7x7 EVP Framework, Part Two: Rewards and Recognition
Imagine that one of your colleagues has just been formally recognised for an outstanding achievement. The caveat is: they’re based in another country.
How would you go for a celebratory meal with them? How might you replicate their success elsewhere? And how should a sincere sense of celebration be shared across time zones? These problems may seem intractable. But that’s where your Employee Value Proposition (EVP) comes in.
In part two of our EVP Framework Series, we explore the importance of a reward and recognition strategy in EVPs — a systematic approach used to acknowledge employees for their achievements and contributions. We also outline three popular methods of employee recognition, followed by our seven steps to implement a strategy of your own.
Why rewards and recognition are important
Any company that wants to succeed in today’s dynamic environment should be finding effective ways to identify, motivate and retain talented people. One of the best ways to do this is through recognition — commending strong performance, achievement, and morale-boosting behaviour — and reward — to incentivise those actions.
One of the most important drivers of great work is recognition. Together with employee rewards, they can boost job engagement and satisfaction, motivating people to contribute to the company’s success. That engagement translates into productivity gains at individual and team levels.
But employees aren’t the only ones who stand to benefit from rewards and recognition. A comprehensive employee reward and recognition strategy underpins EVP.
It allows companies to create a positive work environment, one which reinforces company culture and values. It enhances outcomes by centering your employer brand as one where employees are genuinely valued.
In the same vein, an appealing rewards and recognition program can attract top talent. When new employees enter the organisation, they join (and become) individuals who are engaged, motivated and recognised — reinforcing the EVP and its desired outcomes.
How to recognise your employees
While there is no universally effective strategy for recognising any given workforce, you can make an educated decision about which among the many methods available will work best. These include ongoing feedback, formal recognition and rewarding extracurriculars.
Some employees respond well to feedback before, during and after a project. But ongoing feedback is essential for employee growth, development and job satisfaction.
Ongoing feedback matters to employees because it:
- Helps them understand their strengths and weaknesses
- Facilitates constructive criticism
- Promotes accountability and responsibility
- Increases motivation and engagement
- Supports professional development
While feedback provides a way to coach employees and show appreciation, sometimes a more formal approach is appropriate. Recognising individuals’ contributions fosters engagement, making them feel valued and significant.
Here are some outcomes you should expect to see:
- Provides clear expectations
- Supports career advancement
- Facilitates performance improvement
- Improves employee-manager relationship
- Provides a record of performance
However, recognition shouldn’t come only from supervisors or upper management. Peer-to-peer acknowledgement of individual successes can go far in building a culture of camaraderie through simple actions, such as vocalising appreciation for a job well done. Just recognise that some people prefer not to receive a public display of recognition.
Rewarding employees for engaging in extracurricular activities can have a positive impact on employee motivation, job satisfaction and general wellbeing, positively contributing to the workplace environment.
Rewarding extracurricular activities is valuable to employees as it:
- Recognises and values their interests and passions
- Promotes a positive work-life balance
- Encourages personal growth and development
- Enhances creativity and innovation
- Improves employee engagement.
EVP Framework: your reward and recognition strategyAn effective rewards and recognition strategy will promote employee engagement, motivation and performance and support organisational and talent objectives.
Here’s our seven-step plan to implement your strategy:
- Define the objectives. Clearly define the objectives of the rewards and recognition program, such as improving employee engagement, motivation and performance.
- Get input from employees. Ask employees for their input and feedback on the rewards and recognition program. This will help ensure that the program is aligned with their needs and preferences.
- Identify the right rewards. Determine the type of rewards that will be most effective and meaningful to employees, such as financial bonuses, time off or recognition certificates.
- Establish clear criteria for recognition. Establish clear criteria for recognition, such as outstanding performance, teamwork or exceptional contributions to the organisation.
- Make it personal. Make the rewards and recognition program meaningful to employees by tailoring rewards and recognition to individual preferences and achievements.
- Regularly communicate the program. Regularly communicate the rewards and recognition program to employees, including how it works, the criteria for recognition and how they can participate.
- Continuously evaluate and improve. Continuously evaluate and improve the rewards and recognition program, considering feedback from employees and changes in the organisation's goals and objectives.
Bringing it all together
As seen, a well-aligned reward and recognition strategy can have a positive impact on employee motivation, performance and overall job satisfaction.
It’s a vital component of your Employee Value Proposition (EVP), able to support the overall ongoing success of the business. By investing in reward and recognition strategy, you can demonstrate a genuine commitment to employees, improve employee satisfaction and wellbeing, and enhance your reputation as an employer of choice.
In our next post, we shed light on how to build a strong EVP that prioritises and supports employee well-being for a more engaged, productive workforce.