Should your company invest resources into an awards and employee recognition program? And if so, how much? Rationally speaking, investing in employee recognition should have a significant positive impact on the business. But it’s not just a good idea: it’s a fact. Here are some of the ways that company gifts and awards are scientifically proven to improve your business:
- Increased employee motivation and engagement. According to a study by Gallup, companies with high levels of employee engagement outperform their peers by 147% in earnings per share. Recognition and rewards programs can increase employee engagement by creating a sense of pride and ownership in their work and fostering a positive company culture that attracts the best possible team.
- Improved retention rates. In this day and age, it is crucial to prevent worker burnout. A study by the Aberdeen Group found that companies with effective recognition programs had a 31% lower voluntary turnover rate than those without such programs. Recognition and awards programs help employees feel valued and appreciated, which can increase their loyalty to the company. This saves significant costs for the company by reducing the costs associated with recruiting, hiring, and training new employees. By this metric alone, employee rewards may pay for themselves.
- Higher worker productivity. The vast majority of employees who qualify for prize consideration use their work time more efficiently than their unmotivated counterparts. A study by Socialcast found that 69% of employees would work harder if they felt their efforts were better appreciated. By recognizing and rewarding employees for their hard work, businesses can motivate their employees to be more productive and perform at a higher level.
- Better employee satisfaction. A study by Globoforce and the Society for Human Resource Management (SHRM) found that employees are nearly two times as likely to agree their company is a good place to work when they are very or somewhat satisfied with how life events are celebrated in the workplace (64 percent), compared to those who are very or somewhat dissatisfied with the celebration of life events (35 percent). Happy, satisfied employees are more likely to provide better customer service and positively impact customer satisfaction.
- A reputation of excellence. According to another study by Globoforce and SHRM, employees who receive company awards and recognition are almost three times as likely to rate their company’s program as excellent, compared to companies that invest next to nothing. Meanwhile, employees at companies that did not invest any payroll in recognition investment were five times more likely to rate their program as poor.
- The 1% Rule. According to the same study, the sweet spot for recognition investment is around 1% of company payroll. Any less, and the program fails to deliver satisfactory results. Diminishing returns are to be found on the other side of the curve, too: while a little above 1% might be even better, too much more is simply overkill.
Employee Award Ideas that Inspire and Motivate
It’s no secret that employees who receive recognition are more likely to be happy workers. Motivated employees have higher retention rates and greater job satisfaction. This is all because they feel recognized for their achievements and effort.
For your award ceremony, you need unique corporate gifts and awards that fit the occasion. In general, focus on personalized gifts tailored to your employee’s preferences.
Here are a few employee award ideas that recipients will appreciate:
- Gift Cards and Gift Certificates Tailored to your Employee’s Wants
A manager can acknowledge the employee and honor individual interests with gift cards and certificates. To award the most unique gift card, a manager should take the time to learn more about the employee. A gift certificate that considers an employee’s favorite restaurant, sports activity, hobby, or travel plans is highly thoughtful. Ask other employees or managers what they think the recipient would enjoy. Though it’s also possible to present all employees with impersonal gift certificates to a nearby restaurant, this is unlikely to instill the same sense of being appreciated as a personalized gift card.
Consider pre-paid credit cards or gift certificates for multiple stores to give a unique corporate gift that can speak to everyone’s interests. For extra visual presentation points, include a desk card holder with the gift card stored inside.
- Awards of Distinction to Celebrate Milestones
A personalized plaque or trophy that can be proudly displayed is a physical reminder that the company recognizes extraordinary effort. These awards can be simple designs or elaborate art glass trophy sculptures with personalized nameplates. Plaques can also be large office displays where employee names are added once they achieve performance milestones; more extensive plaques with multiple names can be used to honor members of a distinct team. Recipients might display the honor in their office to instill confidence in potential clients or at home as an ongoing reminder that labor is recognized.
- Perpetual Plaques Build Excitement
Workplaces should consider highlighting milestones on a monthly or quarterly basis to drive engagement within the workplace. One of the most immersive ways to do so is to utilize perpetual plaques. Consider employee of the month perpetual plaques and plaques for top sales awards for any given month or quarter.
By having a perpetual plaque in a common area space that employees can look at, they can imagine their name adorning it. This will create a healthy sense of competition in the workplace and can boost engagement throughout the year, especially during lulling periods.
- Public Praise and Endorsement
Career-oriented social media platforms provide managers with a unique opportunity for recognition: writing a public employee review. This allows the manager to highlight what’s exceptional about the employee and a willingness to let everyone know. While this might seem like announcing a star employee to the competition, it also shows that the company is confident in its ability to retain and recognize employees.
Managers and HR directors should work collaboratively to formulate different tiers of distinction and unique ways to recognize star talent. These honors should consider your employees as individuals and as part of a team. With a solid program and a consistent timeline, your company will enjoy the efforts of a motivated, happy workforce.
Don’t Underestimate the Power of Employee Recognition
At the end of the day, awards and recognition programs are simply good for business. It only takes a meager investment to increase workplace satisfaction, improve employee retention rates, boost productivity, and improve your company’s bottom line. By recognizing and rewarding employees for their hard work and achievements, the employees are set up for success.
If your business does not currently have a satisfactory employee rewards program in place, you can start by following this guide.
