In today’s highly competitive business world, employee recognition is an important aspect of a business that needs to be given due attention. The way it is implemented and its success depend on how the business pursues employee recognition. In this report, we would like to showcase employee recognition in the business world, the theories behind each application, and how it is implemented by businesses.
Employee recognition is an incidence or program by which an employer appreciates and acknowledges the efforts and contributions of an employee publicly. This program is widely used by huge corporations, small businesses or managers as it is related to a number of individual and organizational outcomes. This concept of rewarding an employee’s behavior is one of the fastest growing in the world, especially in North America. Employee recognition also provides an opportunity to demonstrate the culture in a way that has an impact on employees. Some of the benefits of implementing this idea are job satisfaction for employees, higher performance and productivity, lower turnover, higher motivation and improves morale.
Employee recognition is split into three categories: formal, in-formal and everyday recognition. Choosing the appropriate category along with choosing the right factors, results in the effective recognition of employees. The first and the most widely used category is the formal approach. It consists of long-term service awards, performance awards, safety awards, monetary awards, and other similar prospects. These are awards that might be given out every month, or quarter, and usually involve plaques, or certificates. For example, recognizing the “best employee of the month” award is one of the common recognition methods used in firms. Some employees may think that this approach is not genuine and may under value these awards.
The second approach is the in-formal approach, which is a more departmental focus on employee recognition and connects employees with their colleagues. This approach is very effective, as it doesn’t ever have to happen; whenever it does, employees know that their efforts have been recognized by the organization, for example, a group party. This method of employee recognition is much more effective than the formal method as employees are recognized when they weren’t expecting it; there is no designated time. The manager plays a key role in this approach as he has to develop strong communication, give feedback on work, and encourage employees. These will make this approach effective. In-formal approach also involves peer-recognition system of rewarding where the employees are evaluated not by the superiors but by their peers and colleagues in the company.
The final approach is the everyday recognition. These are usually the small things that are done or said on a daily basis. It should occur immediately after the behavior has happened. For example, appreciating a team after a presentation has been given. This is arguably the best method of employee recognition as it shows employees that you notice their efforts and mention it right away. Thus, employees psychologically feel more valued in the business and work harder to maintain their impression.
Having the right system placed will not guarantee success unless some factors are observed. These factors include timeliness, personal lifestyles, consistency, verbal praise, sufficient funds, accountability, and creativity.
The outsourcing agreement has retained eighty percent of employees from the contracting company, and brought in twenty percent new employees from elsewhere. Our employee recognition program is projected to bond and gel workers into becoming a more productive, effective team. Since there has been a change in personnel in the IT department, our premier goals in using employee recognition programs are to improve overall morale and...