4 Key Benefits of Employee Rewards and Recognition Programs

Organization want to see some tangible benefits of employee rewards and recognition programs to justify their investment. Hence it is important for the HR team to demonstrate these program benefits on a continuous basis.

At HiFives, we have had long and deep engagement with our clients for their employee rewards and recognition programs. Based on this experience, we would like to list out a few of the benefits that should be aimed for or provided by employee rewards and recognition program in organizations:

What are the Key Benefits of Employee Recognition?

1. Employee Performance and Business Impact
Done in the right way, employee rewards and recognition can reinforce good performance by employees, which would have a direct or indirect impact on business metrics such as revenues, costs, customer satisfaction, etc.

For example, an employee who gets an award for achieving high levels of customer satisfaction is more often than not likely to continue to perform at the same or higher level. It might also motivate his peers to demonstrate higher levels of performance. The same would be true for an employee who is being recognized for cutting costs or driving innovation.

2. Alignment with Organizational Values
If executed well, employee rewards and recognition programs can deliver the desired behaviour from employees in sync with the organization’s core values and beliefs such as ethics, commitment, customer-centricity, passion or collaboration.

For example, an employee who has worked on an important project to meet a critical deadline might be eligible for an award under the category of commitment.

Another one could be that of an employee who might have resisted attempts by a third-party to secure a contract by trying to offer ‘personal incentives’ to the employee. In both these examples, the behaviour and the outcomes should be kept separate.

3. Positive Work Culture
The organization can drive specific behaviours such as innovation, process efficiency, punctuality, social awareness, etc. through employee rewards and recognition programs.

For example, employees can be incentivized for good suggestions on process improvement. Another example could be of recognizing an employee who has participated in a social initiative or sporting event outside the organization.

It is difficult to incentivize such behaviours through the traditional performance assessment and regular compensation system. Hence employee rewards and recognition could be a useful tool in the HR team’s toolkit to drive such behaviours.

4. Teamwork and Collaboration
Employee rewards and recognition can help create a positive atmosphere of celebration within the organization. It can help foster individual-level motivation and overall team spirit. Open recognition of employee achievements can go a long way in building a great culture of appreciation of each other’s efforts.

It is important for organizations to track the benefits of their employee rewards and recognition programs and to take action based on the gap between the actual and expected results.

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