The Guide to
Modern Employee
Recognition
Learn more about employee recognition at bonus.ly
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Introduction 5
1. What Is Employee Recognition? 6
2. Why is Employee Recognition Important? 10
3. Types of Employee Recognition and Rewards 14
4. How Do I Build a Successful Employee Recognition Program? 18
5. Employee Recognition Tools and Resources 27
6. 12 Unique Examples of Employee Recognition in Action 33
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Introduction
What can I expect from this guide?
The Guide to Modern Employee Recognition covers the knowledge you'll
need to successfully understand, cultivate, and support a culture of
recognition in your organization.
We'll start by laying a solid foundation for you to build on. Then we'll walk
through the basic steps required to successfully prioritize recognition at your
own organization, implement a successful recognition program, and
maintain an atmosphere of appreciation and recognition in any organization.
How should I use this guide?
You can start with any section you find interesting or useful, but we
recommend beginning with the fundamentals and building up from there.
If you're already familiar with the fundamentals, this is a great opportunity to
brush up on current best practices and gain new insight.
Let's get started!
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1. What Is Employee Recognition?
What does recognition look like?
At its core, employee recognition is the open acknowledgment and
expressed appreciation for employees’ contributions to their organization.
🎉
It could be a high-five for a job well done, a special shout-out during an
all-hands meeting, or even a bonus for meeting a monthly goal.
Recognition can take many forms, but whatever your approach, it's one of
the most valuable areas a team can focus on. Implementing the right kind of
recognition program is a critical factor in giving your business the
competitive edge. With that in mind, o rganizations are increasingly adopting
and rethinking recognition programs. They’re powerful, and they can
improve employee engagement, r educe turnover, increase productivity,
boost morale, and build purpose when used correctly.
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Who gives recognition?
Ideally, everyone in an organization should be able to give each other
recognition. That said, the most effective source of a particular piece of
recognition is based on the situation and circumstance.
Top-down recognition
Recognition is traditionally given in a top-down system, where an employee’s
supervisor, manager, or leadership team witnesses and appreciates their
contributions.
This is a great model for many reasons: since these leaders are typically in
decision-making roles, their recognition often has monetary results, like a
raise or promotion. These people are also in the best position to assist
employees with their chosen career path or growth plans.
However, giving frequent, real-time, and specific recognition isn't a simple
proposition for management. It requires managers to witness, catalog,
recognize, and reward countless contributions.
In most cases, there are too many valuable contributions made on a daily
basis for a solely top-down recognition approach to be effective. Most
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leaders just don’t have the bandwidth to keep track of everyone’s hard work.
That’s why the most common form of top-down recognition is an employee’s
annual review.
Unfortunately, annual reviews can be a significant source of stress and
typically only highlight an employee’s largest, most visible contributions.
Annual reviews also include suggestions for employees’ areas of
improvement, which can distract from praise.
That’s not to say that managers shouldn’t give recognition at all. On the
contrary, they definitely should! When it comes to completing big-picture
objectives, recognition from higher-ranking leaders can emphasize the
magnitude of an employees accomplishment. However, for the day-to-day,
it’s a good idea to ask for help from the rest of the team.
Peer recognition
In a peer recognition system, managers as well as other co-workers are all
empowered to recognize and reward the contributions of everyone else. It’s
easy for managers to congratulate an employee on their general job
performance, but their peers are working right beside them, day by day.
They're in a much better position to recognize an employee's specific
contributions and understand the immediate impact those contributions
have.
It's simple. You see a teammate do something valuable, then praise them for
it.
We also can’t ignore the benefits of bottom-up recognition. Managers need
appreciation, too! Recognition is motivating and insightful for everyone, even
those in senior positions. With 360-degree style recognition, everybody in the
company has a voice in how they want to express their feedback.
Recognizing direct supervisors and leaders for the work they do isn’t
brown-nosing––it’s a method of interpersonal communication that benefits
everyone involved.
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Will recognition work for my team?
Yes! 😁
Every team can benefit from a recognition program.
When you implement one, you give employees a way to celebrate each
other's achievements. These interactions build stronger teams, cultivate
richer company culture, and motivate employees to do their best work.
When executed successfully, recognition provides positive peer influence and
communicates the notion that good work is valued by everyone in the
company.
Looking at the bottom line, companies that score highest for building a
"recognition-rich culture" have 3 1% lower turnover rates than their peers.
What’s more, employees who don’t feel recognized are t wice as likely to quit
within a year.
After all, being appreciated just feels good. Why? It releases the flow of
oxytocin, the chemical our bodies create when we bond with others and feel
loved. The T INYpulse Employee Engagement and Organizational Culture
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Report found that 58% of the happiest employees will recognize and
encourage their peers' success when given tools to make it easy.
A recognition-rich culture is a worthy and achievable goal for any
organization, in any industry. It benefits the whole team, from the newest
hire to the CEO.
The key to success is understanding how employee appreciation works, and
how to implement it effectively in your unique environment.
What will it cost?
Most organizations without a formal recognition program are already
spending money on recognition. From organizing celebratory lunches to
bulk-buying gift cards, the labor and costs associated with “manual”
recognition can add up quickly. This method of recognition tends to be
sporadic and can be time-consuming for leaders or HR employees to
manage.
The budget is usually accounted for—just allocated less effectively under a
different name. Also consider who else benefits from recognition. Chances
are, the decision-makers for other departments also see the need for
recognition and would be willing to join in.
An effective program normally pays for itself and more in the form of
increased motivation, productivity, engagement, and retention. In our next
section, you’ll learn exactly how recognition has a positive impact on each of
these factors.
But why?
