Money, a day off, or a well-timed compliment? - What forms of recognition motivate employees the most?

When it comes to lack of recognition in the workplace, Peggy's character from Mad Men will resonate with many. The talented, creative, hard-working employee who struggles in the workplace, virtually invisible... Working without recognition isn't just hard on the individual, it's actually damaging to the whole organization. A lack of positive feedback can steer a company into a situation where communication is limited to expectations and criticism. And that is not good for anyone. The recognition system should therefore be well designed and even updated from time to time.

Design a 360 degree recognition system! 

Traditionally, recognition is given from the top down, from the supervisor, HR, manager/manager positions to the subordinates. For employees, this is a clear feedback that they are doing a great job (individually or as a team) and their performance is not only acknowledged but also recognized by their employer.

It is worth going even further and creating opportunities for colleagues to recognize each other's performance (e.g. through digital internal communication platforms such as recognition cards, congratulations, messages, emoji reactions, etc.) - either directly to the person concerned or publicly. 

Recognition can be delivered through a variety of channels depending on the internal communication tools of the company. In face-to-face meetings, company events, private or group emails, internal online platforms, written or video summaries, etc. The key is to ensure that it is delivered unhindered.

Avoid the pitfalls, get the success factors right!

When designing a recognition scheme, we are not looking for a one-size-fits-all solution. We are not all the same, employees may be motivated by different forms of recognition, so segmentation can help. Even a small internal survey can be useful to help management and HR better map the needs of employees.

A typical pitfall is when the recognition culture is limited to material rewards. It can be counterproductive in the long run, because it is the appreciation and human qualities that are being eroded. Moreover, employees may feel that they are entitled to y amount for x amount of performance in all circumstances - certainly not the right direction for either party.

Managers have a huge role to play in making the recognition system understandable and transparent. 

It is worth giving feedback on an ongoing basis, consistently and in line with performance. If employees understand the recognition system and its degrees (e.g. being praized by a supervisor, having their contribution highlighted in a public post, or receiving an award or gift at a quarterly review), there will be no question about what kind of recognition is associated with what kind of performance.

The engine of motivation: choosing the right forms of recognition

Peggy Olson's struggles in the American advertising industry in the 1960s illustrated quite clearly the many forms that recognition can take, from simple praise to promotion. Because recognition has a direct impact on employee performance and retention, the form in which outstanding work by teams and individuals is rewarded needs to be carefully planned.

Material recognition

Monetary recognition is certainly the most popular among employees. In addition to the jolly joker pay rise, various bonuses or annual, monthly, etc. financial awards through company schemes work well in the long run. Gift cards, trips, experience programmes can also be of great value and can be popular and motivating. They are also, of course, the most costly and their exclusivity can be counterproductive.

Non-material recognition

Non-material rewards and forms of recognition start with verbal or written praise for individual or team performance. These are essential, even in the short term, to ensure a healthy working atmosphere. Where there is a commensurate recognition of small daily successes, employees are more motivated to perform in the longer term.

Recognition can be a day off, and even home office or flexible working hours are now benefits that employees welcome. Career-enhancing forms of recognition such as extra training, promotion, new responsibilities, new clients, etc. can boost the engagement of more committed colleagues. 

Timing is key in recognition!

The time between performance and recognition is very important. If positive feedback is not given in a timely manner, the employee may rightly feel that he or she is not being properly appreciated and his or her motivation may be undermined. (This is why the recognition mentioned in the end-of-year management summary often does not work. They may seem like a delayed reaction, it is worth giving more direct feedback.)

Immediate messaging, or even a phone call, a personal congratulation should not be withheld immediately after performance even if you want to give other types of recognition (money, time off, etc.) later. It's also important to be balanced in terms of frequency (employee of the month, quarterly awards, etc.) and to distinguish between recognition of minor and major achievements. 

Employee satisfaction, motivation and the overall workplace culture reflect how the company handles recognition. We can also boost individual development and create a more positive company culture by recognizing, valuing and rewarding performance in proportion to its importance.