7 Common Employee Recognition Mistakes Companies Make

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7 Common Employee Recognition Mistakes Companies Make

According to a recent study, 80 percent of employers have some type of employee recognition program in place. The majority of companies invest in employee recognition because they realize the many benefits — including lower turnover rates, improved job performance, and better workplace morale — that this type of program has to offer.

Unfortunately, all too often, employers with good intentions fail to create an employee recognition program that maximizes these benefits. In fact, in some cases, employers make several mistakes when developing their recognition program that can cause more harm than good.

To ensure your company’s employee recognition program isn’t prone to any of these problems, here’s a look at the top seven mistakes companies make when creating an employee recognition program.

1. Lack of Transparency

The only way an employee recognition program will work effectively is if your employees view it as a fair and unbiased process. It’s crucial that you offer transparency with your program. All employees, within every level of the company, should understand how your recognition program works.

2. No Set Goals

It’s important to set clear goals for your employee recognition program right from the start. Do you want to enhance employee engagement? Increase retention rates? Improve production rates? Lower absenteeism? Without clear goals in place, it will be impossible to measure the effectiveness of your program.

3. Wrong Rewards

A major mistake many employers make is thinking that they know what their employees want. You can take as many guesses as you want as to what rewards will motivate your staff, but the only way to know for sure is to ask them. Pulse surveys and employee polls can help you determine the best benefits for your recognition program. Remember, without the right motivation, it will be challenging to create an effective program.

4. Poor Promotion

Many employers fall prey to the “create it and forget it” mistake. Don’t erroneously believe that if you create an employee recognition program, your team will use it without reminders. You must make your recognition program a priority if you want to reap the benefits from it. Be sure to promote the program at company-wide meetings, manager meetings, in-house newsletters, and by other means.

5. No Follow-Through

Implementing an employee recognition program may sound like a great idea, but it takes a commitment from your whole team to make it work. Developing the program is the first step, and then you must entice your management to follow through with action. Leaders within the company should set an example by utilizing the recognition program on a regular basis.

6. Inconsistency

The last thing you want to do is create an inconsistent recognition program. When you have some managers and supervisors using the program while others do not, it can frustrate your employees. In fact, it can make your employees feel that the program is unfair, which can destroy its effectiveness. Using regular promotions and ensuring top management remains consistent with their recognition can help to create a culture of recognition within the company.

7. Manual or Hard-to-Use System

Another common mistake many employers make is to rely on a manual process for their recognition program. Certainly, employee recognition is important, but so are many other tasks your employees complete every day. To make the most of your recognition program, it’s vital that you make the process as quick and easy as possible. Employee recognition software can streamline the process and enable your staff to recognize an employee in a matter of minutes.

Employee recognition can provide a wide range of benefits for your company, but only if it is developed properly and managed well. If your company makes any of the common mistakes listed above, it is never too late to turn it around and reap the benefits. Learn more about how to create an effective employee recognition program by contacting CoreCentive today.