Understanding employee recognition is the first step, and in the next
chapter, we'll share why employee recognition is important. Read more to
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learn about the many benefits of employee recognition and how using a
recognition program like Bonusly can be an extremely effective way for
teams to feel valued, perform better, stay engaged, and more. We invite you
to tour the platform and join us for a demo to learn more about how you can
start building a recognition-rich organizational culture.
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2. Why is Employee Recognition Important?
A well-implemented employee recognition program h as the power to impact
many aspects of a business including engagement, turnover, productivity,
morale, and purpose. A non-existent, unintuitive, or poorly-implemented
employee recognition program can have the opposite effect, decreasing
motivation and even pushing good employees away.
Meanwhile, engaged employees are beneficial for workplaces in every way:
they’re higher performers, they’re connected and committed to their
company, and they’re willing to go above and beyond their role. In
organizations that put a heavy emphasis on praising and recognizing
employee achievements, engagement levels increase by n early 60%.
When asked what leaders could do to improve engagement, 58% of
professionals endorsed giving recognition. It’s no wonder that successful
organizations across the world prioritize engagement through recognition.
But the needle hasn’t moved much: 4 0% of employees still think that
employee recognition isn't a priority in their organization. Here’s what those
organizations stand to lose when they don’t prioritize employee recognition:
Retention
Do you know how much employee turnover costs you each year?
You and your team no doubt monitor spending on advertising, hardware,
and workspaces, but you might not have a grasp on just how much employee
turnover is costing you—which is why it’s probably costing more than you
think. 💸
Between writing and posting a job description, screening and interviewing
candidates, negotiating relocation packages, paying referral or signing
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bonuses…just the cost of finding a new employee adds up. You can use our
cost of employee turnover calculator to establish a cost baseline, but it's
important to remember that like an iceberg, much of the cost associated with
turnover is hidden.
Indirect costs of employee turnover include decreased productivity, lost
institutional knowledge, and lower morale. When an employee leaves, their
team absorbs additional work, which hurts company culture in the form of
unhappy team members who are less productive. Even once an organization
has hired someone to fill an open position, that new employee needs to be
oriented and trained. While w elcoming a new team member is typically an
exciting time, it’s important to note that productivity might drop with the
addition of a new team member before it goes up.
Fortunately, recognition is something all employees appreciate and respond
to. It’s a critical step in reducing turnover.
In a study by Bersin & Associates, organizations with recognition programs
that were highly effective at improving employee engagement had 31% lower
voluntary turnover than those with ineffective recognition programs. As it
stands, 6 6% of workers are likely to leave their job if they feel unappreciated.
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Productivity
Productive employees benefit companies in every way, from increasing
profitability to optimising resources. Productivity is very closely tied to
companies’ profitability, and is a top driver of success at modern companies.
According to B ain & Company, the best companies are 40% more productive
than the rest, and have operating margins 30%-50% higher than their
industry peers.
What this means is that taking the time to appreciate employees pays huge
dividends on your bottom line. Recognition boosts employee engagement,
which then increases productivity. When you add inspiring employees to do
their best into the mix, productivity skyrockets:
If satisfied employees are productive at an index level of 100, then engaged
employees produce at 144, nearly half again as much. But then comes the
real kicker: inspired employees score 225 on this scale. From a purely
quantitative perspective, in other words, it would take two and a quarter
satisfied employees to generate the same output as one inspired employee.
–Eric Garton and Michael Mankins, H arvard Business Review
Giving employees the right feedback to know which of their efforts are most
appreciated helps everyone better understand the impact of their work and
what to prioritize. This doesn't mean you need to give a standing ovation to
every employee who made it to work on time, but it's crucial to let everyone
know exactly how (and how much) each of their contributions move the
organization forward.
Morale
Employee morale is the glue that holds your company together. It’s a crucial
part of any organization, and should be a top concern on your priorities list.
With low morale, nearly every aspect of an employee's contributions will
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suffer. High morale, on the other hand, tends to inspire greater productivity,
creativity, and overall satisfaction.
What’s the difference between employee morale and e mployee engagement?
Although they’re related, they’re not the same thing. Employee morale is
typically associated with feelings of well-being and job satisfaction.
Meanwhile, here’s how Bonusly co-founder and CEO Raphael
Crawford-Marks describes employee engagement:
“Engaged employees are typically described as passionate, committed, and
enthusiastic—not just about their job, but the company they work for and its
overall mission and goals. An engaged employee is aware of both immediate,
tactical goals, as well as long-term, strategic ones, and proactively works to
advance both.”
It’s a subtle difference, but it’s there. Engaged employees may be satisfied
with their jobs, but contented employees are not necessarily engaged with
their work. These workers risk losing any emotional connection to their work
that they may have had, and their organizations suffer from poor
productivity. These are the clock-watchers and the hangers-on. They can
become dead weight for the company. Thus, having high employee morale is
the foundation upon which employee engagement can grow and thrive.
So how do you build that foundation? A recent SHRM survey found that 65%
of employees say respectful treatment of employees at all levels is a very
important contributor to their job satisfaction. Because respect can be
shown in many ways, personalized approaches make a considerable
difference. For example, frequent and visible praise promotes inclusion and
a sense of belonging at work that increases job satisfaction.
Along those same lines, R eward Gateway study revealed that, “[a]lthough
more than 22% of senior decision-makers don’t think that regular recognition
and thanking employees at work has a big influence on staff retention, 70%
of employees say that motivation and morale would improve 'massively' with
managers saying thank you more.”
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That’s why you feel great after a high-five. 👋
Purpose
Recognizing employees’ work and their impact on the team encourages a
sense of purpose. This type of transparency helps employees understand
how their work ties into the bigger picture of the company and how their
contributions matter. Purpose is important, and 5 7% of younger Americans
said that they wanted to be part of something that was enjoyable or made a
difference in society.
