The Best Way to Reward Employees

Ask Workers What They Want in Their Recognition Program

Feb 27, 2009

Wondering how to reward employees? Try asking them.

There is a long-running debate about whether employees prefer to be rewarded with a financial gift or if they prefer praise. And while most employees would probably say they like both – at the same time – there are methods that employers can use to determine the best way to reward employees.

The importance of workplace reward and recognition systems cannot be overlooked as they serve to acknowledge and motivate employees. In fact, according to an August 2008 Gallup poll employee workplace satisfaction ratings have increased over the past ten years. Of those surveyed, 45 percent indicated they were completely satisfied with the amount of recognition they receive, while in 1999 only 38 percent were completely satisfied. In addition, 35 percent of respondents in both years indicated they were somewhat satisfied. So overall, employees are more satisfied with the amount of recognition they currently receive than employees were ten years ago.

This may mean more employers are doing things right while they are doing the right things.

Doing Things Right: Creating a Reward and Recognition Program

Linda Harris, President of Valencia-based human resources and management consulting firm JorgensenHR, says, “Reward and recognition programs can work well if properly designed.” In fact, Linda indicates that key elements of a good program include:

Linda warns against tying incentives to “things such as good attendance or positive attitude. These are standards that employers expect when they hire someone.” Instead, incentivized goals should be tied to the company’s vision, values, and objectives and in Linda’s words be “realistic, measurable and achievable.”

One way of using monetary reward and recognition programs is to rethink the use of merit increase programs which tend to encourage an entitlement mentality. Incentivizing employees through a variable pay program based on rewards for meeting predetermined goals encourages workers to focus on actions and outcomes that bring true benefit to the organization.

Doing the Right Things: Asking Employees What They Want

What many employers fail to keep in mind when developing reward and recognition programs is involving employees in the creative process, by allowing employees to participate on the front-end development of the program and the associated rewards. In addition, once the program is designed and ready for implementation, it is important to communicate the details to all employees.

Involving employees from the start creates buy-in and empowers employees with a sense of control over the program making it more likely that they will respond positively when they receive a reward.

Reward and recognition programs are an important part of the work environment. Asking employees how they would choose to be recognized and rewarded is an important first step in creating a viable, worthwhile program.

The copyright of the article The Best Way to Reward Employees in Human Resources Management is owned by Deborah S. Hildebrand. Permission to republish The Best Way to Reward Employees in print or online must be granted by the author in writing.