Building employee commitment to increase company performance

With turnover rates and training costs at an all time high, companies need to turn to recognition solutions that make the right connection. William M Sarno, Director of Business Development at Visions Awards and Awardcraft explains how incorporating symbolic recognition helps employees make a personal connection to their company.

HRM. How have recognition strategies changed in recent years? What trends have you noticed in the recognition segment?
WS. There has been a shift back to a more personalized approach. Too often service award programs, spot recognition, performance management and incentives fail to make the emotional tie between the employee and their company. Symbolic recognition in many cases has been replaced with lifestyle “choice” only programs creating a disconnect with the recipient by not capturing the true essence of the desired outcome. Today’s trends show that a comprehensive recognition program includes a cross-section of incentives, rewards, awards and recognition. There is no single right solution, but rather a combination of elements that create a strong culture that embraces employees.

HRM. Why do you believe that there was a move away from symbolic in favor of choice programs?
WS. Unfortunately money and jobs were plentiful during the 1980s and 1990s, leading companies to try anything to lure prospective talent. It appears that many companies forgot about Abraham Maslow’s theory (his hierarchy of needs). At the top of the pyramid resides self-actualization which includes a person’s need to feel satisfied with his or her performance and their contribution in the workplace. It is more important to focus on the “how and why” you recognize someone and creating a significant experience than the actual “what” they are receiving.

In a recent article “Younger Workers Prefer Praise,” the author Chad Graham asserts that that the best way to retain talent in tight job markets might be through the use of “glowing memos” and “shiny trophies.” Today’s generation Y or so-called Millennials – while tech savvy, independent and educated – revel in and even crave constant praise. Young workers are looking for a connection to their workplace that embodies meaning and relevance to their lives. Failure to provide this experience means that they will be looking elsewhere to find it.

HRM. So what are the major differences between recognition, awards, rewards, and incentives and what makes a good mix?
WS. Recognition is how an organization commemorates an accomplishment. Recognition can be non-material, but most of the time there is a material symbol that the recipient and peers see to reinforce the accomplishment. Awards are the tangible things that are given to participants who attain goals. They “should” be accompanied by recognition, but are rarely so. Rewards are the “carrots” that organizations use to influence clients. Incentives are defined as an offering made by a company that creates a short-term opportunity for me to “get” something by “doing” something.

HRM. What makes “symbolic” recognition so important to an organization?
WS. Recognition in all forms is positive for a company’s culture and growth. Every recognition program promotes self-esteem and value, which is a common aspiration-to be acknowledged for a job well done. “Symbolic” recognition serves as a constant reminder of the individual accomplishment. In many cases that individual accomplishment will motivate others, creating a ripple effect throughout the organization’s culture. Companies can utilize symbolic awards to help brand their recognition strategy by providing daily visible and tangible reinforcement that their company acknowledges the efforts of it most valuable asset; its people.

HRM. Why do companies continue to waste money training and hiring new employees when they could be rewarding current talent and reducing wasted capital?
WS. With Gallop polls reporting that effective recognition programs can lead to 50 percent less turnover and 27 percent higher profits, it would seem that it would be much more profitable for a company to invest in recognition strategies that address lost revenues in these categories. Human capital is one of the top three expenditures within a company. Introducing simple recognition solutions within the first 90 days of hire can make a significant impact on new employees. As an example, a company may recognize each and every employee with a symbolic award that includes the individuals name and their date of hire.

HRM. Are there any additional keys to consider when implementing a recognition program?
WS. Only that you make sure to create a program that is fair, consistent and all inclusive regardless of someone’s position within the company. Be sure to align the strategy with the company’s goals and be certain to communicate the objectives of the plan throughout the organization. High visibility is key when it comes to consistent implementation.

William Sarno is the Director of New Business Development for Visions Awards and Awardcraft. With over 25 years in the corporate identity, incentive, recognition and integrated merchandise industry, Sarno has built an impeccable reputation in management and service for Fortune 500 clients through: integrated corporate-branded merchandise campaigns, workplace recognition solutions, incentive / performance management, program design, development and implementation, and marketing support.