example, openly recognizes his own struggles with recognition but acknowledges that it’s important to stop and smell the roses and acknowledge when his teams accomplish something, no matter how small or significant. By also recognizing that he could continuously improve his recognition habits, he’s already playing the role of a more honest, transparent leader.

"Recognition is intuitive and inherent to human interactions. It’s a part of our daily lives and provides the reinforcement we need to feel confident in what we do, both in and outside of work."

Another method involves recognizing and applauding honesty in your teams. When employees provide feedback or deliver constructive criticisms about how their organization operates, leaders are presented with a unique (and rare!) opportunity to improve its culture. Being appreciative of that honesty and truth is a simple way of fostering a better workplace culture, with minimal effort.

Leaders may also consider making recognition timely and specific. For example, saying ‘thank you’ to a team member for a particular task encourages that colleague to continue delivering excellent work and positive results in a specific area of focus. Similarly, giving timely recognition makes it memorable and more specific to the outcome for which you are grateful!

Try recognition today (what’s stopping you?)

Ultimately, we all want to be recognized for our efforts. At work, receiving recognition could be the difference between a culture of productive and engaged employees, and a workforce of unhappy and disengaged teams.

By tying recognition into your culture and engagement strategies, you’re taking the steps necessary to ensure your people feel valued by both their leaders and their entire organization!

Most organizations try to promote employee engagement and commitment in some way. Whether you're introducing recognition software, monetized rewards, or custom incentive programs, here are just 4 ways to make the transition more effective.

Organizations use tools like recognition to encourage the behaviours and attitudes of their ideal team.

By recognizing employees for behaviours and attitudes that align with the organization's core values, leaders inform everyone on the team how to be the best player.  

More organizations are introducing recognition as part of a workplace culture strategy because employees care about organizational culture, job satisfaction, and the relationship they have with both their teams and company.

Various studies find a positive correlation between recognition and job satisfaction, the quality of work produced by teams, and motivation.

That’s not all. Other research shows that recognition not only boosts morale, but also encourages participation in key decision making. It can also make teams more enthusiastic about their work and organization.

As reflected in the research, many companies may even prioritize recognition over rewards.

When introducing new team members to your recognition strategy, you may find yourself struggling to explain the ‘why’ behind workplace recognition.

So, how can you get new hires on board with recognition?

Start by making recognition part of your onboarding strategy

Ensuring new employees know of and can relate to your organizational culture is a key part of any onboarding process, which begins long before their first day. It makes sense to introduce a new team member to your recognition program or software ahead of time.

When we hire someone to join our team here at Kudos, we keep in touch with them for several weeks leading up to their first day. We provide them with materials and resources ahead of time, so they can get to know our organizational culture.

At this stage, we also demonstrate how we use our recognition software here at Kudos.

By introducing new employees to your recognition program before and during their onboarding, they can explore recognition and be comfortable actively participating.

Communicate, communicate, communicate

Before any employee can hop on board with your recognition program and participate themselves, they need to know the 'why' behind your organization's use of recognition. This is where communication comes in.

Communicate to new hires what the program is, the goals of the program, and why it is being used to recognize peers and leaders within your company.

First, provide new team members with an overview of the program or software. This will give them context as to what the program does and which features they’ll be able to use.

Then, explain the 'why' behind your company's use of the program. For example, maybe engagement in your organization is low, so you use recognition as a tool to boost morale.

It's also essential to describe the purpose of recognition in your workplace – what are your goals?

If your teams use recognition to achieve specific goals, such as motivating employees, encouraging cross-department collaboration, and improving organizational morale – communicate those goals clearly to new employees.  

Without communicating the ‘why’ behind your recognition program, new hires may not understand its purpose or what you hope to achieve by implementing it.

Pair new employees with recognition ambassadors

Team members that have daily practice with your recognition program are the best ambassadors.

Consider pairing new employees with existing ones who know the program, and can explain its features in a way that is simple and user-friendly.

Here at Kudos, we pair new team members with a work buddy as part of our onboarding process. This work buddy introduces new team members to the Kudos platform. In doing so, new employees gain familiarity with the program and witness it in action. Some even send recognition the very same day they start their new role.

