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Creating a Culture of Recognition: Tips for Driving Loyalty

 Employee recognition is depicted with two employees dressed smart for an awards event blow confetti in a celebratory fashion
Employee recognition develops engaged and loyal employees. Making employee appreciation integral to your workplace culture can be achieved through meaningful and intentional practices.

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A culture of recognition develops engaged and loyal employees. Making employee appreciation integral to your workplace culture can be achieved through meaningful and intentional practices. 

Recognition in the workplace helps employees see that their company values them and their contributions, fostering loyalty and engagement.

Creating an employee recognition program is a start鈥攕o if you don鈥檛 have one, that鈥檚 a good first step! As companies grow, this becomes even more of a challenge, and leaders must rethink the way they add value to the employee recognition experience. 

 

What is employee recognition? 

Employee recognition refers to all the ways an organization shows its appreciation for employees鈥 contributions. It can take many forms and may or may not involve monetary compensation. Companies recognize employees for things like: 

  • Achievements 
  • Exhibiting desired behaviors 
  • Going above and beyond expectations 
  • Milestones such as tenure 

 
Why employee recognition matters 

From a very early age, we crave recognition from parents, teachers and friends. So strong is our desire for positive affirmation, particularly during developmental periods, that we can even perceive a neutral reaction as a negative one. 

This continues to hold true as we move into the workplace. Employee recognition helps to: 

  • Retain top talent 
  • Increase employee engagement 
  • Encourage high performance 

There's something invigorating about a workplace where recognition is more than just an end-of-year event. With over 700,000 survey respondents echoing this sentiment, it's hard to argue against the data.

Our 2023 discretionary effort study found that when each employee stands an equal chance at getting a gold star for their efforts, they are 2.2 times more likely to flex their discretionary muscles and go above and beyond their regular duties.

How management recognition fuels extra effort

The story doesn't end there. The study's spotlight also fell upon those at the helm鈥攐ur much-respected management. It turns out, a genuine 'thank you' from those in the corner offices can ignite a 69% increase in the likelihood of employees bringing their extra effort to the work floor.

逸遊娛樂城-Certified鈩&苍产蝉辫;company O.C. Tanner has also studied workplace dynamics and the role management plays in shaping them. They've examined employee engagement in-depth and unearthed valuable ways managers can tailor their workplaces to spur it on.

An employee survey included the question, "What is the most important thing that your manager or company currently does that would cause you to produce great work?" 

Respondents answered in their own words, providing a variety of responses, but a clear pattern emerged. 37% of respondents said that more personal recognition would encourage them to produce better work more often.

Recognition emerges as a top motivator

While other themes like autonomy and inspiration surfaced, recognition was the most common theme that emerged from responses. The study showed that affirmation, feedback and reward are most effective for motivating employees to do their best work. 

See the complete results in the chart below: 


By narrowing in on several statements in 逸遊娛樂城庐 Trust Index鈩 survey that measure how much employees feel recognized at work, we were able to see the impact of recognition culture on employee experience. 

逸遊娛樂城 analyzed 1.7 million employee survey responses gathered between 2018 and 2020 across small, mid-sized and large companies. 


Recognition makes employees feel promotions are fair, spurs innovation and extra effort 

After comparing the overall experience of employees who received recognition to those who don鈥檛, we found that recognition was strongly tied to several elements of positive company culture

Compared to those who do not consistently feel recognized at work, people who do feel recognized at work are: 

-鈥 2.6x more likely to think that promotions are fair 

-鈥 2.2x more likely to drive innovation and bring new ideas forward 

- 2.0x more likely to say people here are willing to go above and beyond 

Employee appreciation is linked to higher job satisfaction 

In the same Trust Index鈩 survey, when asked what makes their workplace 鈥済reat,鈥 employees who responded positively to survey questions measuring recognition say that they are 鈥渋ncredibly lucky,鈥 鈥渆njoy hanging鈥 and that the company has 鈥渆xcellent integrity,鈥 鈥渦plifting environment鈥 and some mentioned their 鈥渃areer success.鈥 


Employees who don鈥檛 feel recognized also struggle to describe what makes their workplace great 

Conversely, employees who don鈥檛 feel recognized at work responded to the same question with phrases such as 鈥減lays favoritism鈥 and 鈥減opularity contest,鈥 indicating there isn鈥檛 much that makes their workplace great. The only positive theme was 鈥渕atch benefits.鈥濃 

When asked what would make their company better, the employees who 鈥痜elt unrecognized responded with phrases that indicated feelings of unfair treatment and a manipulative work environment. Words such as 鈥渞ampant favoritism,鈥 鈥渟care tactics,鈥 鈥渟top eliminating,鈥 and 鈥渏ob tomorrow鈥 were most common among the 鈥渦nrecognized鈥 group. 

Employee Recognition Trends in 2023 

Democratize recognition 

Being recognized by one鈥檚 peers can be just as meaningful as recognition that comes from the top down. It also: 

  • Increases the number of opportunities for employees to receive recognition by widening the pool of potential recognizers 
  • Reinforces desired behaviors without resorting to explicit, top-down direction 

At software company Atlassian, the Kudos program enables team members to recognize their coworkers鈥 hard work and achievements. An employee might receive Kudos when going above and beyond, or after completing a long project. Kudos can be accompanied by gifts ranging from gift cards to books to wine. Last year, Atlassians awarded nearly 56,000 Kudos. 
 

Law firm Alston & Bird LLP  uses its quarterly newsletter to share the ways that team members are engaging with the surrounding community. 

Ally Financial's 鈥淚 am an Ally鈥 award program invites team members to nominate colleagues for their contributions and impact, whether their work affects customers, internal teams, or specific individuals. Internal feedback has shown the popularity of this program and its impact on employee motivation. 

