Employee Recognition Programs: How to Recognise More Than the Numbers

A while back, I had one of those days on the sales floor where everything clicked. I closed a record sale, and the company recognised it with a $50 gift card. I appreciated it. It’s always nice to be noticed.

Holding that card, though, I kept thinking about someone else on the team.

She worked as hard as anyone I’ve worked with. Customers loved her. She’d stay on with them until every last issue was sorted, however long it took. And because of that, her sales numbers took a hit. On paper, she looked like she was falling behind. On the floor, she was one of the people holding the whole place together.

She’d actually played a part in that record sale too. I’d been on an RDO, and while I was away she stepped in and helped the customer with a payment. When I called them after I got back, the first thing they mentioned was how lovely she’d been.

So when my manager handed me the gift card, I passed it on to her. I’d get a decent reward for hitting my targets anyway. Without that card, she would have got nothing.

The company didn’t do anything wrong. Recognising a record sale makes sense. The sale was just easy to see, and what she did on a daily basis wasn’t. At least not with the systems they had in place.

That’s the challenge with a lot of employee recognition. It follows the number on the board, and misses the people quietly holding the place together. It’s what I try to get across to businesses: recognise more than the performance you can see on a spreadsheet. And to do that, you need a way to measure it.

What is employee recognition?

Employee recognition is letting people know their contribution has been noticed and that it matters. It can be public or private, formal or a quick word in passing.

It’s different from reward. Rewards are things like bonuses, vouchers and time off, which I’ve written about in staff incentives. Recognition is being seen. It often costs nothing, and it’s often what people want most.

When recognition sends the wrong message

The flip side of my voucher story stuck with me just as much.

In another workplace, there was a top performer who was the opposite of that woman. He always hit the big numbers. How he got them was, let’s say, not always the most ethical. Everyone on the team knew it.

He got an award, and then a promotion.

That sent a very conflicted message to everyone else. Recognition tells a team what actually matters around here, far louder than any values poster. In that case, the message was: hit the numbers, however you get there.

There’s research on how costly that is. A Harvard Business School study of nearly 60,000 workers across 11 companies found toxic workers were often high performers, or seen as them. It also found that avoiding a toxic hire was worth roughly twice as much as hiring a superstar. (Harvard Gazette, 2015)

You recognise what you measure

So where do you start? For me, it’s with what gets measured.

Most work teams only measure performance. Simon Sinek uses an example from his work with the Navy SEALs, where people are looked at on two scales: performance and trust. Someone who performs brilliantly and can’t be trusted is toxic to the team. Someone solid who’ll always have your back is often worth more. (Advisor Perspectives)

If you only measure the numbers, you’ll only ever recognise the numbers. And you’ll keep rewarding the person who cuts corners, while the person looking after your customers gives away vouchers to make up the difference. (More on that in why KPIs for employees backfire.)

The second thing is how feedback gets collected. Toyota-style feedback systems show you contributions your performance metrics never capture: the person who spots the fix, helps the new starter, or keeps a customer from walking. Ideas and observations from the floor get captured, responded to and acted on, and you start to see who’s really making the place better. (Here’s why Toyota’s system worked.)

Recognition isn’t about a budget

I hear “we don’t have the budget for recognition” a lot. Recognition isn’t about a budget. People want to be recognised, whether that’s in public or in private.

Some of the best recognition I’ve had cost nothing. Being asked to train someone, or take on a bit more responsibility, always felt good. It said “we trust you.”

One time I was going through something outside of work, and my manager noticed. Instead of pulling me up for underperforming, she took me out for a walk. Some sun, fresh air and a chat. Not counselling, just a check-in. That’s recognition too. It’s being seen as a person, not just a performer.

The research backs this up. In one study, university fundraisers who got a short thank-you from their director made about 50% more calls the following week. Those who weren’t thanked didn’t change at all. (Grant and Gino, Journal of Personality and Social Psychology) And Gallup has found employees who aren’t adequately recognised are twice as likely to say they’ll quit in the next year. (Gallup)

Keep a record

Write it down when someone goes above and beyond. Then bring it out when a pay review comes around, so recognition and reward actually line up.

Keeping a record matters for another reason too: inadequate reward and recognition is a recognised psychosocial hazard. Do it for your team and your business, not out of fear of a regulator. That’s not the energy you want, and your team will see straight through it.

What makes an employee recognition program actually work?

If you’re setting up an employee recognition program, or wondering why yours isn’t landing, here’s what I’d check.

• It measures more than the numbers. How people get their results matters, and so does who they help along the way.

• It hears from the floor. Colleagues and customers often see contributions managers miss.

• It keeps a record, so recognition shows up at pay review time too.

• It fits the person. Some people love public praise. Others would much rather a quiet word.

• It’s genuine. Done for the team, not to tick a box.

A program built on those becomes a real tool. One built only on the biggest number on the board just tells everyone what really counts.

Get to know your team as individuals

To me, Sir Alex Ferguson is the greatest team manager in history. He was known for understanding his players on many levels, and for handling each of them based on that understanding. He even met David Beckham’s parents and siblings so he’d understand where Beckham came from. (Rutgers Business Review)

That’s the real secret to employee recognition. When you know people as individuals, you know what matters to them, what they’re going through and what they’re quietly contributing. Then recognition stops being a box-ticking exercise and starts being part of how you lead.

Spend the time to get to know your team as individuals, and you’ll learn how to support each of them to bring out the best in the whole team.

What you recognise becomes a signal to everyone else about what matters. So don’t just recognise the biggest number on the board. Notice who customers trust. Who helps when nobody’s watching. Who makes the team better. Who gets results without leaving damage behind.

Sooner or later, what you recognise is what you’ll get more of.

Frequently asked questions

What is employee recognition?

Employee recognition is letting people know their contribution has been noticed and that it matters. It can be public or private, formal or informal, and is different from rewards like bonuses or vouchers. It often costs nothing and is frequently what people value most.

Why is employee recognition important?

Recognition shows a team what the business really values, and it affects whether people stay. Gallup has found employees who aren’t adequately recognised are twice as likely to say they’ll quit in the next year. Recognising the wrong behaviour, such as results achieved unethically, can damage culture.

How do you recognise employees without a budget?

A specific, sincere thank-you, more responsibility, being asked to train others, or a manager noticing when someone is struggling are all powerful and free. Keep a record of contributions so they can be reflected at pay review time.

Do employee recognition programs work?

They can, when they recognise more than results. Programs that only reward the biggest numbers can end up rewarding the wrong behaviour. The ones that work look at how results are achieved, gather input from colleagues and customers, keep a record of contributions, and are run for the team rather than to tick a box.

Want to know what your team really feels valued for?

Our Team Culture Diagnostic helps you see what your culture is actually rewarding, and where people feel overlooked. If you’d rather talk it through, get in touch.

Culture that drives performance.