RECOGNITION PROGRAMMES
Recognition has major impact on corporate effectiveness
Lack of simple day-to-day recognition – acknowledgement or appreciation of what people have done – is an important cause of demotivation, and the reason why people leave their jobs, according to research by Michael Rose for the Chartered Institute of Personnel and Development.
At a time when recruiting and retaining talented staff and optimising performance are all critical, an effective recognition programme can thus be a source of competitive advantage, Rose says.
Recognition defined
For Rose, who is director of reward and recognition at Aon in London, a recognition programme is defined as:
Typically, a non-cash award given to employees in recognition of a high level of accomplishment or performance, such as customer care or support to colleagues, which is not dependent on achievement against a given target. It may be local and immediate, such as a voucher given by a supervisor or more formal and high profile, such as employee of the month.
"Catching people doing something right" is the essence of a recognition programme, "They seek to change behaviour by reinforcing positive action," according to Rose, who also cites management gurus and motivation experts, Carnegie, Hertzberg, Maslow, John Harvey-Jones and Ed Lawler in support of the proposition that people want and need to have their efforts recognised and so to feel important and appreciated.
For Rose, a recognition scheme is not a substitute for pay and should not depend on the achievement of predetermined targets. Recognition is more personal than cash, it is immediate rather than delayed, and it is more likely to be remembered by the recipient.
And while pay can amount to two-thirds of an organisation’ s costs, a very informal recognition scheme can cost almost nothing. Rose estimates from his own research that recognition schemes typically cost less than 0.5% of payroll.
In the workplace, people want immediate and specific personal congratulation from their manager for a job well done, so to Rose, recognition is a key leadership skill, but one that he believes it is easy to acquire through coaching.
Types of programme
Recognition programmes can be considered as a continuum, from simple, low-key day-to-day "thanks" through to major corporate programmes, although Rose takes the view that the informal thank you has a far greater impact than more formal, high-profile arrangements.
Evidence shows that "company-initiated" recognition, such as computer-generated birthday cards, has the least effect, while manager-initiated recognition is most effective.
Criteria for success
Recognition programmes can "sit alongside" the performance management system, Rose says, so that the formal annual review, which is remote from day-to-day activities is supported by immediate recognition throughout the year.
It is also vital to consider the kind of programme that would fit the organisational culture and other HR programmes, such as basic pay, bonuses and performance management. Employers should also consider how a recognition scheme would relate to the style and elements of leadership that are promoted in management development and training programmes.
Golden rules
Rose concludes by setting out some "golden rules" for recognition schemes, including:
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Want to know more?
Title: Rewarding Performance: Non-cash rewards, by Michael Rose, Chartered Institute of Personnel and Development.
Availability: Contact Plymbridge Distributors, tel: 01752 202301, email: orders@plymbridge.com
For a catalogue of all CIPD titles visit www.cipd.co.uk/publications.
Posted 1 March 2002