As humans, we’re motivated by knowing how our work helps others, and
recognition is a key part of that. This idea applies anywhere from working
toward a company’s broader mission to promoting cross-team collaboration.
It’s easy to get caught up in day-to-day work. Frequent and visible recognition
reminds everyone that they’re all working toward a shared goal.
Communicating clear company missions and values through public
recognition also fosters a sense of community, which helps keep employees
engaged and alleviates some uncertainty about roles and responsibilities. By
recognizing someone for embodying company values, you develop your
organizational culture and reinforce objectives in an intentional way.
Next steps
Building a culture and environment based on employee recognition
improves each of these important areas, but it's crucial to understand how
the foundation fits together before starting to build the rest. In our next
section, you’ll learn about how recognition can take shape at your
organization.
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We also invite you to learn more about Bonusly’s employee recognition and
rewards platform and j oin us for a demo to learn more about how you can
start building a recognition-rich organizational culture.
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3. Types of Employee Recognition and
Rewards
Recognition and rewards will vary from organization to organization, and
how you appreciate employees will depend on your unique company needs.
Your team could be motivated by a company-sponsored outing, a thoughtful
email, or a gift card to their favorite store. It’s up to you to understand how to
most meaningfully appreciate your team members and with what rewards.
Types of Recognition
Bonuses
There are many types of bonuses, ranging from small to large.
Small bonuses, sometimes called spot bonuses because they’re given “on the
spot,” are small monetary rewards given frequently by one colleague to
another in recognition of a valuable contribution. Although small bonuses
can be given by managers to their direct reports, they can also be given by
other colleagues, and even from a direct report to a manager.
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Small bonuses provide several unique benefits. Like spot bonuses, staff
recognition in the form of bonuses can be given in the very moment that a
valuable contribution is made by an employee. Employee recognition given in
the moment has the greatest potential for impact, because the action is
rewarded almost immediately, when it’s top-of-mind.
Because these bonuses are small by nature, everyone can give them out
often, providing multiple positive instances of employee recognition without
dramatically altering an employee's compensation.
Their on-the-spot nature dictates that spot bonuses are given at an irregular
cadence, in contrast to annual and quarterly bonuses.
Written praise
Writing thank-you notes can not only show appreciation, but is tangible proof
of an employee’s contributions. Written praise is a flexible method of
recognition and notes of praise are almost universally appreciated, whether
written or sent as electronic communication.
Verbal praise
Verbal praise is perhaps the oldest, and longest-standing form of
peer-to-peer recognition in the workplace. Verbal praise is given by
colleagues, generally in an ad-hoc fashion, in recognition of a staff member's
valuable contribution.
Although nearly always informal in nature, verbal praise is occasionally
solicited as part of a formal staff recognition program.
When should recognition be given?
We’ll cover the characteristics of effective recognition in a later section, but
here’s a sneak peek of one of the main components—timeliness. It’s
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important to recognize employees at key moments, whether that’s right after
a project has been completed, on their work anniversary, or even their
birthday.
Events
Employee’s first day
Should you recognize employees before they even start working? We think
yes. Besides, we think the stressful process of interviewing, negotiating, and
making it through first days or weeks definitely deserves some kudos! The
benefits here are twofold: new employees feel welcomed into the fold right
away, and existing employees are able to break the ice immediately.
Birthdays
Birthdays are a special occasion for a majority of people. If you’re in a 9-5 job,
chances are employees will be spending a good amount of that special day in
the office. While everyone has different preferences around the level of
attention they’d like to receive, it’s not a bad idea to show them that they are
recognized and valued.
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Employee Appreciation Day
Employee Appreciation Day is a semi-formal holiday founded by Bob Nelson,
a founding board member of Recognition Professional International. Over
the past 20 years, other companies have embraced the unofficial holiday,
paying homage to their employees on the first Friday of March.
As a low-key “holiday,” Employee Appreciation Day is a great opportunity to
recognize employees without the pressure of annual or quarterly reviews.
Celebrate Employee Appreciation Day with small company-funded events like
barbecues, office parties, or with fun decorations!
Milestones
Work anniversaries
Work anniversaries are one of the most common uses of modern employee
recognition, but they're often poorly executed. We consider work
anniversaries an e piphany moment, and they should be treated as such.
Reaching a work anniversary is a key milestone when employees often reflect
on their past, contemplate their future, and assess their well-being at their
workplace. So receiving a simple gift card or plaque can feel impersonal,
leaving an employee disillusioned about the work they put into the company.
A work anniversary should represent another year of a job well done, and
should be meaningfully recognized. It’s a great opportunity to thank the
employee for the specific impact they've made over the past 12 months and
over the course of their career. But don't just say, "You've made a big impact
this year." Explain exactly what the impact was, why it matters, and how
crucial their work is to the team, the organization, and the people it serves.
Project completion
It’s always a weight off the shoulders when a project is completed, launched,
or published, so this is also a great time to recognize all the work that went
into the process. Be sure to recognize team members in a timely
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manner––recognition has much more impact in the moment than when it’s
delayed.
Year end
A year end or annual bonus is financial compensation given to employees in
addition to their base pay. Annual bonuses are given once per year, usually
at the end of the fourth business quarter. They can be given for a multitude
of reasons, but are usually based on goals, either the performance of the
organization, the individual, or both. Depending on the organization or
industry, annual bonuses are sometimes expected as part of an employee’s
total compensation package.
Quarterly review
Quarterly bonuses are similar to annual bonuses, but are metered out more
frequently, on a per business quarter basis. Quarterly bonuses are most
commonly given as part of a heavily performance-based compensation
model. Sales organizations or teams are common users of the quarterly
bonus structure.
