Whether it’s a tick-box on an employee engagement survey or a simmering atmosphere of discontent in a highly-strung meeting, nothing, it seems, is more frustrating or disheartening than not being acknowledged or rewarded for achieving targets, or generally helping the employer to succeed. It is the number one reason that people leave, often the very people you simply cannot afford to lose. If that doesn’t ring alarm bells, nothing will.
It is an obvious observation but it baldly states the facts that, people spend more time working than not, which makes the case for workplace satisfaction a no-brainer A recent study revealed that over 35 percent of employees consider lack of recognition at work to be the biggest hindrance to their productivity. Alongside data which also states that only 20 percent, believe that they are engaged at work, organisations potentially have a demotivated workforce on their hands. So how can businesses tackle this and prevent employees from looking elsewhere for a more gratifying job? It really pays to re-visit the basic purpose of R&R that you learned about all those years ago when you were working towards your HR qualifications – it goes beyond a simple ‘thank you’ or ‘well done’, which can only go so far – a reward and recognition system is to; encourage loyalty, consistently strong workplace performance, and even greater satisfaction from customers. Above all, as you will recall, it is one of most the vital factors to business success in the long term. And it still stand as one of the most cost effective methods of employee retention, although it is still largely ignored by a large number of organisations today. Presumably, somehow these businesses have sidestepped the unavoidable fact that a motivated workforce will achieve more than a demotivated one – perhaps these organisations are more advanced and are run by robots and AI! But seriously, just why some employers are not taking this more seriously is truly baffling.
Pullquote: “Non-financial reward programmes work better than cash in some cases, helping to reinforce organisational values, cultures, teamwork and increasing customer satisfaction – motivating employees to continue to achieve”
Maslow’s hierarchy of needs puts forward the idea that humans must have their basic needs met in order to pursue their own personal growth and development – with recognition forming the top three tiers, and rewards the bottom two. Rewards, in the business sense, generally refer to pay and job security, whilst recognition is defined as feeling a sense of belonging, demonstrated through the recognition of achievements and advancements. These are the most important needs of the modern employee, and one cannot be provided without the other – organisations have the responsibility to satisfy these needs. Whilst rewards are important, recognition is the key to creating engaged employees and people, with rewards arguably only providing short term satisfaction. Graduates are the employees of the future, but they are becoming pickier when selecting job roles, with over 1,000 positions left unfilled at the end of 2015. The traditional system of a strong graduate training schemes, along with ‘perks’ and competitive salaries, is no longer working. The fundamental needs of the employee having changed dramatically from what they once were. In turn, millennials arguably no longer consider financial incentives to be sufficient means of recognition, with a recent study revealing that they measure job satisfaction differently; with career development tools, mentor programmes and learning opportunities coming out on top.
As millennials now enter the world of line-management – where they are being managed by people from a different generation, with different needs – they place as much importance on learning and growth as they do on financial incentives. Organisations need to wake up to this fact and adapt if they are to attract and retain the next generation of top talent and high fliers.
For leaders looking to attract and retain talent, as well as improve overall job satisfaction, it is worth looking at how the reward and recognition system has changed, and adapt to suit the employees of tomorrow. For example, mentoring and guidance – staff crave feedback, so provide them with an experienced mentor who can offer honest advice that is based on their own professional development. Businesses are more than likely to have an army of potential mentors to choose from and should draw in as much help from both within and outside the organisation. Also learning opportunities – Millennials in particular, like exploration, expect challenges and are keen to gain as much experience as they can. Involve employees in new projects, as they are likely to be able to provide a fresh perspective on an issue or solution, and to become learning vehicles for the organisation. And tools for development – employees are often willing to invest their own time to further their careers, so provide them with the tools to do so, and give them the chance to manage projects and solve problems. Self-guided training resources provide real examples of problem solving in the workplace, whilst also putting professional development in the hands of the employee. And don’t forget career paths – most people want clarity over their career prospects, with a clear path and their options for progression. Personal development plans that fit their own specific needs, with clearly defined objectives, will help nurture employees in to future leaders. Most of this is self-driven and available for free. Tomorrow’s forward thinking employees want to discover things for themselves and be in control of their career choices and ongoing professional development.
Clearly it’s not just new recruits and ex-graduates who value reward, recognition and development schemes; the same attention should also be applied to the entire workforce. Recognition is a vital tool in retaining the talent already contained within the organisation, and goes beyond simply providing positive feedback. Everyone values extra recognition of extra exemplary efforts. Non-financial reward programmes work better than cash in some cases, helping to reinforce organisational values, cultures, teamwork and increasing customer satisfaction – motivating employees to continue to achieve. However, it needs to be timely, recognising work as it happens as well as the team members who helped to achieve it. Rewards should also be strategic; based on achievements that are most in line with the business goals, as this will serve as positive reinforcement of the long terms objectives (be these increased sales, higher profits or improved customer satisfaction). Recognition can take a variety of forms; dinners, employee of the month (or year) awards, or even privileges allowing staff to work from home, start late, or finish early. A job well done can also be recognised by providing additional support, or giving them the choice of future assignments, as well as giving them greater levels of authority in future business decisions. For smaller businesses where money is tight, even a simple certificate, extra day’s leave, or a small gift can go a long way towards making an employee feel appreciated.
The realignment of what motivates employees is forcing a shift from the transactional, or financial, approach, to the need for relationships to be nurtured and developed. Forward thinking employees want to understand the impact they are having on an organisation, as well as being recognised for it, and in doing so, make themselves ‘future proof’.
Whilst a rewards and recognition programme may initially seem like too much effort with limited returns, it can actually be the key to organizational growth and success. Whatever the size or sector of the organisation, systems such as these have a place, and leaders should determine what behaviours or achievements best support the organisation goals. It is time to stop the box-ticking exercises associated with employee development, and put the human back into human resources. Leaders should regularly acknowledge and reward the passion, knowledge and initiative held within the workforce if they want a business that is recognised for growth, innovation and success – and one which attracts the top talent. There’s an increasing hunger for recognition. For example, recent research by International Bank – Santander showed that 30 percent of ex-graduates in the UK want to be entrepreneurs, that’s 500,000 individuals and it’s increasing every year. In the future are more people going to be similarly recognition led, will they choose to personally take control of the reward and recognition system? It is time to stop the box-ticking exercises associated with employee development, and put the HUMAN back into Human resources. Leaders should regularly acknowledge and reward the passion, knowledge and initiative held within the workforce if they want an organisation that is recognised for growth, innovation and success – and one which attracts the top future talent.
Art of Enterprise by Phil Underwood is published by Art Of
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