7 Proven Methods on How to Build a Culture of Recognition in Your Workplace

All great workplaces are constantly trying to figure out how to build a culture of recognition. Recognition constantly ranks high as a factor that helps create an engaging and motivated workforce making it the cornerstone of attracting as well as retaining top talent.

Companies that understand this are always ahead of the curve. So, to help you achieve this, we have created an in-depth guide of everything you know about building a culture of recognition in your organization.

1. What Is a Culture of Recognition?

A culture of recognition is one where the employees are aware that the company values their contributions and understands their role in the success of the organization. It is fundamental in helping build trust and security amongst the workforce and ensures that the employees are motivated to do their best.

2 Why Does Employee Recognition Matter?

Employee recognition matters because it helps in retaining talent, and increasing employee engagement, and productivity. Recognition is one of the most basic expectations that an employee has from a workspace since it is an indicator of a job well done. The most important fact however remains that employee recognition has a direct impact on productivity. A recent study by Gallup states that a 10,000-person company can easily save up to $16.1 million in turnover costs provided they implement an employee recognition program

The way communication is structured, even a neutral reaction can be easily perceived as a negative one.

3 What Are The 4 Types Of Recognition?

3.1 Informal Recognition

Informal recognition refers to the appreciation that isn’t planned out in advance by the organization. This includes things like a simple thank-you over chat, a shout-out during a team meeting, or even something on your employee recognition software to help employees feel valued. These small instances of recognition are what give rise to an authentic culture instead of one that feels phony.

While this is something that is carried out by the employees and their supervisors on the floor, the organization should also ensure that they support this. One way to do this is by creating a system that rewards both the employees who receive the most recognition and the ones that give it out.

3.2 Formal Recognition

Formal recognition are the actions that the company practices on a regular basis. These include anniversary celebrations, favorable work reviews, bonuses, and raises. These are often built right into the company policies and have for a long time been the differentiating factor between a good company and others not so great. If you fail to recognize employees’ big moments and achievements, there is a high chance that your entire recognition program might not work out.

However, formal recognition is no longer enough if you are looking tot figure “how to build a culture of recognition”. It's a good start but not the only type that employees are looking for.

3.3 Social Recognition

Social recognition is what you receive from your peers and teammates. To enable a culture of social recognition in your office you need to provide both the means and the motivation to employees to show their appreciation for their teammates often.

Leaders and the managers of the organization should set the premise and share their best practices on how to give recognition to employees. It is only then that employees will be motivated to do the same for their peers. When we refer to the means that you need to provide, we are talking about an employee recognition software like, Sorry, I was on Mute, Necter or Kudos that will help employees give and receive appreciation.

3.4 Monetary Recognition

Monetary recognition is the recognition that employees receive in the form of bonuses and raises. But in the current times, it has evolved to also include items, trips, and other personalized experiences like tech gadgets, swag, and an in-house pantry.

4 How to Build a Culture of Recognition in the Workplace?

4.1 Always Start at the Top

It is important to start with the top management when you are aiming to build a culture of recognition and appreciation. Employee recognition is just one aspect of it, any people-based initiative that an organization wants to promote needs to be first embraced by the top brass of the company. It is only through their recognition examples that an entire culture can be built.

4.2 Be Specific And Relevant

Recognition holds a lot more value if it is done for a specific event with measurable results, especially in a workspace. When you are recognising people they need to be able to understand the reason so they can chart their growth forward. It is essential to understand as an organization that your employees want recognition from you but also their peers. If everyone understands the process it becomes easier to establish it as a culture.

4.3 Reward Timely and Often

Correct timing plays a huge role in the creation of a healthy recognition culture. You need to be on top of it from the first day that an employee walks in the office. Give them a brief about the different programs in place and then ensure that you follow through. This issue is one that plagues a number of companies, i.e. not following through. This leads to employees losing faith in the organization as a whole.

4.4 Make the Process Easy

Do not complicate the process of giving recognition. Ensure that your systems are up to date-and accessible to everyone. If you are using any software, pick one that can easily work on a mobile app or browser so that employees can easily give recognition. The goal is to implement a program that is easy to use and does not have a learning curve.

4.5 Give Employee Recognition in Various Ways

There are four different kinds of recognition- formal, informal, social, and monetary. The best approach to building a culture of recognition is one that takes all four into account at different points. Create a program that grows and evolves based on what your employees need.

Understanding what are recognition techniques, is essential if you want to provide your employees with the right type. This usually means keeping in mind certain points like making it personal to ensure that they know you understand their accomplishments and providing opportunities in the first place for them to excel in the first place.

Everything from a simple thank-you to paid time off is a part of employee recognition.

4.6 Give More Responsibility

Responsibility goes a long way in showing your workforce that you trust them and want them to be better within the organization. Most employees have career aspirations and want to grow.

Providing opportunities to take on more responsibility will help them hone their managerial and leadership qualities. It gives them a sense of being valued and trusted to take on more. This results in enhanced employee morale and more productivity which works in the larger interests of the organization. They have personal goals, which if you handle them correctly can align with the company's larger goal. If you give them more responsibility, they will also see that you appreciate their contributions to the organization and want them to grow.

4.7 Focus on Peer-to-Peer Recognition as Well

Peer recognition refers to the process of being recognized and appreciated by your own teammates. Yes, it is important to get recognized by the leaders of the organization but peers are people who they are with on a day-to-day basis, and appreciation from them is bound to empower employees and tell them that they are doing something right.

5 What are Examples of Recognition for Employees in the Workplace?

5.1 Alphabet Inc

If you are trying to figure out which company this is, Alphabet is Google’s parent company. Time and time again they have managed to attract top talent through their employee engagement programs. This includes a unique compensation structure that allows employees to have transferable stock options, a work environment that gives them access to a fitness studio and unlimited meals, and autonomy. Adsense came into being through its program that allows employees to use 20% of their time on innovative projects beyond their scope of work.

5.2 Disney

If you are looking for employee recognition examples then Disney the multinational corporation is a great has about 180 recognition programs in place which all cater to ensure that every employee knows that they are not just a cog in the great Disney machine, but rather an essential part of it. They even have a recognition program named after an employee called the Spirit of Fred Award. This is for people who showcase the company values like dependability and friendliness.

5.3 Groupon

Groupon, is also an amazing addition if employee recognition examples are what you are looking for. The internet discount website gives a bright green Adidas sweatshirt for every year of service with the option to customize it as per their choice. This is of course in addition to having a great recognition program in place. But the addition of this particular thing helps them stand out from the crowd.

6 FAQs

How do you recognize employees for their accomplishments?
There are multiple things you can do to recognize your employees like giving them a shout-out or a bonus.
How do you improve employee recognition?
You can improve employee recognition through the implementation of a robust employee recognition program that covers all four forms of recognition- formal, informal, social, and monetary.
What makes a successful recognition program?
A successful recognition program is one that is in alignment with an organization's core beliefs i.e its mission, vision, and values. A good recognition program clearly lays out what a company is looking for in an employee and what behavior it rewards.