Building a successful recognition program
Now that you’ve got a solid understanding of what recognition is, why it’s
important, and how it looks, you’re probably curious about how to build your
own successful employee recognition program! In the next chapter, we'll
teach you how to do just that.
We also invite you to learn more about Bonusly’s employee recognition and
rewards platform and j oin us for a demo to learn more about how you can
start building a recognition-rich organizational culture.
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4. How Do I Build a Successful Employee
Recognition Program?
It’s no coincidence that many of the world’s most successful organizations
use e mployee recognition programs. As we covered in Section 2, when
recognition programs are used correctly, they can enrich company culture,
increase employee engagement, reduce turnover, and provide a fulfilling
employee experience.
Sound good? Good. Now, where do you start?
Well, you’re in the right place! 🎉
We’re experts at helping organizations introduce recognition programs to
their employees, and here are our tips for a seamless implementation
process.
● Develop a case for recognition
● Build a team of champions
● Understand the characteristics of effective recognition
● Follow recognition program best practices
Develop a case for recognition
Start by establishing a business case for an employee recognition program,
tying your expected project outcomes to desired business outcomes. Ask
yourself what problems an employee recognition program might solve and
how solving those problems contributes to business objectives. S how your
leadership team that the benefits outweigh the costs.
http://blog.bonus.ly/sell-recognition-to-leadership
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Be sure to familiarize yourself with the research-based benefits of employee
recognition and its effects on improved employee engagement, reduced
turnover, increased productivity, boosted morale, and purpose. Then crunch
some numbers! For example, you can use an e mployee turnover calculator
to determine how much your business will save using an effective
recognition program.
How much does a good recognition program cost to administer? It might
surprise you to learn that recognition programs don’t have to be expensive
to be effective. 81% of companies that include a recognition program in their
budgets spend less than 1% of their payroll budgets on these programs. You
should also account for the costs of any rewards.
You’ll also want to understand the hidden costs and logistics of homegrown
programs. Running to the store every now and then to buy gift cards for your
team of five and handwriting notes for each person might be relatively
simple to start, but when your team grows to 50 or more, these manual
programs can become unwieldy, requiring a whole new level of planning,
oversight, and consistency.
Fortunately, rewards and recognition software can integrate with existing
tools, automate rewards fulfillment, and even manage work anniversary
bonuses.
Build a team of champions
Once you receive buy-in from leadership, your next step is to find your team
of champions to help you implement the program. Seek out leaders who will
help conceptualize, promote, communicate, implement, and reinforce your
organization’s new recognition program.
When building your team, look for folks with the following characteristics:
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● Interest in the program
● Positioned as a team leader
● Knowledge of program benefits
● Ability to prioritize the program
● Positive track records
Program champions with these characteristics will be closest to the
heartbeat of the organization and will provide the most helpful insights.
They’ll also be in the best position to ensure program success.
Understand the characteristics of effective
recognition
Before implementing any employee recognition program, it’s necessary for
everyone involved to understand the characteristics of effective recognition:
● Timely
● Frequent
● Specific
● Visible
● Inclusive
● Values-based
Timely
Recognition is most effective when given in a timely manner. Unfortunately,
the association between contribution and recognition weakens over time.
Aim to give recognition as soon as possible to produce a clear connection to
positive behavior.
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Waiting to recognize a valuable contribution can result in faded impact of
that recognition and lost opportunities to encourage the same kind of
positive behavior. Too many employees only hear recognition at their annual
review.
Frequent
Frequent recognition translates into more engaged employees, stronger
business results, and lower turnover. Employees make contributions every
week, and failing to provide regular feedback about those contributions
increases the likelihood of individuals feeling undervalued in their role.
You don’t need to wait for a huge milestone or achievement to give
recognition. It’s important to celebrate the small victories, and research
backs that up. Take this stat into account: 71% of highly engaged employees
work in organizations that recognize employees at least once per month.
Specific
Why is it important to call out and recognize specific contributions?
Specific recognition helps employees understand exactly which of their
actions contributed to their team’s goal. Being specific means acknowledging
the details and context of a task or project, not just a “Thanks, great job!”.
When feedback isn’t specific, it risks coming across as insincere or unclear.
Naturally, this type of praise should occur soon after any contribution.
Remember: a quick “great job last month” isn’t useless, but it denies the
recipient some crucial feedback.
Visible
Private recognition can be effective, but public recognition offers several
additional advantages. For one, being recognized publicly magnifies its
impact. Sharing praise with a wider audience helps everyone learn about the
work being done across the organization, facilitating collaboration and
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highlighting solutions that might otherwise go unnoticed. It also gives other
colleagues the opportunity to join in the recognition, reinforcing positive
behavior.
Visible recognition provides examples of commendable behavior, actions,
and contributions that others can repeat. Additionally, that visible
recognition can bring to light innovations or challenges that spur valuable
discussions within teams.
Inclusive
Inclusive recognition helps foster a sense of equity, belonging, and
psychological safety for all employees. Showing employees they belong
should be a top priority for leaders, and understanding the actions and
people who are recognized means understanding what is really valued in
your culture. Who is recognized most frequently and for what?
A powerful way to ensure more people are recognized is to diversify the
parties responsible for giving recognition. Recognition from all levels
provides more opportunities for contributions to be appreciated.
When employees are empowered to recognize peers, praise occurs more
frequently while also carrying more context and nuance. A 360-degree
recognition program with a foundation of peer recognition provides a better
understanding of what a whole team and organization considers valuable
while removing the bottlenecks imposed by top-down recognition and
breaking down team siloes.
Values-based
Values-based recognition encourages teams to work toward the same vision.