Having recognition ambassadors champion your team generates excitement, and encourages both new and existing employees to get on board with your initiatives.

Allow new employees to experiment and give feedback on your recognition strategies

The best way to know if your teams appreciate and use the recognition system is to measure the results. Of course, those results should always be accompanied by feedback.

With Kudos, you can measure the engagement and health of your working teams using our KQs and deep analytics. As always, ask your teams for direct feedback.

The response from your teams should always be taken into consideration; otherwise, a recognition program can swiftly become underutilized and underappreciated.  

During the onboarding process, take the opportunity to review your recognition initiatives with new hires. Their feedback is valuable because they are more objective about your program.

For example, after giving new employees 2-3 days to try out the recognition program you use, consider asking them a few key questions, such as:

• ‘Do you find it easy to recognize fellow employees using the program?’
• ‘Does the program or software make it easy to send, check, and keep up-to-date with recognition across departments?’
• ‘Is the program simple to navigate?’
• ‘Which features of the program do you like the most?’
• ‘Which features were you expecting to use, but don’t have access to?’

Keep in mind – the way you communicate the goals of your recognition program will impact the participation rate of new and existing employees.

You should listen to feedback from the teams actively participating in the program, and check in with them often. By doing so, you can continuously streamline your recognition program and ensure its practical and user-friendly.  

Interested in discovering even more tips and tricks for deploying recognition in your organization? Our nifty white paper on recognition can be downloaded here!

Previously thought of as something ‘nice to have,’ more organizations are jumping on board with recognition as a key factor of a broader employee experience strategy.

Recognition, as it happens, is the first driver in Marciano’s RESPECT theory, which you can read more on here.

Recognition has to be a priority in any working environment, as people crave recognition and appreciation - whether it’s for their own contributions, or the accomplishments they achieve as a team.

How organizations practice recognition, however, changes and evolves based on organizational goals, and yet, most companies focus on rewards ahead of recognition (think: bonuses or monetary gifts).

Here at Kudos, we offer the opportunity to use both rewards and recognition. We encourage organizations to take the leap towards focusing specifically on recognition. Now, what’s the difference between the two?

Rewards vs. Recognition

The concept of rewards and recognition-based programs appears to be similar; after all, both offer some form of validation for a job well done!

We can think of rewards as monetary or gift-based incentives that companies use to motivate employees or reward them for their performance, whether on an individual or group level.

Recognition, on the other hand, is psychological. It taps into the intrinsic motivations people have to succeed, perform well, and feel valued as well as trusted in the work they do.

Recognition is increasingly being incorporated into daily operations and practices by organizations. It creates a culture of respect, trust and autonomy as key drivers of employee retention and engagement.

That’s not to say that rewards-based programs don’t work; however, many studies have found that rewards often work only in the short term through temporary compliance.

For example, many rewards programs are structured to encourage employees to hit targets or reach milestones not because they want to, but because there’s a cash or gift-incentive attached to them. That is, using rewards for the number of goals teams reach as opposed to the quality of work they deliver.

Further, rewards may not guarantee that employees feel more valued or even rewarded. In some cases, rewards fail to change an employee’s perspective and attitude towards their organization. Maybe that’s why 83% of employees feel it’s better to receive recognition than a reward!

It’s important to recognize the difference between rewards and recognition, as both can be used as part of a broader employee experience strategy, but with very different end goals and results.

Does recognition work?

In a recent study, the Incentive Federation found that more employers are using non-cash rewards and recognition to encourage knowledge-sharing, inclusion, and relationship building in the workplace. Recognition plays a significant role in nurturing a 21st-century talent culture, whereby leaders are focusing more on fostering engagement in the workplace.

Other studies have shown that using cash and rewards exclusively can result in significant issues for organizations, such as employees gaming the system or competing to complete tasks for gifts alone.

Additionally, data continues to show written and verbal recognition as a more significant driver of engagement than a reward-based incentive.

Think of it this way: rewards are fleeting, but recognition is eternal.

After six years of research, Forrester found that employees thrive when they are empowered, recognized, inspired, and enabled to do their best work.  

