IRF Academic Research: Thoughtful Design Required for Effective Recognition Results
As part of its Academic Research in Action service, the Incentive Research Foundation (IRF) recently shared two academic research studies on effective recognition program design. One focuses on the potential of team-based recognition; the other on who to feature on leaderboards.The Effects of Team-Based Recognition on Employee Engagement and Effort: A Field Study
Peer-to-Peer Recognition Leaderboards Should Highlight the Givers for Greater Impact, Study Finds
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Two academic research studies on recognition support the importance of experience- and research-based recognition program design, writes Allan Schweyer, Chief Academic Advisor for the IRF.One study indicates the importance of emphasizing the people who recognize in leaderboards, rather than those who receive it. The other study demonstrates the potential of team (as opposed to only individual) recognition in organizations such as fast-food chains in which different employees have to cooperate. The study finds that authentically expressed recognition from management on a regular basis can improve teamwork, customer service, and financial outcomes, but that much more research is necessary on the actual impact of these programs.
Writes Schweyer, “These academic studies emphasize that careful design and strategic implementation of recognition systems are crucial. While team-based recognition demonstrates the power of collective celebration in traditionally low-engagement environments, the leaderboard study highlights the nuances of individual motivation and the potential pitfalls when recognition is perceived as self-serving. Together, they suggest that organizational recognition programs must be thoughtfully tailored to promote genuine engagement and collaborative work cultures.”
The Effects of Team-Based Recognition on Employee Engagement and Effort: A Field Study
This study by Adam Presslee, Greg Richins, Sasan Saiy and Alan Webb published in May 2022 “examines the effectiveness of team-based recognition programs in fast-food franchise restaurants, a setting characterized by highly interdependent tasks and low employee engagement.”
Using a hand-crafted thank-you card signed by both management and the local restaurant manager, along with a gift-wrapped, locally sourced organic chocolate bar, the tokens of appreciation were personally delivered to each person on the team by a member of management every two weeks.
Based on pre-and post-program engagement analysis, employees showed significantly increased engagement during the program compared to the pre-program period, indicating a direct positive association. Engagement also helped to boost effort, showing that it had additional positive effects, according to the study.
“Beyond improving these employee metrics, the program was linked to positive customer satisfaction and financial performance outcomes. As was the case in these experiments, engaged employees who exhibit more effort often deliver better service, enhancing customer experiences. This reflects in metrics like improved customer satisfaction indices and financial performance measures such as sales growth.”
Schweyer writes, “Despite promising findings, the study acknowledges limitations such as the lack of a control group and the program’s short duration. Nevertheless, this research highlights the potential of team-based recognition programs to foster a more engaged and productive workforce, suggesting that organizations, particularly those with team-centered tasks like fast-food chains, can benefit significantly from adopting and refining such initiatives.”
Peer-to-Peer Recognition Leaderboards Should Highlight the Givers for Greater Impact, Study Finds
In a paper published in Aug. 2022, John H. Evans III, Adam Presslee, and Alex Vandenberg, investigate how recognition leaderboards affect helping (i.e., citizenship) behavior based on whether they rank employees on recognition given or received.
135 participants in groups decided how much to help and recognize peers in four leaderboard conditions:
- No leaderboard
- Recognition received
- Recognition given
- Both types simultaneously
On the other hand, “leaderboards based on recognition given enhance helping-behavior by fostering a culture of gratitude and prosocial norms. Recognition given nurtures an environment of frequent, sincere acknowledgments encouraging more helping and positive peer interactions. By aligning recognition with gratitude, employees feel appreciated and motivated to reciprocate.”
The authors recommend that “These insights are vital for firms using leaderboards in P2P (peer-to-peer) recognition programs. Although leaderboards are cost-effective tools for boosting engagement, the choice of ranking criteria is crucial; firms should prefer recognition given over received to cultivate a supportive community. This aligns with surveys indicating that a substantial portion of employees seek more recognition and cite lack of appreciation as a reason for workforce transitions. From a practical standpoint, businesses must critically assess their P2P recognition designs to optimize for desired outcomes: fostering cooperation and minimizing competition that might undermine teamwork. These findings suggest that fine-tuning leaderboards to focus on positive reinforcement can significantly improve workplace dynamics and employee satisfaction.”
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