When sharing positive feedback, think about how a contribution lines up with
your values. If your company culture is really based on a shared set of values,
reinforcing those values through praise should be a deep-rooted habit.
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Recognition based on values ties tangible actions to the foundation of an
organization. It becomes more meaningful and helps a team work toward the
same goal, reinforcing positive activity. Can you recall your own
organizational values?
Follow recognition program best practices
Define clear recognition program objectives and criteria
Employers should be clear about what behaviors or actions they’d like to see
from recognition programs and how they impact business objectives.
Whether you’re starting a new employee recognition program or updating an
existing one, challenge your team to answer important questions.
What types of behaviors will be rewarded? Reference your business
objectives and decide which behaviors to incentivize, and remember that
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effective recognition is tied to organizational values! Reward deliverables
completed on time if lateness is a challenge, and applaud
cross-departmental collaboration if your organization is stuck working in
silos.
How should desired behaviors be rewarded? It’s important to know your
team and reward behavior accordingly. In general, praise should be public
and can be a great learning opportunity to the whole team. Tying that praise
to a tangible reward or experience can remind employees of their
achievements long after praise is given.
How often should recognition occur? Effective praise is frequent, so it’s
important to regularly recognize your team. Giving recognition on the spot is
a good habit, and reiterating that praise during t eam meetings, especially for
special achievements, can amplify the effects of recognition. Don’t forget
about milestone events, like birthdays, work anniversaries, and Employee
Appreciation Day.
Who should recognition come from? Recognition has traditionally been given
top-down by managers. However, 360-degree recognition, coming from all
levels, is the most effective. In fact, peers are the top influence in driving
colleagues to g o the extra mile.
Use a multifaceted rewards and recognition program
Many employers assume that employees always want money instead of
non-tangible rewards, but research suggests that’s not necessarily true.
Research by Deloitte, for example, identified two different types of
recognition:
● Praise and emblematic recognition
● Token and monetary rewards
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They found that both types of recognition are important to employees, as
“this varied approach helps to constantly and frequently reinforce desired
employee behaviors.”
It might not seem intuitive at first, but imagine receiving a bonus without any
note or explanation. How would you know how to replicate the behaviors
that led to the bonus? You’d have no idea what you did correctly to earn
it—and how to avoid doing something incorrectly. Remember to be specific!
Similarly, it’s beneficial to understand the difference between e xtrinsic and
intrinsic motivation in the workplace. Whether the praise or the monetary
reward is the primary form of recognition, both approaches complement
each other.
Give employees voice and choice
Make it fun! Don’t start with the assumption that you already know what
everyone wants. Engage your employees to better understand the types of
rewards they’re most interested in.
Once you’ve drafted i deas for creative rewards, it’s easy to get employee
preferences by sending a survey and asking everyone to rank the options.
Giving employees a say in rewards redemption can increase their personal
investment in the program and make recognition even more enjoyable.
Brainstorming unique rewards can also be a fun team activity!
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Think about how rewards will be distributed, as well. If you offer gift cards as
rewards, make sure employees will use and enjoy products or services from
those businesses. C onsider these custom reward best practices before
committing items to your catalog.
Do your employees want to share their rewards with the world? Offering the
right rewards can help you win employee advocates. It’s the transitive
property of rewards: employees get something they want something they
can leave the office with and share with their family and friends. The public
recognition they received at work leaves the office with them in its own
unique form.
Ensure an effective launch and implementation
When introducing a new system or approach, it’s important that
communication around the l aunch is clear and the implementation is as
painless as possible. Any team participating in a new program should be
clued in on that program’s purpose, how to use it, and when it will take
effect. Think about the following factors when rolling out your program:
Align your organization on recognition
Leadership should be aligned on the program’s purpose, especially when
rolling out the program. Teams and employees may start to feel jaded if no
one is taking it seriously. Imagine being on a team where the manager
withholds recognition and doesn’t think it’s important, while watching the
team next door receive reward after reward—it would be demoralizing.
Recognition should also be aligned with organizational objectives and goals;
creating recognition programs around behaviors that the business doesn’t
value leads to confusion and may have the negative impact of directing
energy away from company goals. Consider it a reinforcement of existing
priorities.
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Make recognition programs visible
Recognition programs should be highly visible within organizations that truly
value recognition, right? Employees should see when their peers are
recognized, and data from that recognition should be visible for teams to
help improve communication.
Note that different types of workforces may prefer different methods of
communication. For example, front line employees at a manufacturing plant
may prefer to get important updates via s pecialized kiosks, administrative
staff at an accounting firm might prefer email, and employees at a tech
startup might prefer a collaboration tool like S
lack.
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Plan for a seamless, multi-pronged, and consistent delivery of your
program
With current technology, how recognition is delivered is another critical
element. How will recognition or rewards be delivered in your organization?
Embed it in your processes. If you regularly communicate through a
collaboration tool like Slack, find a program that integrates with it. Use
existing team meetings to reiterate recognition where appropriate, and
consider using an automated system to fulfill rewards.
More than one method of communication should always be used to
introduce the program. Thinking about announcing the program at an
all-hands meeting to share a strategic overview followed by followed by an
organized team training session with practical guidance.
Managers should also communicate with their teams in smaller team
meetings about the program and discuss the initiative. Since not all teams or
individuals work in the same location, managers should include remote
workers via video conferencing to share program information.
Measure your recognition program’s effectiveness
Recognition programs impact many different areas of an organization. Using
a measurement system like employee net promoter score can provide a
useful framework to measure the effect of recognition on factors like
employee engagement and morale.