By putting the power to recognize in everyone鈥檚 hands, you can create a sustainable, authentic source of employee recognition. 

Celebrate major achievements 鈥 but don鈥檛 forget the small wins 

You might find that it鈥檚 easier to recognize employees in some departments or roles than in others. This might be because their work is closely related to a major company initiative or KPI, or because what they produce is more visible than the work done in other departments. 

It鈥檚 great to celebrate these big wins! Just don鈥檛 forget about celebrating those smaller or less obvious successes, too. 

Recognizing employees whose work doesn鈥檛 naturally call attention to itself can help reinforce their sense of purpose at work, a key driver of employee retention

Hilcorp Energy Company recently recognized the importance of celebrating small successes. The oil and gas producer already had a 鈥淏ig Wins鈥 program that regularly celebrated successes in both the office and the field. But while this program created a lot of employee recognition opportunities, Hilcorp leadership realized that it was overlooking critical successes that weren鈥檛 necessarily as large or flashy as the Big Wins. So the company changed the program to 鈥淗ilcorp Win鈥 and began celebrating a mix of large and small victories. 

Wegmans Food Markets recognizes stores and employees for their contributions to the company winning awards, generating customer compliments, and living the company鈥檚 values, but they also make a point to highlight achievements that might otherwise fly under the radar. Wegmans recognizes stores for having the highest recycling rate, the fewest workplace safety claims, and the best food safety assessments. 

When designing or updating your employee recognition program, consider what critical but easy-to-overlook areas of your organization you can make a note to celebrate. 


How to create a meaningful employee recognition culture: 5 keys to meaningful employee recognition programs 

Many 逸遊娛樂城庐 clients, even those with strong company cultures, face challenges when it comes to team and individual employee recognition. 

While there is no universal program for every organization, all managers can use these five key elements of meaningful employee recognition. 
 

1. Be specific, be relevant 

Recognition is more meaningful when tied to a specific accomplishment or business objective. When recognizing employees, explaining what the recognition is for help employees relate the recognition to their behavior. This encourages continued strong performance.鈥 

Authentic appreciation is also tailored to the individual. Which of the鈥痜ive languages of appreciation in the workplace鈥痽ou choose to express should depend on what people prefer. 
 

2. Be timely 

Recognition that arrives months after the fact isn鈥檛 nearly as meaningful as recognition received promptly. 
 
The longer it takes for managers to recognize employees, the less likely employees will see the affirmations as authentic. Make employee recognition a priority and have formal recognition systems in place so you can strike while the iron is hot.鈥 
 

3. Recognition comes in many shapes and sizes 

There is a great deal of鈥(in a work setting) of every individual. Then, recognize them accordingly. 
 
Beyond a bonus or a raise, consider customized gifts, taking them out for dinner or other acts that show employees their reward is personalized to them. 
 

4. Little things go a long way 

While it's crucial to recognize major accomplishments, don鈥檛 overlook the power of the everyday thank-you to motivate employees. 

Writing handwritten notes, or using the intranet to promote the good behaviors of individuals, can help instill a regular culture of employee recognition. These thank-yous and shout-outs don鈥檛 have to come from managers alone; some employees may find recognition more motivating when it comes from their peers rather than from leadership. 
 

5. Connect to the bigger picture 

Recognition helps employees see that their company values them and their contributions to the success of their team and the company overall. 
 
This is particularly key when organizations grow or change. It helps employees build a sense of security in their value to the company, motivating them to continue great work. 

Regularly share news about how the company is striving to reach the mission, and explain how individual employee goals relate to that vision.鈥 

Organizations on the鈥Fortune鈥100 Best Companies to Work For庐 list鈥excel in employee recognition. 

Here are some examples of how these winning organizations recognize and reward their employees in meaningful ways: 
 

Examples of employee recognition 
 

1. Make it easy for managers to celebrate employees 

Global hotel chain鈥Hilton鈥痯rovides managers an annual Recognition Calendar that features 365 no- and low-cost, easy-to-implement ideas for thanking employees. 
 
The calendar includes reminders and tips for enterprise-wide, brand and department recognition programs; appreciation best practices; important dates like International Housekeeping Week; and recognition quotes to share with employees. 
 
It also allows users to add employee service anniversaries and local events. Users can download a print-friendly PDF or import an Outlook-friendly file into their personal calendars. 

2. Make recognition a red-alert event 

When clients of professional services firm Crowe respond to a satisfaction survey with the names of individuals who have gone above and beyond during projects, the survey generates a "Recognize Alert." 
 
Crowe takes Recognize Alerts one step further with its Pay It Forward program. Individuals who were recognized can "pay it forward" to other colleagues who played important roles in serving clients but weren't mentioned in the survey response. 
 
Crowe shares the names of both Recognize Alert and Pay It Forward recipients in Crowe Newswire On Demand so others can learn from their examples and the individuals feel appreciated. 

3. Meaningful gestures of gratitude 

Health care system鈥Texas Health Resources鈥recognizes employees' milestone years of service at five-year increments. 
 
At every milestone, honorees receive a beautiful customized celebratory yearbook. Each yearbook opens with a personalized congratulatory message of appreciation from the CEO. Inside, the honoree finds messages of thanks and appreciation from their manager and coworkers, as well as photos of the employee at work with their team, having fun and contributing to the mission. 

Recognition is absolutely essential in a great workplace, and it doesn't need to be complicated or expensive. 
 
Ask your employees what type of recognition is most meaningful to them. You may be surprised to find how much simple, genuine expressions of thankfulness inspire them to do their best. 


Claire Hastwell