Employee Rewards & Recognition Fundamentals
What does recognition look like?
At its core, employee recognition is the act of acknowledging and appreciating employees for their contributions to the company.
It could be a pat on the back for a job well done, a social media shout-out for a great new idea, or even a bonus for meeting a monthly goal.
Here are some benefits of impactful rewards and recognition:
Why are companies going digital with R&R?
Employees today seek frequent, agile, and instant recognition.
It may be impossible for leaders to go up to each employee and thank them for their day-to-today efforts. And with more people working remotely, companies are looking for ways to engage employees.
Here is where the role of digital R&R tools comes into play.
In 2021, we conducted a study on R&R trends for remote working. Based on 248 responses from industry experts, we got the following key findings:
- 58% of HRs said adopting digital R&R platforms impacts overall engagement and retention.
- 79% of respondents want an agile R&R platform for remote employees.
- 55% of respondents want mobile-friendly R&R platforms for remote workers.
- 53% of respondents said digital R&R platforms enhance HR efficiency while working remotely.
Thus, a digital solution to R&R is no longer a luxury—it has become a strategic imperative.
It makes the whole process smoother, faster, regular, and more frequent.
Forms of rewards and recognition
Rewards and recognition can take many forms. Let’s have a look at some of them.
Monetary recognition means that the employees are given a financial reward when they show desired behavior at work. They could be a cash award, gift cards, or even discretionary company shares.
The monetary awards in Vantage Rewards are based on the points-based reward system.
These points are tied up to a specific monetary value. Employees can redeem these points for merchandise and gift vouchers.
There are two types of monetary awards in Vantage Rewards:
1. Normal awards
2. Panel awards
Normal awards are monetary awards that don’t require any voting. A manager nominates an employee for the award.
They decide on the monetary value and cite a reason for the reward. Finally, the reward is conferred to the employee after it has been approved by an approver.
Panel Awards are monetary awards that are based on a voting system. It is a multi-level approver award system that provides employees with a fair and equal chance to win.
A panel award is created for a certain period of time. Within that period, managers nominate employees for the award. A panel of approvers vote on the nominated employees and a winner selector then selects the winner(s) based on the votes.
Non-monetary awards are intangible forms of acknowledgment whose worth cannot be measured definitively. It can be a meaningful ‘well-done’, a high-five, or a special shout-out on social media. These gestures are excellent sources of motivation and play a critical role in employee retention.
In Vantage Rewards, non-monetary awards are given to employees in the form of badges. Badges are customizable and can be used for spot recognition.
Service milestone awards celebrate the tenure of employees who have worked with the company for a considerable amount of time. It facilitates peers to give out anniversary wishes and congratulatory posts.
There are two types of service awards in Vantage Rewards:
1. Long Service Awards (LSA)
2. Service Yearbook
Long Service Awards (LSA)
These are used to recognize employee tenure and are usually accompanied with e-certificates or monetary awards.
It is a personalized online yearbook that allows peers to share congratulatory messages for an employee’s service anniversary.