employee recognition programs: why they matter and how to create one.

Employee recognition helps keep talent engaged and motivated. While Randstad’s Workmonitor 2024 report found that over 85 percent of employees regard pay as crucial, not every worker jumps ship for better pay or working conditions. Sometimes, they simply don’t feel appreciated or valued where they are. Yet this is a challenge that every manager can tackle using formal or informal acts of recognition. Here’s our roundup of reasons to prioritize employee recognition programs, plus some tips for embedding appreciation into your company culture.

1. employee recognition programs boost morale

When employees feel seen and appreciated for what they do, they are more likely to feel good about coming to work. It gives them a sense of pride and accomplishment that can be incredibly motivating. Recognition also helps build trust between management and employees, which is essential for a healthy working environment.

2. they increase engagement

Maintaining employee engagement and productivity is especially critical in today’s working environment, where teams may be scattered and colleagues may not interact on a daily basis. By recognizing the efforts of all workers, office-based, remote or hybrid, managers can foster a sense of community among dispersed teams.

3. they improve retention

High turnover costs firms dearly in terms of time, money and loss of institutional knowledge. If your employee recognition program reduces your churn rate, therefore, it will be a worthwhile investment. The more your employees know how much they — and their hard work — matter to you and the organization’s mission, the more likely they are to stick around.

how to build an employee recognition program

Starting employee recognition programs is easier than you might think. In fact, you’re probably doing some of these things already. Here are a few ways to make your employees feel appreciated.

hand out gifts

Money talks, of course, so spot bonuses are a great way to recognize your employees’ efforts. If your budget won’t stretch that far, get creative. Smaller things like employee care packages, gift cards and items for desks or workspaces are also effective rewards that make people feel appreciated.

celebrate milestones

Give out surprise bonuses when employees reach certain goals or milestones, such as completing a project ahead of schedule or exceeding sales targets by a certain percentage point each month/quarter/year.

encourage employees to recognize each other

Host a “Cheers from Peers” event where coworkers share positive feedback about their colleagues’ successes and hard work.

create a wall of fame

Dedicate a wall in the office to recognizing employees who have gone above and beyond. This could include photos, certificates or other mementos that showcase their achievements.

personalize your rewards

Anyone can send gift cards to the whole team. It takes a thoughtful manager to buy game tickets for the office basketball fan and a gourmet gift basket for the resident foodie.

offer a shout-out

This is the easiest thing you can do on a regular basis. Give some kudos during a meeting or write a simple thank-you note. For noteworthy achievements or milestones like a work anniversary, offer public recognition by sharing feedback on social media or featuring team members’ stories on the company website.

This is just the tip of the iceberg when it comes to employee recognition programs. You’ll find plenty more tips for retaining and engaging top talent in our workplace insights section.