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Create an employee recognition and rewards program
Oct 28, 2024 | 5 minute read
Studies show that most Americans leave their jobs due to a lack of appreciation.
An effective and sustainable employee recognition and rewards program can increase engagement, make employees feel appreciated and reduce turnover. As a business owner, you can develop award programs for employees, similar to what larger corporations have, that will help you attract and retain talent.
With a little forethought and planning, you can make hard-working employees feel appreciated and reap the benefits for your business growth. You could also potentially reduce voluntary turnover. The 2024 Consumer Prepaid Survey conducted by Javelin Strategy and Research found the following: 16% of the total population reported receiving an employee incentive. Among full-time employees (FTE), this number rose to 34%. Of those who received an employee incentive, 83% stated it led to higher employee satisfaction, and 85% of the FTE subgroup felt the same way.
Following these steps can help you develop an effective and sustainable employee recognition and rewards program.
1. Establish team recognition
Don’t try to develop a team recognition program in isolation. Creating an employee recognition plan can certainly promote positive vibes, but don’t let it replace constructive criticism. Encourage a culture of constant improvement to sustain enthusiasm in your program. If you only reward outstanding performance once a year, you may only see outstanding performance once a year.
2. Identify what you want to reinforce
As a team, decide what kinds of behaviors you want to encourage with your staff rewards and recognition program. Your objectives should align with your company’s goals and values. For example, if delivering exceptional customer service is one of your company goals, find ways to measure and reward behaviors that contribute to this goal. Similarly, if your goal is to create a more respectful culture, you could reward employees who start and end meetings on time. Another option is to reward entire teams or the entire company for achieving big goals like reducing spending or reaching growth targets.
3. Clearly communicate expectations and set attainable goals
When you announce your employee recognition plan, make sure people understand what’s in it for them and why they should care. The answer should go beyond the carrot at the end of the stick. Explain how their efforts contribute to the organization’s success, so they feel a sense of purpose. Employees want to feel their work matters and that their dedication is noticed.
Make sure you set attainable goals as well. Start by assessing what’s achievable based on your company, industry and people. If your competitors are growing by an average of 5 percent per year and you set a goal to grow your company by 20 percent, that’s probably unrealistic. As a result, employees will likely feel discouraged and reject the program.
4. Make sure it works for your company
Fine-tune your program regularly by evaluating if it’s motivating employees, if it’s helping individuals and/or the organization achieve goals and if it's aligning with the culture you want to create for your company. One easy option is recognizing employees with prepaid rewards cards, such as U.S. Bank Rewards Cards, which allow them to purchase whatever they want, online or in-store.
What works for one company may not work for another, but there are lots of great ideas out there for an employee recognition and rewards program!
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