Is your churn rate higher than average?
If yes, then you know that training replacements can be costly. That’s why it’s crucial to lower churn and create an environment that promotes retention.
Of course, this is easier said than done. Your employees have different needs, goals, and dreams. Even with excellent compensation packages, your best workers may still consider leaving.
There’s one thing, though, that helps keep employees motivated – recognition. That said, let’s talk about types of employee recognition. We’ll also discuss how to use them to encourage employee loyalty.
Types of Employee Recognition and Rewards
The different types of employee recognition are formal and informal (structured and unstructured). Others also categorize their programs based on who gives out and receives awards. These include peer-to-peer recognition, leader-to-team-member recognition, and employer-to-employees recognition.
Formal or structured employee recognition methods are official and ceremonial. These could be yearly, quarterly, or monthly reviews. Other examples include years of service or retirement recognition, and so on.
Because these awards are expected, they can help drive long-term dedication. Meanwhile, informal or unstructured recognition programs can be flexible and frequent. Tip: Training managers to be generous with verbal praise can be pretty cost-effective.
Tips for Implementing Employee Recognition Programs
Are you sorting through employee rewards and recognition ideas? Don’t worry too much about going over budget. Remember, you don’t have to spend lots of money to motivate employees.
Try setting up a social media account, allowing employees to praise their peers. If you can spend a bit, you can opt for a system that lets recognized employees earn points to exchange for prizes. Some employee rewards platforms make this easier, so be sure to check out your options.
Another thing you can do is provide supervisors with recognition toolkits. These will allow them to reward individuals and teams that perform well. You can also use your company’s anniversary or any milestone to give out custom awards.
Beyond Employee Retention: Other Benefits of Employee Recognition
The right employee recognition program can help you attract top talent. It can also improve company culture and build inclusion.
If you plan to hire young talent, you should know that recognition is a top priority for millennials. The same applies to zoomers or Gen Z’ers.
A well-implemented employee rewards system can also affect your bottom line. After all, the better the relationship is between leaders and employees, the more productive everyone will be.
Lastly, employee recognition helps workers feel a sense of belonging. You can’t expect employees to give you their best effort if they’re being excluded at work.
Showing Appreciation to Your Greatest Assets: Your Employees
Now that you know the types of employee recognition, do you need more tips and ideas on employee rewards and benefits? Don’t forget that it’s best to recognize workers formally and informally to keep them motivated.
For more advice on employee recognition, be sure to check out our other posts. We also have articles on boosting employee engagement, so don’t hesitate to browse the rest of our site.