Put simply, recognition can lead to employee success and an improved relationship between organizations and their employees.

In a study performed by Gallup, they found that money or cash rewards were not the most valuable forms of recognition, but, rather, verbal or written recognition! When employees feel appreciated and valued, they are more engaged, productive and, more importantly, happier at work.

From a customer or client perspective, happy employees are key to an organization’s success. Forrester notes that rewards-based incentives don’t always work, primarily when your organization uses them to encourage employees to nurture a better customer/client experience.

Why should leaders focus on recognition before rewards?

Recognition encourages the right behaviour - while rewards can work hand-in-hand with a recognition strategy, recognition is more psychological and can help nurture a pattern of long-term, positive behaviour. While cash or monetary-based rewards are appreciated, they don’t create long-lasting motivation in employees to engage, be productive, and care about their work.

Recognition fosters trust between leaders and employees - By providing consistent recognition, leaders can establish trust and confidence in employees while nurturing employee loyalty. Teams want and need to trust their leaders to do right by them, which includes recognizing awesome work!

Recognition creates environments for an open and transparent communication - When we recognize others, we often do so using our words and put thought into why we’re recognizing someone and what we’re recognizing them for. Leaders can, therefore, create more communicative workplace environments where people feel comfortable openly confiding in and talking to their leaders (and vice versa!).

Recognition reduces turnover and increases revenue - There’s a 31% lower voluntary turnover rate for organizations that give regular recognition, and many companies see an increase in revenue when employees are recognized and valued for their work. An older yet still applicable study from Fortune’s ‘100 Best Best Companies to Work For’ found, for example, that companies with happier employees saw an average 14% stock increase year-over-year from 1998 to 2005!

Recognition shows leaders are invested in their people - Did you know that 28% of employees feel their most memorable recognition came from their direct leaders or managers? When leaders recognize their employees, they’re not only showing that they care but are signifying that they’re invested in the success of those employees!

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In today’s modern workplace, top-down recognition efforts and long-standing service awards just don’t cut it. Peer recognition is crucial for organizational success.

Traditionally, peer recognition programs have been viewed as a ‘nice to have’ rather than a ‘need to have,’ but recognition plays an increasingly vital role in helping employees thrive at work.

Without consistent and frequent employee recognition, an organization’s health is jeopardized. From poor onboarding experiences and high turnover to employee disengagement and more, a company is only as strong as its teams. Including a peer recognition program in your engagement plan fosters a culture in which your teams contribute their best work every day.

What is Peer Recognition, Exactly?

Peer recognition (also known as, peer-to-peer recognition) is the expression of gratitude or praise among employees for their contributions and accomplishments.

The key benefit of peer recognition is the motivation and engagement that results from employees giving one another positive feedback and recognizing each other’s hard work.

Contrary to popular belief, peer recognition is not always formal. In fact, peer recognition takes many forms, and employees practice peer recognition every day when they do something as simple as saying ‘thank you’ to a fellow colleague or ‘good job’ to a teammate.

However, many organizations are recognizing the benefits of providing official channels for employees to socially recognize their peers. It’s one of the key ways in which innovative organizations drive their businesses forward and retain their top talent.

Do I Need a Peer Recognition Program?

The short answer is yes, you absolutely need a peer recognition program.

Studies show that peer recognition has a significant impact on the health and success of organizations. More C-suite executives are focusing on recognition strategies and programs to motivate, engage, and retain their high-performing team members.

Employees crave daily affirmation for their efforts and contributions. If you’re not recognizing your people and providing them with opportunities to pat one another on the back every day, you’re at higher risk of losing them to organizations that will.  

Why do I Need a Peer Recognition Program?

It empowers all team members in your organization, regardless of title or hierarchy

By practicing peer recognition, employees and leaders alike can share genuine feedback and positive praise with one another, regardless of their standing in an organization. This not only improves and nurtures peer relationships, but creates trust in leadership and showcases an inclusive culture of people who work as a team to benefit the whole.

It’s organic, inherent, and breaks down barriers

What was once a formal and cumbersome process of praise is now an approachable, organic, and easy way to recognize your colleague’s contributions. Peer recognition breaks down the barriers associated with nomination-based recognition processes, and provides opportunities for real-time appreciation and communication.

