What Is The Recommended Ratio of Recognition to Rewards?

Setting up business rules in the design and program strategy stage for a new recognition program can very interesting. I often get asked what ratio to set up for the usage of their recognition to rewards in their programs. 

My answer is always the same. It all depends. 

The thing is the answer really depends on the industry you are in and the need for using rewards or not, and many other factors. For example, a major Silicon Valley technology company will have a significantly higher ratio of rewards to recognition expectation than would a healthcare organization in Texas. 

Here are a few guidelines to follow that might help you.

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Why It Takes Leadership To Make Recognition Happen

Hopefully, your organization has the leadership and engagement of senior leaders, managers, and staff, to make your recognition practices and programs happen the way they should.

Not all organizations are as fortunate to have things rolling forward and progressing in innovative ways. And whether it is you taking the leadership role for recognition, or senior leaders directing the action needed, its leadership that makes recognition happen. 

Leadership does not have to be a title. You just have to take the lead in something like employee recognition and then show others how to follow you. 

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How To Hold People Accountable for Giving Better Recognition

Holding people accountable for giving effective and meaningful recognition brings together something good—recognition—with something uncomfortable, like, accountability.

It takes courage to deal with the conflict of holding people accountable. And courage is exactly what good management requires.

Follow these accountability steps to move the dial on recognition giving.

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Should Recognition Focus on Your People or the Business?

Managers of organizational recognition practices and recognition programs are often torn between focusing on growth of people or on business results.

You’ll find some organizations create elaborate people strategies to prepare for the growth and development of their employees. Talent management strategies prepare now for the future. And recognition is always a part of the equation, especially when measuring employee engagement.

Then there are others who are strictly business. Their goal is to align recognition and rewards with helping to drive and achieve the strategic initiatives of their business goals.

So, the question is whether, as the owner of recognition in your organization, should you focus on people of the business?

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How Do You Know What and When To Reward

One of the questions I am often asked when it comes to rewards is what to reward people with as well as when are you supposed to give those rewards.

It’s important to remember that rewards can be tangible, monetary, or experiential in nature. This opens the door to all kinds of creative options and ideas for what to give to people or give them access to choose.

And broadly you give rewards to individuals or teams whenever they reach pre-set goals, a significant achievement, or a special service was performed.

Now let’s dig a little deeper so you can better understand these elements.

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How Adding Time and Effort Actually Enhances Your Rewards

I have always been a big advocate of the fact that it’s the quality of your recognition that makes it a big deal.

Time and time again, I have witnessed how when you put more of a personal touch into the recognition and rewards you give, the more meaningful and effective the effect will be on the recipient and on their performance. 

I have summed this principle up before by saying, when you give people recognition you don’t have to give them a reward; when you give people a reward, you must always accompany it with recognition.

Now I have a social science experiment to share with you that validates this principle.

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You Shouldn’t Have To Convince A Leader About Recognition

I love this quote from Marcus Buckingham,

“Great managers don’t need to be reminded of the power of praise.”

I think he’s right.

In those organizations where recognition flourishes as a way of doing things, you will always find leaders who get it. They know the importance of recognition. They personally strive to practice giving effective and meaningful recognition. And they encourage everyone to be exemplary recognition givers. (more…)

Never Let Organizational Culture Eat Up Your Strategy

Many years ago the late business management guru, Peter Drucker, purportedly said, “Culture eats strategy for breakfast.”

While there is still debate as to whether Drucker actually said the line or not, it was attributed to him by Mark Fields in 2006, and he later became the chief executive of the Ford Motor Company.

At the time Drucker probably made this statement there was a lot of talk about business strategy in the Ivy League business schools.

His point was well taken that you should never neglect culture.

However, as the authors Boris Groysberg, Jeremiah Lee, Jesse Price and J. Yo-Jud Cheng, of the recent Harvard Business Review article on The Leader’s Guide to Corporate Culture, point out, a strong organizational culture can be detrimental when misaligned with strategy. (more…)

How To Present Recognition’s Progress To Your Leadership Team

You are fortunate enough to have an executive sponsor for employee recognition and who supports all the managing of recognition related things that you do.

They are willing to go to bat for you and are exemplary in using the company recognition programs and expressing appreciation to employees.

Their expectation of you is to regularly provide them with high level results on how recognition is impacting the business.

After all, your executive has to present the numbers to the complete senior leadership team and collectively they approve your budget.

So what is the best way to present the progress and impact employee recognition is making to your senior leadership team?

At a bare minimum they will be expecting the following: (more…)

Can I Help You Change Your Mind?

For many years when giving workshops on how to be more effective and authentic in giving employee recognition, I often use the words “Beliefs – Behaviors – Results” in a PowerPoint® slide or on flip charts to help participants understand the power and differences of recognition and rewards.

It was much easier to talk about how one can impact behaviors and results than it was beliefs. Beliefs, of course, seemed so much more personal and unchangeable. Yet how often did faulty beliefs, hang ups and barriers get in the way of noticing and appreciating people’s great work.

Can we really do anything to alter people’s beliefs in the learning environment? Can we change people’s minds? (more…)