While salary, financial perks and benefits play a vital role in attracting top talent, their retention in the organization depends on the effectiveness of the employee rewards and recognition program to an extent – how their efforts and contribution are recognized and rewarded.
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.
Employee recognition needs to be timely and in the right way to get the desired results in terms of improved performance and higher engagement levels, which is why organizations need to adopt a policy of more effective and spontaneous recognition.
Hence it is our recommendation that awards especially those in the category of spot awards should be given based on the immediate achievements and not the past track record of the employees. Awards should be treated as awards – it absolutely okay to reward underperformers for their achievements if they meet the criteria!
Whether the winner takes all phenomenon is fair or not is the question to be asked. It seems only logical that the highest performing employees would end up getting the maximum recognition and rewards. The caveat to this is that it might demotivate other employees who are possibly average performers or borderline cases.
All said and done, recognition plays an integral part in employee engagement no matter how it is executed. At the end of the day, employees feeling happy is what matters most whether is a pat on the back, a trophy, a shopping voucher or a trip to the Bahamas!
The employee of the month is a recognition given to an outstanding performer. It may be in a form of gift, Gift certificate or a certificate with Thank you note. Some organizations have a wall of fame and the picture and name of the outstanding performer are put up there.
Taking a balanced view of things; while in the short run it might make sense to go ahead and build your own employee rewards and recognition tool especially if you have the available resources, but in the long run, it might not turn out to be such a wise investment.