Awards Network Blog

5 Keys to a Successful Employee Recognition Award Program

Written by Amy | Nov 19, 2007 8:16:22 AM

Countless organizations strive to be the top employers in their field, and many probably either already have an employee recognition program or are exploring the possibility of setting one up.

Successful employee recognition programs are a proven benefit and can be integral in assisting a company meet important goals as well as enhancing their status as an employer of choice. Recently, Susan Heathfield, author of Your Guide to Human Resources, offered some tips on effective employee recognition. As to be expected, every business wants to ensure that the time and money dedicated to an employee recognition program is well spent. I would like to add a few key tips that will help make an employee service award program popular and successful from its kickoff.

1. Budget for Fairness. A program administrator cannot even begin to plan an employee recognition program without first knowing exactly what the budget limits are and what sort of awards fit that budget. As with most things in the business world, good budgeting can make or break an employee award program. Knowing the total budget amount allotted and a good estimate of the number of awards that will be given each year, one can calculate the per person dollar value to safely spend on each award. It is essential to establish a set value for each of the program's awards to ensure each recipient is receiving equal recognition for any given award. Nothing kills an employee service award program's effectiveness quicker than it being perceived as unfair by employees.

2. Make Program Goals Relevant and Attainable. In order to successfully complete the employee award program's budget plan, the different achievements that the employee recognition program will award need to be well planned and relevant to an organization's goals. If a company is looking to improve its employee retention and longevity, an employee service awards program with gifts given at set milestone anniversaries could be ideal. For an organization looking to boost sales and profit, a sales incentive award program could really make an impact on the bottom line. All employees should be well informed of what goals they must complete to receive the award and should feel that they can actually attain these goals. Kicking off an incentive award program in which employees need 3 years of exceeding sales goals before they see any rewards for their efforts would not likely motivate participants.

3. Decide on the type of reward. Tangible merchandise based awards are quickly becoming the norm for employee recognition and incentive award programs, beating out non-tangible rewards such as cash bonuses and gift cards that have been popular in the past. While non-tangible rewards are taxable and must be reported, tangible merchandise used as employee service awards are not. Merchandise based awards selected by the recipients ensure that every recipient will receive a valued award that will provide a lasting memory of the goals they achieved each time it is used. Tangible merchandise based reward programs also tend to provide important reporting capabilities that allow management to track award redemption and verify the success of their employee recognition program.

4. Plan the Presentation. Once the employee recognition program's goals are decided upon and the budget is properly planned, the next step is to decide exactly how the recognition will be given. Depending on the program and its goals, it might make sense for an organization to set up an annual or quarterly ceremony for a formal presentation. If a large gathering is not feasible, companies may decide to have a supervisor personally present the employee’s award or they may notify the recipient via email as goals are achieved and awards are allotted. If the employee service award program is set up to award for many different achievements, a variety of presentation techniques, depending on each award's level of formality and/or frequency, may be incorporated.

5. Ensure Award Accessibility. Once the budget is established, the type and level of awards are selected and the method of presentation is decided, the last step is to ensure that employees will have no difficulty selecting and receiving their gift. Depending on the recipient demographics, a program administrator can decide on what method to offer employees for redemption and program communication. If an organization has no internet access a completely online employee award program might not have the same impact as a program that offers both online and paper-based redemption and communication. A successful employee recognition program is flexible enough to meet the needs of any demographic and can also ensure ease of use for companies with employees working in different locations, in the field or from home.

An organization that takes the time to recognize an employee's hard work and dedication is an organization that knows there is more to employee motivation than just a paycheck. A successful employee recognition program will lead to lower employee turnover, higher productivity and a brighter future as recipients meet and exceed goals. Be sure to consider these 5 keys when planning or re-evaluating an employee recognition program and rest assured the program will be well worth the investment.