Selecting an employee rewards system is a high-involvement decision just like buying a car. Hence, organizations need to proceed step-by-step with the decision-making by considering all possible factors to ensure that they select a system that best fits their requirements and budgets.
An increasing number of organizations have started realizing that the frequency of employee recognition matters for the overall success of their rewards and recognition programs and helps them maximize the business benefits from them.
Understanding the key elements of a perfect employee recognition program is the first and the most important step that organizations need to take in the direction of developing such a system that is effective in motivating their employees and driving business growth.
Lack of an employee recognition program can hurt an organization as it is one of the key elements of motivating and engaging employees. Hence, all organizations implement a robust employee recognition program in line with their business needs and expectations of their workforce.
This step-by-step guide on how to set up an employee recognition program is based on best practices from several organizations that have successfully implemented employee recognition programs. Each of these steps plays a critical role in laying a strong foundation for building a recognition driven organization culture that promotes innovation, performance and business growth.
Measuring success of employee recognition programs is critical to assess the return on investment in them made by organizations. It also helps in showing the genuine intent of the organization of improving these programs in the eyes of the employees, which in itself can prove to be a motivating factor for them.
The G.I.V.E. model of employee rewards and recognition aims to maximize the benefits of employee recognition for organizations; and help them create a positive work culture where talent can be nurtured through a deeply ingrained sense of collaboration, teamwork, and availability of equal opportunities.
There is a debate among HR practitioners that employee rewards and recognition programs should be targeted only at entry-level employees. However, as mentioned in this article, it is best to adopt a comprehensive employee reward and recognition system across all levels of the organization.
Most great employee reward and recognition systems are not established overnight but these basic steps can help to move in the right direction. These steps may need to be modified as per the unique requirements of individual organizations to get the maximum benefits.
Developing an effective employee rewards program is not as difficult as it may seem, especially if organizations were to follow the above-discussed tips to enhance the business impact of the program. An effective employee rewards program can help in engaging and motivating the employees, which in turn can give the organization a competitive edge,