In the second article in our series looking at pensions and benefits in a post-COVID19 world, we discuss how employers who wish to recognise employees can do so in a cost-effective way.
Many businesses have suffered great financial losses during the current economic downturn. We have all heard about huge numbers of redundancies from well-known brands and some of our best-loved names changing employee terms and conditions. But what options are there for employers who wish to recognise employees without breaking the bank?
Recognition programs: a well-deserved thank you
One of the success-stories of the COVID-19 pandemic has been the loyalty shown by many employees. Bringing work into their home, continuing to deliver customer service with a smile, or going back into the workplace in spite of the risks. These are the individuals who have kept the UK running when times looked bleak. These employees deserve a ‘thank you’. But with the financial struggles faced by all businesses, can employers show their gratitude without causing additional financial strain?
There are several formal recognition programs available, using points-based systems and on-line portals for employees to nominate colleagues to receive a monetary based thank-you. Thoughtful and spontaneous ways of recognising employees build great cultures and the employees who have kept your businesses going despite their own fears and anxieties are the ones you want to hold on to.
It is possible to design informal recognition programs that can operate without on-line systems. By documenting simple policies and procedures and with some key principles you can still drive the employee motivation that recognition brings without increasing your spend.
The reward can be as small as a hand-written thank-you card from the Manager or, where finances allow, maybe a cinema or restaurant voucher*.
Key points to consider when designing a recognition program are:
- Establish Principles: What behaviours are you looking to reward? How can nominations for recognition be made and who can nominate? A sense of community and belonging is created by peer to peer recognition rather than the traditional hierarchical approach.
- Appropriate frequency of recognition: The frequency of recognition should be sufficient to motivate employees as they ‘wait their turn’ but should be unpredictable to avoid becoming seen as an entitlement.
- Maintain simplicity: If you are looking to avoid the costs and complexities of a formal recognition program, administration needs be simple. For a simple recognition program to be effective, eligibility needs to be clear and Managers need to have the tools to hand.
- The Reward: A thank you in person, a handwritten letter of appreciation, a mention in a company newsletter or on social media, a cash or non-cash gift (subject to tax implications).
It’s a basic human need to feel appreciated and recognised and it’s proven that effective recognition can improve staff morale, enhance loyalty and increase productivity. Whatever scale your resources allow, do not under-estimate the power of a thank-you. Recognition programs have the potential to provide a real and quantifiable impact on employee and company performance. They really can be a cost-effective way of encouraging, motivating and getting the best out of a workforce.
*Take care to understand the tax implications of any cash or cash alternative awards.
If you are considering a recognition program for your organisation, we’d love to share our experiences with you. Contact Tina on 020 8213 5860. Look out for future articles in this series on employee benefits in cost constrained times and looking after your employees’ financial wellbeing.