Successful recognition programs should positively impact other factors like
performance, productivity, and turnover. You can use a number of ways to
analyze changes in those areas, like s urvey tools, brief interviews or feedback
sessions, and p
erformance management software. Gather feedback on a
regular basis, and use it to adjust your program where necessary.
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To take it one step further, use data from your recognition program to
inform other business decisions. Research social connections to determine if
any team or individual is isolated, review how teams are connected, and
facilitate collaboration where needed. Are there teams with outstanding
behavior? Study them to understand how to take those learnings to other
departments.
Revisit and revise regularly
No program is perfect, and even excellent programs should be
well-maintained to remain effective. Soliciting program feedback quarterly
can help you determine whether or not employees still value the types of
rewards they’re receiving. Leadership feedback will provide further insight
into whether or not the program is impacting job performance and business
outcomes in a positive way.
In addition to evaluating the program, you should understand which
outcomes are needed most. An annual engagement survey will help you
identify the company’s primary opportunities for improvement based on
your company’s ever changing employee population.
Once you’ve collected actionable data, make improvements where possible.
For any desired improvements that you are unable to make, be sure to
explain why (e.g. timing, cost, redundant to other initiatives, etc.). All
organizations aren't the same, and recognition programs should be tailored
to your team. As you develop your program, consider how much admin time
is available to administer it and how your employees work.
Read more about employee recognition best practices in our article The Art
and Science of Recognition: 5 Best Practices for Employee Recognition
Programs.
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Implementation
Implementing a successful employee recognition program might seem
imposing, but by following the above advice, you can simplify and streamline
your efforts. In the next chapter, we'll discuss aspects of tools that can make
implementation even better for your team.
Employee recognition is a powerful way for any organization to succeed, and
using a specially-designed recognition program like B onusly can be an
extremely effective way for teams to feel valued, perform better, stay
engaged, and more. We invite you to t our the platform and join us for a
demo to learn more about how you can start building a recognition-rich
organizational culture.
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5. Employee Recognition Tools and
Resources
Successfully introducing the right kind of recognition tool can be the critical
factor in differentiating your organization. Because of the s trategic benefits
of recognition, teams around the globe are increasingly using technology to
power their recognition programs, integrating recognition into their culture.
What makes for a good employee recognition tool? It should:
● Meet your team where they’re at
● Provide rewards
● Share people analytics
● Scale easily
Meet your team where they’re at
An effective recognition tool should be able to easily slip into your team’s
workflow. Start by thinking about where your team works, the devices
available for work, and the software used for collaboration. In the modern
workplace, teams are frequently located in different places, keep different
office schedules, and often see each other intermittently.
If your team is centrally located in an office, a highly visible dashboard could
be a great tool. On the other hand, a distributed team that travels frequently
might prefer a m obile app with push notifications.
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Integrations
Easy ways to bring recognition tools into your existing workflows are through
integrations. Pay special attention to tools that offer integrations with your
collaboration tools HRIS systems, SSO solutions, and other areas.
Collaboration Tools
Slack is a useful tool for both real-time and asynchronous team
communication. It also includes file sharing, contextual search (to help find
important conversations and files anytime), and a huge list of app
integrations. S lack's Bonusly integration makes it an excellent tool for
employee recognition by allowing users to broadcast recognition activity to
their team, and even give small bonuses without breaking their workflow.
We love Slack. It's our go-to communication and collaboration tool for nearly
everything, and we frequently use it to give recognition.
Every time someone receives a small bonus, the entire company sees it pop
up in our #recognition channel. Since we all practically live in Slack, it's a
highly-visible way for everyone to see all the great work that happens on a
daily basis, no matter which location they're working from.
Other great collaboration tools include M icrosoft Teams and Google
Hangouts Chat, which also have Bonusly integrations.
HRIS integrations
Your HRIS system includes valuable data about your employees, from their
birthdays to organization connections to contact information. Many
employee recognition tools can sync data between systems to reduce the
administrative effort required to implement and maintain programs.
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When looking for a solution to help manage your team accounts
automatically, consider systems like BambooHR, Namely, Workday, Zenefits,
or ADP. Bonusly has i ntegrations for these and more.
Other integrations
Zapier is a powerful platform that allows you to easily connect the different
apps you use to automate tedious tasks. Zapier's Bonusly integration allows
teams to integrate recognition into Zapier’s catalog of over 1,500 different
apps, including Hubspot, Small Improvements, and Asana. Here are some
templates for inspiration.
Screens
From big to small, think about the screens your team works on.
We have offices in New York City, Seattle, and Boulder, CO. To make sure
we're always aware of the great work everyone is doing despite the distance
that separates us, we project a dashboard displaying all the recognition going
on throughout the day. It's impossible to miss, and there's something special
about seeing your achievements posted in a larger-than-life format.
For our smallest screens, we use i OS and Android mobile apps to make sure
we don’t miss recognition in action.
Usability
When you think you’ve found a tool that seems to fit the bill, test its usability.
Is the experience intuitive across platforms? Think about the different people
who will ultimately use the tool on a regular basis.
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Provide rewards
Modern employee recognition is powerful, but if your recognition tools don’t
offer rewards, your field of dreams could be nothing more than a cornfield.
Effective employee recognition tools allow users to recognize each other with
praise backed up by real-world rewards. Our research has shown that even
small rewards with real-world value encourage users to give recognition
more frequently and by more people than.
According to D eloitte’s 2018 Global Human Capital Trends report,
“employees respond favorably to agile compensation programs that provide
raises, bonuses, or other incentives more often than the traditional
once-a-year rewards system.” One study even “found that employees who
receive regular small rewards, in the form of money, points, or thanks, are a
staggering eight times more engaged than those who receive compensation
and bonus increases once a year.”
