Employee recognition does not have to be financial. In the end, how you distribute your employee recognition rewards often matters more than what you distribute. Don’t limit yourself to monetary rewards - think about how you can reward with time (like giving an employee an extra hour for lunch), situations (like the President taking an employee out to lunch to say thank you), or sentiment (like a hand-written note expressing your gratitude.) Sometimes, the least expensive recognition techniques are the ones that employees remember best. They may not remember how they spent that $5 gift card, but they’ll probably remember your heart-felt praise.
Studies have shown that employee recognition is most effective when it immediately follows the deed you want to encourage and acknowledge. Then again, educators, cognitive psychologists, and even animal trainers have known as much for some time. One simple way to mix up your employee benefit routine is to change when you dole out awards - ideally, as quickly as possible following the deed you hope to reinforce. Even if you’ve found a system that works, don’t get too comfortable in your employee recognition routines. Remember the power of the surprise party.
Why design your employee rewards program behind closed conference room doors? Certainly, stakeholders and managers may create a basic administrative framework for your employee recognition program, but your employees will appreciate the chance to imagine their own recognition rewards. If your organization follows best employee engagement practices, you’re probably already gathering feedback from your employees on what they need to do their work well. Why not ask what rewards they would like to see? And while you’re at it, ask your employees to nominate those who deserve recognition. You never know what brilliant suggestions and piercing insights your investigation could turn up.
Psychologists tell us that people are the most highly motivated in circumstances that offer random, unpredictable rewards. As Sam Anderson recently wrote for New York Magazine, "The most irresistible reward schedule is not, counter-intuitively, the one in which we’re rewarded constantly but something called 'variable ratio schedule,' in which the rewards arrive at random." The corollary for management is this: even your best employees may get in a rut unless you can keep them engaged with unique, honest recognition.
~Monica Nolan, Account Manager
Topic: Employee Experience