Meaningful tokens of appreciation: cash awards aren't the only way to motivate your workforce

HR Magazine, August, 2004 by Charlotte Garvey

In addition to employee appreciation week, AFLAC sponsors other recognition programs that Douglas describes as hybrid because they comprise multiple components. The programs include cash rewards for innovative ideas, with the top three winners honored at the end of employee appreciation week. Also, throughout the year, division heads are encouraged to reward employees who perform "above and beyond the call of duty." The rewards can include stock options, cash or time off.

At T. Rowe Price, the Spotlight on Excellence program also underscores the company's values, says Cathy Plakatoris, vice president for recruiting, retention and development at the Baltimore-based financial services company. In addition to a spontaneous, on-the-spot program for a specific achievement, which includes handwritten and electronic thank-you messages, T. Rowe Price uses a more formal recognition program to focus on employees who in the long run do work that embodies principles that the company wants to emphasize. Peers or managers are encouraged to nominate employees whose work demonstrates teamwork, service, leadership, integrity or initiative.

In addition to supporting T. Rowe Price's strategic goals, the recognition program is designed to "continue to improve associate satisfaction and morale," says Plakatoris. "Recognition really is very important to the associates. They have a lot of fun" with the programs, which include celebrations.

For some companies, recognition also is about employee visibility. Employers hope that employees who see someone getting kudos will aspire to achieve similarly so they too can be recognized, with the employer benefiting from all the achievements.

But not everyone gets a kick out of being seen parking in the employee of the month space; the personal touch remains a key factor in how recognition is perceived by employees. Experts suggest that managers or peers carefully consider the way in which each employee would appreciate being recognized.

"As a rule of thumb, public recognition is desired by most employees--but not all," says Nelson. "It would be wrong to give an employee public recognition when he didn't want that and was embarrassed by it." A manager who knows his employees well should have a handle on how to recognize them in a way that is appreciated by each individual, whether it be in a meeting with a client, in a hallway among co-workers or privately.

"Good recognition really does require managers to become better managers," says Robinson. Implementing recognition programs requires time and thought, "which implies a commitment on the part of management."

Some employers emphasize the importance of the recognition program to managers by providing training up-front and then assessing how much recognition is going on through the annual evaluation process. At T. Rowe Price, recognition is built in to the supervisor training curricula. "We make sure people understand the value of recognizing staff," says Plakatoris.

Boeing emphasizes spontaneity and the personal touch in its Pride@Boeing program. The company has a spot recognition, "instant awards" program that is simple and accessible to peers and managers alike, says Eskil, head administrator of the recognition and service awards program for the company's 10,000-employee engineering group in Puget Sound.