In order to enjoy all the benefits of frequent recognition (i.e., increased
employee engagement and retention), you’ll need to encourage your
employees to engage with your recognition program and make recognition a
habit. The promise of rewards can be enough to get your employees over the
hump that adopting new tech tools so often presents. By linking recognition
to rewards, you can actually facilitate more meaningful exchanges.
Learn more about the link between recognition and rewards here: Accelerate
Your Employee Recognition Program with Meaningful Rewards.
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Share people analytics
How do you gauge the success of your staff appreciation program? By
measuring it! 📐
There are a number of great tools available to help you determine the
effectiveness of any recognition program you implement. They can provide
insights into recognition trends in your organization and help you learn
where team members excel with detailed analytics and reporting.
Look for tools that allow you to easily see team engagement in aggregate as
well as which employees stand out as recognition and engagement. Use data
to understand team dynamics, who’s recognized most frequently, and what
they're being recognized for.
Bonusly Analytics
Bonusly Analytics uses the rich social data produced by the giving of small
bonuses and transforms it into useful data, predictive metrics, and timelines.
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It includes organization graphs, participation charts, and word clouds, as well
as information on recognition by team, location, and company values.
Bonusly Analytics can help you to see which employees are standing out as
excellent contributors, and which employees might need extra support to
help them succeed. You can also measure the effectiveness and overall
engagement of your staff recognition program.
Officevibe
Officevibe is another great tool for measuring employee sentiments. You can
send weekly surveys to measure employee satisfaction and engagement,
while offering useful and actionable advice on ways to improve it.
Officevibe's Slack bot, Leo is a great way to keep that communication channel
open and present without disrupting your team's workflow.
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Scale easily
Running a recognition program requires time and effort from your team. It
includes plenty of planning, oversight, and consistency for everyone involved.
Fortunately, tools can help your team easily scale recognition programs.
Look for tools that can help you onboard new team members quickly,
require little maintenance, automate rewards redemption, and provide
strong integrations. Finding the right tool will help you minimize the
administration time needed to build a recognition-rich culture.
To make things even easier, look for tools that can manage work anniversary
bonuses, b irthday bonuses, and other a
utomated or manual awards.
Employee Recognition Resources
There are many excellent information resources available to help you
improve all aspects of organizational culture, from employee recognition to
employee engagement. Here are a few great reads:
Bonusly Blog
The Bonusly blog covers a range of useful topics from creative employee
reward ideas, to employee engagement and inspiring employee loyalty. You'll
find engaging infographics and regular interviews with industry experts and
culture leaders who share their insights on a range of important topics.
Officevibe Blog
The Officevibe blog is a great resource. It includes entertaining, yet
educational articles and infographics about employee engagement, company
culture, and how to improve both. Officevibe's blog also features 'culture
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talks,' where industry thought leaders share valuable information over video
interviews.
When I Work Blog
When I Work is a useful tool for scheduling and communicating with hourly
employees, but the W
hen I Work blog covers a huge range of topics. You can
learn new ways to develop better people management skills, recruit and
onboard new employees, and manage millennials. The WhenIWork also
provide some excellent guides for small business HR.
TLNT
TLNT is a publication focused on HR news and insights. There are articles
ranging from HR basics, to more complicated subjects like onboarding
techniques, narrowing workforce skills gaps, and improving employee
retention.
Next Steps
Now that you know what to look for in employee recognition tools and have
a few resources to bookmark, we invite you to take a tour of Bonusly and
schedule a demo if you’re interested in learning more.
When you’re ready to learn about unique examples of employee recognition
in action, take a look at o
ur guide’s next section.
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6. 12 Unique Examples of Employee
Recognition in Action
Now that you have the tools you need to build a culture of appreciation, it's
time to get started.
It's not always easy to come up with creative ways to recognize and reward
your teammates for their great work, so we put together a list of unique
examples from some of our favorite companies across the globe.
Just like the people and contributions they're celebrating, these recognition
techniques are unique. Most of these examples are not complete strategies
in themselves—they're part of a larger strategy incorporating the k ey
characteristics of effective employee recognition:
● Timely
● Frequent
● Specific
● Visible
● Inclusive
● Values-based
Andrew Schrader | Chobani
Employee recognition program Bonusly
Everyone gets caught up in their day-to-day work, which is why it’s great to
have B
onusly: feedback and instant gratification never get old.
When I receive a bonus and I wasn’t expecting one, I get all cheesy about it.
There’s this thought that runs through my head: “Oh, wow, I implemented
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this project and I bug everyone to participate, so of course I know it’s
important, but it still feels good to receive a bonus!”
Monthly emails to highlight praise
We send a “This Month on Bonusly!” email to managers to promote an
ongoing culture of recognition and encourage them to continue recognizing
their direct reports. Everyone’s participation is meaningful.
Emil Shour | SnackNation
Make it personal
I've always valued how our CEO recognizes our team on work anniversaries
and birthdays. He'll write a hand-written note thanking us for the hard work
we put in each day and highlighting some of our recent achievements. Hand
written notes are an extremely underutilized form of appreciation, but they'll
never go out of style.
Crush it call
Each Friday afternoon, our entire team comes together to recognize another
team member's hard work during that week. We go around the room stating
who we want to "Crush," and also one thing we're grateful for.
I think this tradition has been especially important as our team has grown.
When your company is only about 30 people, you usually know what
everyone else in the company is working on. But once you start approaching
100 people, the overall interdepartmental interaction goes down a lot.
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So the "Crush It Call" has been an important way for people to learn about all
the amazing work people from other departments are up to. If you want to
see a quick video of one of our Crush It Calls, check out this post (under #15).