It’s effortless for everyone, especially admins

A peer recognition program makes it easy for all employees at every level of an organization, especially admins, to practice recognition. Dedicated programs for recognition save the time usually wasted on approval flows and recognition tasks.

It nurtures a confident, transparent, and engaged work culture

Supporting peer recognition signals a belief in transparency and visibility across an entire organization, whereby employees can give recognition and acknowledge other acts of praise, too. This establishes a framework through which every employee feels confident and comfortable giving recognition, while everyone else can participate and support one another.

It fosters a more authentic employee experience

With peer recognition comes the opportunity to build better relationships with your employees and top talent. Not only does it work to effectively promote company values and behaviours, but it also nurtures connections between coworkers. All together, peer recognition fosters a collaborative organizational culture.

What does this Mean for Your Organization?

Thanks to peer recognition programs, organizations stand out to job seekers and top talent. Peer recognition programs are a seriously effective tool for showcasing their thriving culture and engaged teams to potential candidates. By implementing a simple peer recognition program like Kudos, organizations nurture employee engagement, improve turnover, retain their top talent, and foster a happier work culture.

Every year, Employee Appreciation Day is celebrated on the first Friday in March - This is the official day to thank employees for their contributions to your organization. Recognition and appreciation can boost morale, increase employee engagement and reduce turnover.

Here’s the secret behind it all - be genuine and unique. What works for one organization may not necessarily work for another. In addition, forced recognition could backfire and result in disengaged employees.

To make it easier to celebrate, we’ve put together a list of simple awards to hand out to your employees on Employee Appreciation Day!

Coffee Connoisseur

Is there an employee who tastes a cup of coffee and can immediately pinpoint whether it’s an Arabica or a Robusta bean? Do you know someone on your team who can ruminate on the brewing intricacies of the AeroPress versus the Chemex? If you answered yes, then they are the perfect candidate for the Coffee Connoisseur award!

Walking Wikipedia

Did you know that peanuts are used as an ingredient for dynamite? Or that the shark is the only fish that can blink with both eyes? This award is dedicated to employees that seem to know almost everything about anything.

Office DJ

According to Plato, music gives a soul to the universe, wings to the mind, flight to the imagination and life to everything. Award this to the employee who always gets asked to play their songs on the office speaker or who knows the perfect song to create just the right mood.

Martha Stewart

From cookies to brownies, potato salad to curries, this award is for the employee whose dishes and treats always result in a stampede to the kitchen.

MacGyver

Like a house, there’s always something that’s broken in an office. Hand out this award to the employee who’s fixing things from weird bugs in the system to that annoying flickering light in the hall.

Social Director

Team bowling? Brazilian barbecue before a long weekend? Group Karaoke? This award is for the employee who knows that a team that works hard should play hard - together.

Fitness Fanatic

With Health and Wellness being a top priority for many organizations, award your healthiest team member for putting wellbeing (mental, physical, emotional or financial) at the top of their list.

Dishwasher Director

My mother always told me that the dishes didn’t clean themselves. So hand this award to the employee who’s always working the dishwasher to keep those dishes clean!

The Bermuda Triangle

If you can't find a stapler or paperclips but you know you can always find it at this person's desk, then they deserve recognition. This award  goes to the employee whose desk always has the office supply you're looking for.

Client Whisperer

Frustrated clients or team members often head to this employee for calm, zen-like empathy. Be sure to award them with this title, so they know their peaceful and positive vibes are appreciated!

Glengarry Glen Ross Award

Coffee is for closers only! Award this title to the employee who lives by the motto “Always Be Closing” and closes deals like they’re going out of style.

Caution Captain

Do you know where your office first aid kit is? What are the steps for CPR? Workplace Safety is a growing concern at many organizations, so be sure to recognize the employees who make safety their top priority.

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At Kudos, we’d like to make every day Employee Appreciation Day - we believe that recognition should be given for the big things and the small things. Book a call with us, and we’ll show you how recognition can elevate your workplace culture, boost employee morale and improve employee engagement.

From the Kudos team to yours, Happy Employee Appreciation Day!

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