Employee recognition
Employee recognition is the timely, informal or formal acknowledgement of a person's behavior, effort, or business result that supports the organization's goals and values, and exceeds his superior's normal expectations. Recognition has been held to be a constructive response and a judgment made about a person's contribution, reflecting not just work performance but also personal dedication and engagement on a regular or ad hoc basis, and expressed formally or informally, individually or collectively, privately or publicly, and monetarily or non-monetarily.
Theoretical foundation
The track of scientific research around employee recognition and motivation was constructed on the foundation of early theories of behavioral science and psychology. The earliest scientific papers on employee recognition have tended to draw upon a combination of needs-based motivation theories and reinforcement theory as a foundation for the effects of employee recognition.Needs-based motivation
Needs-based motivation theories are based on the argument that humans have basic drives that motivate them to behave in ways that help them fulfill those needs.- Maslow's hierarchy of human needs: Maslow's model identifies five categories of needs: physiological, safety, belonging and love, esteem and self-actualization. These 'levels' of needs are arranged on the hierarchy in order of immediate effect on human development and subsequently, potency for influencing behavior. According to Maslow, individuals are never fully satisfied on any need level but once a class of needs is substantially met, it is no longer motivating for the individual. Human behavior is therefore presented as a rational activity directed at the satisfaction of successive levels of needs. Recognition schemes are based on the notion that individuals aim at the satisfaction of the esteem needs after fulfilling previous needs on the hierarchy. The esteem needs can be broken down into the need for self-esteem and the need for the esteem of others. The need for the esteem of others is required to be satisfied externally through status or prestige, recognition, and appreciation by others. The need for self-esteem is understood as the need to hold a high evaluation of oneself based upon real capacity, achievement, independence, and respect from others.
- Hertzberg dual-level needs theory : During his research, Hertzberg interviewed several hundred US professionals, asking them to name work experiences that made them feel "exceptionally good" about their jobs, as well as those that made them feel "exceptionally bad" about their jobs. After categorizing the responses, Herzberg found that factors that caused negative feelings were quite different from those that caused positive feelings. Respondents who felt good about their work cited factors that largely correspond with Maslow's needs, which are positioned higher on the hierarchy. This included achievement, recognition for achievement, the work itself, responsibility and growth or advancement. On the other hand, dissatisfied respondents tended to cite factors extrinsic to the job such as pay, working conditions, supervision, security, relationships with colleagues and company policies. Most of these factors correspond to Maslow's physiological and safety needs. Herzberg's findings led him to conclude that there exist two different spectrums: one set of 'hygiene' factors that make up a continuum from dissatisfaction to no dissatisfaction, and a second set of 'motivator' factors that make up a continuum from no satisfaction to satisfaction. Recognition, according to Herzberg, is a motivator whilst monetary rewards such as pay are necessary to prevent dissatisfaction but don't promote job satisfaction and motivation.
Reinforcement theory
According to Stajkovic and Luthans, there are three types of positive reinforcers that result in an increase in performance-related behaviors when contingently administered: pay, performance feedback and social recognition. Social recognition is defined as 'the use of verbal consequences, typically expressed by individuals, such as attention, recognition, commendations, compliments, and praise'. Therefore, reinforcement theory provides a theoretical basis for the positive effect of recognition employee performance by demonstrating that individuals who are recognized or rewarded for their performance are motivated to keep performing activities for which they have been recognized.
Types of employee recognition programs
According to Punke, recognition programs should be balanced between performance-based and value-based initiatives, but the programs should be composed of three methods: formal, informal and day-to-day recognition.Formal recognition
It consists of structured recognition programs with clearly defined objectives, processes, and criteria linked to rewarding and recognizing individuals, teams, or departments on a company-wide level for achieving specific business targets, exemplifying specific organizational values, or performing actions that go above and beyond normal work expectations. According to Punke, this approach is extremely organized recognition involving recognizing employees who have done so many years of service at the organization.Informal recognition
It focuses primarily on performance achievements, goal accomplishments, and other milestones by individuals or teams that may occur monthly or quarterly. It may include low-cost awards, refreshments, point-value incentives, gift cards, and certificates. Informal recognition programs have been identified to point out employee value and contribution at the right moment as a result of its instantaneous nature and the continuous changing work environment.Day-to-day recognition
It is a type of recognition practices that are frequent, low or no cost, often intangible and often reliant on interpersonal skills for positive feedback that can be given to all employees. According to Harrison, the day-to-day recognition brings the benefit of immediate and powerful reinforcement of desired behavior and sets an example to other employees of desired behavior that aligns with organizational objectives. To him, it gives individuals and teams at all levels the opportunity to recognize good work by other employees and teams, and it also gives the opportunity for them to be recognized on the spot for their own good work.Benefits
Employee recognition has been identified to be a highly effective motivational instrument that can have significant positive impact on employee job satisfaction and performance as well as overall organisational performance.When effective recognition is provided in the workplace, a favorable working environment is produced, which motivates employees to become committed to their work and excel in their performance. Highly motivated employees serve as the competitive advantage for an organisation because their performance leads an organization to well accomplishment of its goals and business strategy. However, a demotivated environment has been identified to produce low or courage-less employees who hardly practice their skills, lack inventiveness and are not fully commitment to the extent an organisation needs. By consistently and frequently applying formal, informal and everyday recognition programs, organisations are provided with a powerful tool for influencing employees to live the organisation's values and implement its focus. It also affords the organisation opportunity to highlight desired actions and behavior thereby creating role models for other employees. By specifically reinforcing expected behavior, organisations not only indicate to employees that their efforts are noticed and appreciated but also inculcate in them the organisational values, goals, objectives, priorities and their role in achieving them. As a motivational tool, employee recognition programs assist employees to see how they contribute to bottom-line results and how their contributions will be recognized and rewarded immediately. In any case formal, informal and every day recognition programs are able to satisfy both employees' and employers' needs as well as bring the maximum result and function for organizations.