Sançar Sahin | T
ypeform
At Typeform, we have a kind of internal play book with a list of values and
guiding attributes we try and follow. It helps us maintain a humble, friendly,
and ultimately more human environment.
Spontaneous applause
One of the things on the list is to "celebrate with spontaneous applause". It
sounds a little cheesy and sales-y but it's actually a nice Typeform tradition.
Whenever someone does something noteworthy—however big or
small—anyone can start a round of applause. The whole office joins in. The
beauty is that most people have no idea why they're applauding, but the
person receiving the applause does. It's a nice, momentary break for
celebration.
Stephen Milbank | B
utton
Personalizing appreciation
Everyone wants recognition for their contributions to the company, but not
everyone feels recognized in the same way. At Button, we have each new
employee fill out an orientation survey on their first day.
One of the questions we ask is, tell us about a time you felt appreciated for
your work. This provides the management team with insight into how to
make sure all Buttonians are able to be recognized in ways that they feel
appreciated.
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Based on this information we have implemented different manners of
recognizing our team, some very public and others more private.
Nemonations
“Nemonations” is our large format, company-wide recognition for going
above and beyond expectations.
Each Friday at demos, team members can “nemonate” their deserving
colleagues who went the extra mile that week and we pass around a stuffed
Nemo (of Disney’s Finding Nemo fame) to the recipients.
Giving props
For smaller, everyday props, we have a kudos system focused on our
company values. Team members are encouraged to recognize their
colleagues who exemplify the values in practice. Kudos are distributed in
Slack and are also announced at Demos at the end of each week.
Ultimate hiring challenge
Button is a collection of people who thoroughly enjoy a challenge.
Competition is often our most successful motivator for voluntary tasks, like
recruiting.
To recognize Buttonians for helping to build our team, we have a quarterly
competition known as The Ultimate Hiring Challenge.
We have one winner each quarter and the prize is individually tailored to
their passions—be it a month’s supply of unlimited burritos or
Hamilton-themed SoulCycle sessions, we make sure the winner feels
appreciated for her contributions.
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Alexis Croswell | Culture Amp
Props bot
At Culture Amp, People Scientist Chris Barrell came up with the idea of
creating a S lack “props bot” from scratch for peer-to-peer recognition. He
says, “The idea for the Props Bot arose from wanting to publicly thank and
recognize some of my colleagues. We already had a public slack channel for
kudos but it was more customer orientated. When you wanted to give thanks
and recognition to a fellow employee, where did you do it?” He realized that
there was an opportunity to create a system for documenting and sharing
employee recognition and praise. Chris and a small group of Campers
created the Culture Amp Props Bot, which has given over 3,000 props since
its inception in 2015.
Analiese Brown | CampMinder
Each person on our team believes in and cares about why we do what we’re
doing – and, just as importantly, how we go about doing it. We’re making it
easier for camps to make positive impact, and we do it in a way that’s aligned
with a set of core values rooted in the camp experience: Put Team First, Find
a Better Way, Be Admirable, Own It, Give Joy, and Wonder. All of the
company’s people-related processes – how we hire, promote, reward, and
recognize team members – are based on these values, creating a culture
where “performance” is synonymous with living our values.
Love Leafs
Because these values are so central to our culture, we reinforce their
meaning by encouraging a culture of recognition. During our monthly Last
Thursday meeting (our version of an All Hands meeting) each team member
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has the opportunity to recognize another team members for embodying
CampMinder’s core values by presenting a “Love Leaf.” Love Leafs are then
added to a customized tree decal to create a visual repository of team
members’ commitment to CampMinder’s core values. At the end of a
calendar year, Love Leafs are collected and entered into a drawing, with the
winner eligible for a prize, customized to that particular person's interests
and goals. We sent last year's winner on a bucket list trip to Peru! On top of
the Love Leaf program, we encourage employees to recognize each other
spontaneously and organically, either face-to-face or via Slack.
Chloe Oddleifson | D
ribbble
Celebrity shout-outs
As a fully-remote team, we've had fun getting creative with how we recognize
achievements, accomplishments, and when someone goes the extra mile to
help someone out. We integrated Bonusly with Slack, which makes it super
easy for us to give bonuses and keep recognition visible, but it's really the
personal touches that make recognition all the more meaningful and
effective. We love creating extra-special rewards that are specific to our
team's unique culture. For instance, we use Cameo to get celebrity
shout-outs for our teammates that are funny, unexpected, and
memorable—Rebecca Black, Sean Astin, and Flavor Flav have all made
appearances at team meetings in the past year!
Start building a recognition-rich culture
With those points in mind, you can implement your own unique and creative
employee recognition ideas, and start building a recognition-rich
organizational culture.
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Try employee recognition with Bonusly
At Bonusly, we use peer bonuses to celebrate success and show appreciation
for our teammates' contributions all throughout the day.
Every month, users get a Bonusly allowance.
With that allowance, users can give small bonuses to their peers, direct
reports, and managers to recognize their contributions in real time. The
dollar value is usually small, but the recognition is invaluable.
Employees can redeem the points they've earned in our extensive digital
reward catalog.
The catalog is full of rewards options like gift cards and charitable donations,
but it's completely customizable. You can add custom rewards like extra PTO,
company-branded gear, or lunch with the CEO.
Each time someone is recognized by a colleague for doing something
valuable, the whole team is notified and is given a chance to join in on the
celebration.
We invite you to tour the platform and j oin us for a demo to learn more
about how you can start building a recognition-rich organizational culture.
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Bonusly is a fun, personal recognition and rewards program
that enriches your company culture and improves employee
engagement.
With Bonusly, everyone in your organization can publicly
recognize everyone else by giving small bonuses that add up
to meaningful rewards.
Learn more about employee recognition at bonus.ly
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