How to Achieve Recognition with An Award

With the amount of competition in businesses today, raising quality while keeping costs low is an absolute must. Especially pertinent for the smaller businesses, employee performance may make the difference in the survival of the business.

One way to motive employees without excessive spending is with the use of awards. By recognizing the employees’ abilities and contributions, the employees are given a sense of pride in their accomplishments. It is this pride that will push the employees forward into working harder, and with a greater sense of satisfaction than before.

Using awards as stepping stones if effective. Providing a set document stating what an employee needs to do within the business in order to be awarded gives some control to the employee. They can now decide they want to work harder and do more because of the sense of satisfaction provided by the award. Often, this will result in a marked improvement in an employee’s performance.

The Different Award Programs

Award programs can be developed to benefit either employees or teams. Variable pay is a program where an actual part of an employees’ pay is deemed to be at risk. This can be used to boost the performance of an employee or an entire team because the rewards are strictly performance based.

This programs can include benefits like options in stocks, awards for select accomplishments or even packages containing specialty benefits. The award goals should be a challenge to earn without being so difficult the employees will not even try to earn them.

Bonus programs work quite well in organizations concentrating on sales. They are given to employees by making a certain number of sales or increasing their total sales by a given percentage. Making sales in certain territories or in a specific period of time can also be criteria for achieving this award. Whatever bonus the company awards should be achievable or they will not work.

Stocks as An Award

Awarding employees stock options in the company has always been popular among some of the larger companies. This option means an employee can purchase a certain amount of company stock at a set price for a predetermined length of time. Although the time period differs, it is usually set at a period of about ten years. This is designed to make employees want to continue working for the company for an indefinite period of time.

This way, the employee becomes vested in the company and is not likely to quit. One of the strongest benefits to this course of action for the company is they receive a substantial tax deduction. This compensates the company for offering the stock options to their employees. Although there are risks for both the employee and the company, this method has been proven effective as long as the company’s assets continue to grow at a steady rate.

Why Recognition Awards Have a Positive Influence

When an employee receives an award for recognition, it makes a dramatically positive statement. It tells this person that they are appreciated, that they have made a positive difference. One of the best ways for an employer to thank an important employee is by the giving of this award. This will also have the benefit of encouraging the person to work their absolute hardest in the future.

This inevitably leads to the employee’s self-esteem going way up, and making them an even better employee than they were previously. When a company is staffed with employees who feel good about not only themselves, but the company they work for, it makes a tremendous difference. This is the beginning of true success for both the company and the employees. Unfortunately, sometimes employers have the best of intentions but they are never carried out.

Why Recognition Awards Are Not Given by Some Companies

Although sometimes employers are aware of the importance of employee recognition, their efforts go astray. There are some employees who become jealous when they are not the recipient of the award. Instead of striving to work harder and have a chance to receive this award later on, they cause trouble. They become angry with the employer instead of asking what they lacked that the recipient did not and making necessary changes within themselves.

Their pettiness, jealousy and complaining have the opposite desired effect, and end up hurting employee morale. Employers who have seen this happen before become hesitant to give out these awards. If employers realized more that all employees think differently and have unique and individual requirements for what they believe is success, it would be different. When it comes to recognizing the abilities of employees, there is no such thing as one size fitting all.

How to Establish Proper Employee Recognition Procedures

When an employer makes the decision as to what is required to make an employee outstanding, this is the first step towards understanding employee recognition. With the creation of specific goals and plans for the employees, the employer begins to take charge. The opinions, accomplishments and behaviors of all employees must be given recognition. Establishing set criteria, such as awards for different accomplishments helps as well.

Giving out other awards such as gift certificates can add excitement and cause employees to work even harder. The most important thing any employer can do, is remember to be honest, fair and treat their employees well. Employees who make the exact same contribution must receive the exact same award. The establishment of set rewards for certain tasks or behavior simplifies the process and usually has good results.

Confusion must be replaced with clarity so employees have a full understanding of exactly what is expected of them at all times.