IRF Report Highlights Importance of Holistic Approach to Recognition

An Incentive Research Foundation survey of over 1,000 US workers and input from industry practitioners form the basis for these recommendations on how to build a culture of recognition.

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Employee recognition and engagement are closely related drivers of organizational success and can boost productivity, engagement, and loyalty. Recognition addresses the core human need to feel valued and can drive discretionary effort. Organizations should strive to create a culture of recognition by encouraging sincere appreciation at all levels, leveraging technology to accelerate recognition, and using smart design and measurement in recognition and reward programs.

These are the highlights of a recent Incentive Research Foundation study, Building a Culture of Recognition, based on a survey of 1,078 US workers, consisting of 54% middle management and 46% non-management in IT, engineering, legal, finance, etc, with 47% earning under $50,000 a year.

Key findings and recommendations include.

Make recognition fair and accessible: Recognition tools and programs must be inclusive, catering to everyone regardless of their role, level, or location within the organization. Encouraging leaders at all levels, especially managers, to make appreciation a regular habit is crucial. Recognition should come from various sources, including peers, cross-functional teams, and even customers.
Recognition should be frequent: Frequent recognition drives engagement and sincerity. Employees who receive recognition regularly—weekly, monthly, or even daily—report higher engagement, job satisfaction, and perceived sincerity of recognition. Infrequent recognition loses its impact and can erode trust and morale.
Timeliness is important. Recognition delivered promptly after an accomplishment is perceived as more sincere and impactful. Timeliness acts as a trust signal, making appreciation feel attentive rather than transactional.
Sincerity trumps monetary value: Sincerity in recognition has a stronger emotional and motivational effect than its tangible value. Authentic, specific, and detailed praise is more meaningful than grand or costly gestures.
Peer-to-peer platforms can enhance results. Access to recognition platforms boosts the frequency and inclusivity of appreciation. These platforms democratize and accelerate appreciation across the organization.
Recognition should go beyond individual performance. While individual performance is the most common trigger for recognition, team contributions, collaborative behaviors, and cultural citizenship are under-recognized. Expanding recognition criteria to reward collaboration and values-based behavior can encourage teamwork and shared purpose.
Tangible rewards enhance impact but are not essential: Tangible rewards enhance the effect of recognition but are not essential. Sincerity matters more than tangibility, and meaningful recognition doesn’t have to be expensive.
Personalization counts: The preferred frequency and form of recognition vary by individual worker. Offering a mix of non-monetary and monetary rewards, including verbal praise, gift cards, extra time off, and experiences, caters to varied employee preferences.
Continuous improvement: Measuring and improving recognition programs is vital. Using data from recognition platforms to monitor effectiveness and implement feedback loops can enhance program design.
Customer recognition: Over one-third of respondents (35.8%) report receiving recognition from customers or clients, reflecting the importance of external validation in employee motivation and sense of accomplishment.

Key recommendations:

Coach leaders to offer authentic, specific, and detailed praise that reflects true appreciation.
Expand recognition criteria: Recognition programs should reward collaboration, values-based behavior, and team achievements, not just individual output.
Design tangible rewards thoughtfully: For routine recognition, sincere appreciation alone suffices. For exceptional achievements, design tangible rewards that are modest but meaningful.
Personalize recognition and rewards: Encourage managers and peers to learn about team member preferences and offer a mix of non-monetary and monetary rewards.

The study was conducted with input from: Jennifer Attersall, Destination Canada; Jeremy Bielski, ITA Group; Kristal Cardone, Liberty Mutual; Ryan Dickson, Nationwide; Rudy Garza, Brightspot; Stephanie Harris, Incentive Research Foundation; Janelle Jones, AF Group; Lindsay Maloni, DMC Network; Janielle Moss Peacock, RDV Corp.; Lynn Randall, Randall Insights; Jordan Sanford, Prestige Global Meeting Source; Andy Schwarz, Incentive Research Foundation; Chrissy Shelton, Edward Jones; Rodger Stotz, Incentive Research Foundation Emeritus.

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