4 Companies That Have Nailed Their Employee Recognition Strategy
Explore impactful employee recognition strategies to enhance engagement and motivation.
Leading companies understand the invaluable efforts of their workers and the importance of acknowledging it regularly. In this article, we offer four examples of exceptional employee recognition strategies:
- Zappos’ peer-to-peer rewards program
- Recognition as part of change management at GE Healthcare
- The thoughtful use of thank you notes at E.ON
- Apple’s considerate paid-time-off reward for a global workforce
Strategic employee recognition is now widely recognized as a useful tool to engage, motivate, and appreciate the workforce. Employees value recognition from their peers and managers equally, according to PwC research, with 50% responding that recognition from their peers was important and 51% stating that recognition from their managers was vital. Employees prefer verbal acknowledgment over any other type of recognition, with 71% preferring verbal praise over any other form of recognition.
Employees, on the other hand, value monetary incentives, with 72% saying that obtaining a small monetary reward would drive them to perform more. A study conducted by Deloitte discovered that a recognition program costing just 1% of payroll can have a significant impact on employee engagement and retention. Let’s look at four examples of exceptional employee recognition strategies that illustrate how this HR element can play a significant role in organizational success.
Learn More: What Is Employee Appreciation? Definition, Strategies, and Ideas, With Examples
4 Standout Examples of Employee Recognition
Several organizations have some form of recognition program, but the results aren’t exactly as expected. HR teams can transform their recognition models by taking inspiration from companies known for employee centricity and workplace experience quality. Here are four companies to inspire you on this journey.
1. Zappos offers a four-pronged employee rewards program
Zappos is a multinational e-commerce chain with a sizeable workforce. The company is also known for its culture focus, with an independent entity called Zappos’ Insights built to share the company’s core values with a global audience.
Zappos‘ rewards program is layered, but it stays in sync with the company’s motto of “doing more with less.” Their strategic employee recognition approach is based on a peer-to-peer format, with employees sharing low-cost, high-frequency rewards with each other
Employees can earn “Zappos Dollars” for training participation, either as learners or volunteers. These dollars are redeemable in the office via branded vending machines. Employees can also donate these dollars to a Zappos partner charity.
Their employee recognition strategy is unique in that it factors in personalized needs according to the office location. At the company’s Las Vegas premises, getting a covered parking spot can be a challenge. Once a week, employees can nominate a colleague for a special parking spot that is designated as a “reward.”
Apart from this, there are also peer-to-peer bonuses and HERO awards, with a Zappos HERO Cape thrown in!
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2. GE Healthcare embeds recognition into a cultural refresh
GE realized that continued engagement would be key to sustaining the impact of organizational change. That’s why, after the company restructured its manufacturing site between 2010 and 2014, it doubled down on its engagement and recognition efforts.
Continuous communication was integral to employee recognition, resulting in the creation of an Employee Forum for continued collaboration.
There were also weekly meetings that took a creative spin on regular employee-manager check-ins. A wall-mounted dashboard highlighted performance and achievements. Friday meetings were held at the site’s restaurant, in a comfortable environment for employees.
Finally, employee recognition was formalized as part of monthly team briefs, and six-word success stories of employees’ were publicly presented as posters.
GE’s strategic employee recognition was part of its holistic change management plan, ensuring employees felt secure after a major organizational shift.
3. E.On strategically used the simple thank you note
Effective employee rewards don’t always have to be expensive or effort-intensive. The German utility company E.On applied this principle to optimize its staff engagement levels. The company introduced a Buzz recognition program that encouraged personalized recognition via digital and physical thank-you notes.
This employee recognition strategy cut across organizational hierarchies, with recipients getting “thank yous” from managers and peers alike. Leadership teams were also brought into the scheme, with senior executives personally recognizing close to a thousand employees. And the results speak for themselves:
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- E.On’s staff motivation score increased from 61% to 69%
- The number of employees “feeling valued” increased by 39% to 52%
- Employee understanding of E.On’s business vision also rose from 57% to 75%
This example illustrates the broader impact of intelligent reward mechanisms. The sheer personalization and employee centricity of their rewards made the outcomes exceptional.
4. Apple ensures paid time off for everyone
Apple has always enjoyed a pretty high ranking when it comes to workplace experience. In 2018, Indeed named Apple the best private-sector employer in the U.K. LinkedIn ranked it the sixth-best company to work for in the U.S. Of course, part of this experience management plan is Apple’s stellar employee recognition strategy.
For example, during the holiday season, Apple surprised its employees with an extended holiday so that the entire workforce could take a week’s break. Instead of just one day off on Thanksgiving, Apple decided to offer paid holidays for three days in a row.
In addition to this, Apple thoughtfully customized the reward as per an employee’s location and job role. Workers in a different part of the world would get paid time off during an equivalent holiday. Retail workers who continued to put in efforts during the holiday season (a peak demand period) would receive a similar reward at an alternate time.
Two key elements stand out in Apple’s strategic employee recognition:
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- First, Apple understood and recognized the efforts of the entire workforce as integral to the company’s success. This directly links individual job roles to the broader business model.
- Second, the reward was tailored to meet regional, cultural, and personal requirements. Employees could enjoy their reward and feel valued regardless of the location of their office.
Learn More: 20 Memorable Employee Appreciation Day Ideas for 2020
Why the Time for Smarter Rewards Is Now
A smart employee recognition strategy can make a big difference in a competitive job market, where top talent is ready to switch roles if they see a genuine value addition elsewhere. These leading companies are prepared to show that they genuinely care about their workforce. Rewards and recognition are a great investment for companies of every size, motivating their employees to become “growth partners.” Inspired by these examples of strategic employee recognition, you could rewire your engagement plans for continued success in the near and the long term.
Have you considered a new employee recognition strategy? Share your plans with us on Facebook, LinkedIn, or Twitter. We would love to hear your perspective!