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How to Create an Effective Award Strategy
Organizations should implement an effective awards strategy in recognition programs to attract and retain top talent, rather than relying solely on cash bonuses. Research indicates that award-based recognition leads to longer-lasting feelings of appreciation among employees compared to cash, as many employees prefer physical items that represent their accomplishments. Key reasons for favoring awards include tangible reminders of achievements, the longevity of items compared to cash, and the impersonal nature of cash rewards.
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How to Create an Effective Award Strategy
- 1.
- 2. ORGANIZATIONS LOOKING TO ATTRACT AND retaintop talent can no longer rely on simply increasing employee compensation and offering cash bonuses.
- 3. In fact, employerscan overcome this challenge by implementing an EFFECTIVE awards STRATEGY in their recognition programs.
- 4. BUT... how do youdetermine which elements of an awards strategy can help in increasing employee engagement and company loyalty? Research from The Cicero Group commissioned by The O.C. Tanner Institute uncovered surprising findings.
- 5. WE SHOULD STARTBY ASKING THE right QUESTION.
- 6. What do you want? VS Whatmakes you feel most appreciated?
- 7. WHEN ASKED “what doyou want” employees always say
- 8. WHEN ASKED “what makesyou feel most appreciated?” the answer significantly changes.
- 9. THE MAJORITY of employeessay that an awards-based recognition program would cause longer lasting feelings of appreciation than its cash equivalent.
- 10. WHEN ENCOURAGED TO FOCUSON THE APPRECIATION EXPERIENCE, many employees acknowledged several limitations of cash as a recognition item.
- 11. TOP 4 REASONSWHY PEOPLE CHOOSE AN award-based recognition program: 1 See the item and remember the experience 42%
- 12. TOP 4 REASONSWHY PEOPLE CHOOSE AN award-based recognition program: 1 See the item and remember the experience 42% 2 Cash is spent quickly and forgotten 22%
- 13. TOP 4 REASONSWHY PEOPLE CHOOSE AN award-based recognition program: 1 See the item and remember the experience 42% 3 The item will be around longer than cash 21% 2 Cash is spent quickly and forgotten 22%
- 14. TOP 4 REASONSWHY PEOPLE CHOOSE AN award-based recognition program: 1 See the item and remember the experience 42% 3 The item will be around longer than cash 21% 2 Cash is spent quickly and forgotten 22% 4 Cash is spent on everyday items 19%
- 15. I THINK MOREOF AN OBJECT IS GOING TO REMIND YOU, that’s my hard work. That’s what I got. YOU GET CASH AND YOU’RE JUST GOING TO BLOW IT AWAY. — JOHN, Focus Group Participant
- 16. THE PROBLEM WITHCASH: 1 Cash is spent on non-award item (groceries, bills etc) 2 Cash is spent quickly and then forgotten 3 Cash is impersonal
- 17. I’D USE ITTO PAY BILLS. I do think a gift is better. — GENENE, Focus Group Participant
- 18. WHEN EMPLOYEES AREASKED TO DESCRIBE THE IDEAL RECOGNITION PROGRAM... 57% 21% included a cash reward included an award item
- 19. DESPITE THERE BEINGSTRONG CONSUMER PREFERENCE FOR CASH, it is unlikely to make an employee feel appreciated as effectively as an award item.
- 20. APPRECIATE GREAT WORK Source:The Cicero Group: Optimizing Employee Recognition Programs CONTACT US »