How To Increase Employee Engagement Through Recognition And Rewards

According to Gallup data, employee engagement rose two points to 32% after hitting an 11-year low in the first quarter of 2024. While the increase provides a glimmer of optimism, it still leaves a staggering 68% of American workers who are either not engaged or actively disengaged from their jobs. One way to boost employee engagement is to focus on ensuring employees receive the appreciation they deserve. In fact, Gallup confirms that employees are four times as likely to be engaged at work if they strongly agree to receiving the right amount of recognition for their efforts.

Employee recognition involves rewarding employees for their service and contributions. It can be given in the form of praise or more tangible items like gift cards and bonuses. Recognition programs not only increase engagement but also boost loyalty and productivity. In addition, routinely appreciating employees creates a positive work culture and promotes stronger emotional connections.

Now that hybrid and remote teams are the new normal, companies must ensure that all employees feel equally valued. Let’s review a few effective ways to do that.

Develop a comprehensive strategy

Begin by assessing how your employees feel about existing recognition practices. This step is critical to learning about what types of appreciation are valued and areas for improvement. Based on those insights, develop a comprehensive framework. The program should include a mix of intrinsic and extrinsic rewards. Set specific, measurable objectives like lowering turnover rates or increasing employee engagement. Be sure to incorporate a peer-to-peer recognition component which fosters camaraderie and teamwork. Then, communicate and launch the program. Once it’s in place, monitor its effectiveness over time. By regularly reviewing key data points, you’ll be able to adjust accordingly.

Consider generational differences

For the first time, five generations are working side by side. When employing a multigenerational workforce, it’s critical to understand different age groups and what motivates them. While some recognition methods transcend generations, there are some nuances. For example, a Gallup study reveals that younger employees are more likely to want frequent recognition than their older counterparts. Specifically, Gen Z employees and younger millennials are 73% more likely than baby boomers to admit they want to be recognized at least a few times a month. In contrast, Gen X and baby boomer employees are inclined to say they never want recognition.

Recognize all employee segments

According to research by Empuls, a SaaS platform and a leader in AI-led employee rewards and engagement solutions, frontline and gig workers are not recognized as often as their teammates. Yet improving employee engagement requires acknowledging all employee segments. To build a cohesive culture, recognize employee contributions across the organization. Make real-time virtual recognition a priority to ensure fully remote workers feel seen and heard. By ensuring a broader reach through targeted recognition programs, companies can increase employee engagement while fostering a more inclusive and positive work environment.

Leverage experiential rewards

While traditional monetary awards are often associated with employee recognition programs, most employees prefer non-cash incentives. That’s where experiential rewards—non-monetary gifts that provide employees with memorable experiences—come into play. Some benefits of offering experiential rewards include fulfilling aspirations, encouraging work-life balance and enhancing employee well-being.

Some creative ideas include:

• A spa day
• A cooking class
• A winery tour
• A sunset cruise
• An indoor skydiving experience

Most importantly, ask your team members what experiences most resonate with them. The more aligned you are with the desires of your team, the more successful you will be at increasing employee engagement.

Create a flexible reward system

A flexible reward system for employee recognition caters to diverse preferences. A primary example is creating a point-based system that allows team members to accumulate points for achievements. In turn, they can redeem those points for specific incentives. To further personalize the experience, offer a catalog of rewards that employees can choose from via an online platform. Include a range of options, including training courses, special events and experiential gifts. Through careful planning and execution, you can boost morale and encourage increased employee engagement.

In today’s war for talent, organizations should not overlook the power of employee recognition. The direct correlation between employee engagement and receiving regular praise is undeniable. By following these strategies, you’ll acknowledge your employee’s best work while building a culture of collaboration, loyalty and performance.