Talk about employee recognition with many business owners or managers and they will point to several steps they take:
- We use __________, they have this really neat program where an employee can earn swag!
- We recognize key performers every month, the top sales, top production, employees who get 5-star reviews on social media!
- Recognition? Well, we do a big holiday party, and everyone gets a gift – it’s a lot of fun! And we cook breakfast for everyone once a quarter – everyone likes laughing at the managers cooking in their aprons!
The Recognition Dilemma: Middle-of-the-Pack Performers
All of these can be a good start – and can also be a point of contention for your “middle-of-the-pack” performers. It’s happened several times: you’re sitting in a meeting and reviewing prior months results. You announce the top performers. Everyone in the room can tell you who they are before they’re announced. The same “top performers” as the last 2-3 months. Might as well change that parking space sign from “Employee of the Month” to “Dave P’s” assigned space. You probably even have someone in your organization in mind. And we all know you appreciate Dave, you don’t want to lose Dave, Dave makes your organization way more successful. It would hurt A LOT if Dave left!
The Downside of Overlooking “Steady Eddie” Employees
But there’s more than a few people in your organization who think to themselves, “Dave again?!” What about me? It’s a much rarer situation where those key “steady Eddie” employees feel the love like Dave does. And many managers and owners will admit that they wouldn’t struggle too much to keep those employees if they gave notice. But if the company is all superstars, there’s work that won’t get done.
Why Recognition Matters for Employee Retention
The Gallop organization is great for their insights about employee attitudes and employee retention. Here’s a statistic Gallop have found through their studies: data from studies (2022-2024) shows that well-recognized employees are 45% less likely to have turned over after two years. Given that a high percentage of new hires don’t make it to their first anniversary in service trades such as plumbing, HVAC and electrical – there’s a clear hint to improved employee retention.
Five Keys to Employee Recognition Success
Back to Gallup, the organization spells out five aspects of “recognition” that help retain employees:
- It’s proportional with what employees expect is fair
- It’s authentic, not just a “check mark” of a to-do list
- It’s personalized to the individual
- It’s fair to all – management and leadership isn’t playing favorites
- It’s part of the company culture’s fabric
The Importance of Authentic and Personalized Recognition
Let’s focus on two of those – Authentic and Personalized.
More than one manager has bragged about their recognition “program.” They go on to explain that it’s automatically generated by their HR system on key anniversary dates (one year, five, ten, fifteen and so forth). Every employee gets the same gift or tchotchke on each specific anniversary. The employees get their name on a board and in a company newsletter. They get recognized at a company meeting – usually all the anniversaries each month recognized all together. Pretty standard stuff. Kinda sterile.
Why “One-Size-Fits-All” Recognition Fails
But if it’s treated like a program, that means the employees get it. And it becomes “no big deal.” Even where there’s a big-ticket item associated with it. It becomes another confirmation that “everyone’s a number here,” or “they don’t care about me.” Or more basically, “They don’t see me. They wouldn’t miss me if I wasn’t here.”
A Cautionary Tale: Recognition Gone Wrong
How could a good thing like recognition go wrong? An example:
One business made a habit of giving out $50 gift cards to Starbucks to an employee for five years’ service. They did so without connecting the fact that the employee was a strict Mormon who never drank coffee. The employee received the card. By the time the meeting was done, he’d given the card to a coworker who loved Starbucks.
How to Avoid the Pitfalls of Recognition Programs
Some are thinking, “Well, that’s just silly! Starbucks has more than coffee!” Consider the point missed! Everyone wants to be “seen” as an individual and appreciated. What was intended as a compliment actually had the reverse effect. It wasn’t authentic, nor personal.
The Role of Tools in Recognition: A Double-Edged Sword
Understand there are some great companies out there that can support your “official” recognition program (just ask us – we got a great one we recommend). But even the best of tools can become a “program” if it’s allowed to be treated as the answer.
The Gap in Daily Recognition Efforts
What about those employees who’ll never make it to a year anniversary because they don’t feel “connected”? Isn’t it a long time to go between awards if there’s someone who helps the organization fulfill its mission?
The Power of Thoughtful, Individualized Recognition
We all can sense authenticity versus a programmatic approach. It’s the thought process that says, “We give everyone a Starbucks gift card, so we’ll do the same for him.” The box is checked! The employee can’t complain – it’s his problem if he feels any slight. The task is done! But again, it feels sterile.
Recognizing Skills Beyond the Metrics
Now, let’s talk more specifically about personalization. Think back to those monthly meetings where the same people get recognized each month… “highest sales,” “best close rate,” “most production” and the like. They deserve to be recognized, but so do a number of other employees. Who has the best technical skills? Who can best “save” dissatisfied clients? Who’s the best on your team at keeping morale up? Who’s the most competent?
