Is Your Employee Recognition Strategy On Point #WorkTrends podcast

Is Your Employee Recognition Strategy On Point?

Sponsored by Kudos

The idea of employee recognition seems as natural as breathing. Who wouldn’t want to recognize a job well done? But the truth is, effective workforce recognition doesn’t just naturally happen. That’s why it pays to invest in a thoughtful recognition strategy.

Why a Strong Recognition Strategy Matters

If you follow leading workplace management trends, you know the case for recognition is compelling. For example, according to recent Gallup research:

  • Employees who say recognition is important to their organization are nearly 4x more likely to feel strongly connected with their culture.
  • When employees receive great recognition, they’re 20x more likely to be engaged than those who aren’t effectively recognized.
  • Among employees with successful recognition programs, 72% say their performance is acknowledged, even on “little things.”

Clearly, employers can’t afford to leave employee recognition and engagement to chance — especially in today’s complex hybrid work environment. But what exactly does an effective recognition strategy look like? Join me as I dig deeper with an industry expert on this episode of #WorkTrends…

Meet Our Guest: Karim Punja

Karim Punja is the COO at Kudos. As a CFA charterholder with over 15 years of experience at multiple global tech companies, Karim has found his sweet spot at Kudos. That’s because it’s a dynamic HR tech venture where data-based decisions are made at the speed of change, and everyone at Kudos is focused on improving the world of work.

With his business acumen and first-hand understanding of tools that enhance the modern employee experience, Karim is an ideal source for advice on how to develop a successful employee recognition strategy.

To learn more, check these highlights from our discussion…

Building a Recognition Budget

Welcome, Karim. Let’s begin with funding. Recognition programs should be planned, funded, and measured, just like any other business initiative. But how do we build a budget for this?

Well, a typical benchmark for a platform-supported program is 1-3% of payroll or of an employee’s salary.

But this is not necessarily a one-size-fits-all approach. You also need to consider your organization’s culture and recognition strategy.

What’s the split between hourly and salaried workers? Are your teams mostly remote workers or deskless workers? Plus, you’ll want to consider whether you’ll want to use a recognition platform to supplement income through rewards.

In addition, you may already be doing things you can consolidate into a recognition and engagement platform. For example, do you offer spot bonuses? And how do you manage birthdays and milestones?

Why Management Involvement is Key

What other elements should a recognition strategy include?

One of the most critical keys to success is getting managers on board early as stakeholders who take ownership of system adoption and usage.

We know this from analyzing our own clients. When managers are highly engaged with our system, monthly participation among non-managers is 3x higher than groups where manager engagement is low.

How a Recognition Strategy Creates Value

How should HR professionals communicate the value of employee recognition to senior leaders and others?

Measurement is an important attribute, because it speaks to the core philosophy that “you can’t manage what you can’t measure.”

With an employee recognition system, you can get measurable insights into employee wellbeing. And when you overlay that with engagement surveys, you can compare the data and see the impact of your culture over time.

I like to talk about the value of employee engagement metrics as a leading indicator of organizational health. Whereas surveys are more of a lagging indicator, because they provide a snapshot of sentiments that have led up to a particular point in time.

So, because a recognition and engagement platform provides real-time metrics and trends, it gives you a leading indicator of sentiment. This means you can use those actionable insights proactively, rather than reactively…

 


Learn More About How to Develop a Successful Recognition Strategy

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