TREND IN FOCUS
Recognition key to employee retention Creating a culture of appreciation to attract and keep talent
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ow, when many people are re-evaluating their priorities, recognizing employees for their contributions is more important than ever. Done right, recognition connects individuals to the basic human needs to feel valued, that our contributions matter, and that we belong. But in order to make that connection for employees, employers and managers must first connect with them.
Honoring the effort and the individual According to Suzanne Vickberg, PhD, research lead with Deloitte LLP, “In order to be effective and meaningful, employee recognition needs to work for the individual. A one-size-fits-all solution may be easier for the company, but it’s going to miss out on impact.” Citing a survey conducted by Deloitte Greenhouse Experience (The Practical Magic of ‘Thank You’) in which 16,000 professionals were asked how they want to be recognized, for what and by whom, Vickberg notes, “While there are some general preferences that hold across the board, there are some notable differences in how different employees prefer to be acknowledged and rewarded that deserve the attention of employers.” For example, while 75% of the individuals surveyed are satisfied with a ‘thank you’ for their everyday efforts, more than half prefer a verbal ‘thank you,’ and nearly a third, a ‘thank you’ in writing. In addition, employees have different preferences about the source of the recognition. “Some employees are completely content with recognition from their direct supervisor,” says Vickberg, “while others want to be acknowledged by leadership above their supervisor, and even others would rather it come from their colleagues.” And as for how that recognition is delivered, the survey found that most people prefer recognition that is either shared with a few people or delivered privately, rather than widely shared. “These subtle differences of preference have a big impact on the employee recognition experience,” she says. “Ultimately, an employer who connects with their staff to learn their individual preferences will derive greater benefits from any recognition effort they implement.”
It’s not all about the Benjamins Another finding of the Deloitte study that’s likely to come as a surprise and a relief to business owners has to do with forms of recognition. Vickberg says, “While a ‘thank you’ was sufficient for daily achievements, we were interested in how employees wanted to be recognized for significant accomplishments. Given a choice between new growth opportunities, bonuses, salary increases, or highperformance ratings, employees overwhelmingly (47%) preferred new growth opportunities. Salary increases came in at 23%, highperformance ratings at 21%, and bonuses at 10%. This is great news for employers concerned about the cost of recognition. Not only does offering new growth opportunities come at no cost, but it also validates that the individual belongs in your organization.” Build a culture, not a program According to Vickberg, the key to any recognition effort is the commitment of leadership. “In order to be meaningful, recognition must happen at all levels, all the time. If you manage managers, you need to be asking them, ‘Who’s someone who did something great this week? Did you thank them?’ Those managers and those below them will model their behavior around that and, in time, you’ll build a culture where everyone values the contributions of others.”
“ In order to be meaningful, recognition must happen at all levels, all the time.” —SUZANNE VICKBERG, DELOITTE LLP
Redirecting recognition brings rewards For Matt Kuehlhorn, owner of Kooler Homes in Gunnison, CO, building a culture of recognition has been a process. “Early on, I created the ‘Dipsh*t’ award that was presented to the person who had the most to learn. It took me a while to realize that was the wrong approach to building culture,” he says. “Recently, we changed it up and now invite employees to nominate someone who demonstrates tenacity and pushes us to be better. Dubbed the Tenaz Award, a Spanish translation of tenacious, it’s presented quarterly and winners get a trophy and a $200 tool voucher. I’m planning to recognize all the winners at the end of the year but I’m still nailing down the details.” Two quarters into the new effort, Kuehlhorn says it’s been well received by the team. “They appreciate the opportunity to acknowledge the good work done by their peers, and it definitely contributes to our sense of team.” Sep/Oct 2021 | inPAINT
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