Getting employee recognition right

GETTING EMPLOYEE
RECOGNITION “RIGHT”

01 Building a Culture of Employee Recognition
Table of
Content
06 Final Tips
07 Case Study
1. Align with your company values
2. Align with your overall reward strategy
3. Empower everyone to recognize
4. Make it timely
5. Make it visible
6. Get leadership buy-in
01 Introduction
02 About the Author
03 What is Recognition?
04 Why is Recognition Important?
05 Designing Your Recognition Plan
Step 1: Why
Step 2: What
• Key decisions
• Types of recognition programs
• Recognition Awards
Step 3: How
• Manage
• Communicate
• Measure
02
03
04
06
18
21
09

Employee recognition has evolved
from being a nice way to thank
employees for their years of service,
to something that can have a
significant and meaningful impact
on your workforce and your
business.
Over the years, employee recognition has evolved from being a nice way
to thank employees for their years of service, to something that can
have a significant and meaningful impact on your workforce and your
business. And because of this, it’s no longer seen as a “nice to do’’, but a
“have to do”.
However, as with anything in life and in business, it’s all about how you
do it - do it the right way and you reap the benefits, do it the wrong way
and you waste your time, energy and your company’s money.
It’s this “right way” of doing recognition that I will explore in this eBook,
sharing tips and stories to help you achieve the many positive impacts
that it can deliver to your employees and your company.
01
Introduction

02
About the Author
Debra Corey is a highly experienced and award-
winning HR consultant, three-time author,
world-class speaker, and was named one of the
top 101 global employee engagement influencers.
She’s had a varied and exciting career over the last
20+ years, working for many well known global
companies where she’s developed and delivered
HR strategies in a rebellious way, pushing the
boundaries and challenging the status quo to truly
drive employee engagement.
Debra Corey

For your employees,
recognition is a way to:
See them by
acknowledging what
they’ve done;
Appreciate and value
them for how they’ve
contributed through
their actions and
behaviors;
Provide them feedback
to help them learn and
develop.
1
2
3
For your company,
recognition is a way to:
1
2
3
4
Motivate employees to
give and do their best;
Drive performance
across the organization;
Achieve goals and
objectives;
Celebrate individual,
team and company
successes.
03
What is Recognition?
Let’s start by looking at what recognition is. There
are many definitions for it, but the one that I’ve
developed over the years answers the question in
two ways - from the perspectives of the employee
and employer.

04
Why is Recognition Important?
Recognition is important for a wide variety of
reasons, some of them tangible and some of them intangible,
but all having positive impacts on both your employees and
your company. Here are six of the most common reasons:
1 Increases employee
engagement.
Let’s start with employee
engagement, something that
most companies focus on and
measure as they’ve come to see
the impact it can have on their
business. Studies have shown
the positive impact that high
employee engagement can
have on company sales, revenue,
customer service, safety and
turnover to name a few, showing
the true extent of its impact.
Recognition has been proven
to be a key driver of employee
engagement, with an article by
Deloitte saying that employee
engagement was 14 percent
higher in organizations that
practice employee recognition
than in those without
recognition.
happiness.
Employee happiness, like
employee engagement, can
also have a positive impact
on a business. In Shawn
Archer’s book “The Happiness
Advantage”, he talks about how
happiness leads to employees
feeling more positive, getting
more creative, becoming
Good Morning, John
Here’s a list of actions to help you get started quickly.

better at solving problems, and
developing into more effective
collaborators, all of which
contribute to a more successful
company.
A study by The Boston
Consulting Group that ranked
the 26 factors of happiness on
the job, found that the most
important single factor for all
people is appreciation for their
work, proving that employee
recognition is directly connected
to employee happiness.
trust.
Employee trust is another factor
that has been proven to have a
positive impact on the success
of a company. From productivity
to innovation, companies with
high levels of trust have been
found to outperform those with
low levels of trust.
And again, recognition has an
important part to play, with a
study by Work Human saying
that one of the most effective
ways of building trust for
managers and senior leaders is
through frequent recognition.
They found that employees
who were recognized were 34
percent more likely to trust
senior leaders and 33 percent
more likely to trust managers,
compared to those who had
never been recognized.
4 Increases productivity.
Another key element to the
success of your company
is productivity, since having
employees who work harder
and smarter leads to a more
productive work environment.

5 Reduces employee
turnover.
The next reason has to do with
the impact recognition can
have on employee turnover,
with employees staying longer
because they feel recognized.
One study found that employees
who do not feel adequately
recognized are twice as likely to
say they’ll quit in the next year,
and another study found that
awareness.
And finally, recognition can
increase awareness through
the feedback it provides to
employees. It lets them know
which of their efforts are
most appreciated and most
valued, giving them a sense
of achievement, and also an
awareness of what they should
continue to focus on to help
themselves and the business
succeed.
The added benefit is that in
organizations where recognition
is shared and celebrated socially
through technology, it’s not just
the employee who becomes
Studies have shown that
recognizing employees can
increase their productivity, with
one study showing that 69
percent of employees would
work harder if they felt their
efforts were better appreciated,
and another study showing that
employee productivity can jump
as much as 30 percent when
employees receive just one piece
of praise a day.
of the respondents who were
planning on switching jobs,
a lack of recognition was the
number one reason.
aware, but all those that view
and join in on the recognition.
Because of this, the awareness,
and the impact that it has,
is multiplied throughout the
workforce.

05
Designing Your Recognition Plan
Now that we’ve gotten the basic questions out of
the way, let’s now move onto how to make it happen,
how to build (or rebuild) your recognition plan. In
this section, I’ve broken it out into these three
key steps:

WHY?
STEP 01
The first thing to do is to ask yourself, “why” - why do you want and
need to recognize your workforce? As we all know, each business
has different objectives, so it’s important to develop your “why”, your
recognition strategy, around your unique and individual objectives.
Here are three things to consider as you develop your strategy:
The starting point is to align your recognition strategy with your
company’s mission, values and culture. By doing this it will help you
achieve your overall vision and goals (your mission), the actions
and behaviors you desire (your values), and reflect who you are as a
company (your culture). Do this and all the “pieces” fit together in a
cohesive picture and direction, don’t do this and there will be confusion
and a lack of focus.
1 Your company’s mission, values and culture.
According to research by SHRM and Work Human, 70 percent of companies
tie their recognition programs to company values.
2 Your business and people objectives.
Next, you want to align your recognition strategy with your business and
people objectives. For example, do you have objectives based around
developing new products to focus your workforce on innovation? Do
you have people objectives around developing stronger teams to focus
your workforce on collaboration? Consider these when developing your
recognition strategy so that it reinforces and drives employees to meet
these objectives.
According to research by Bersin & Associates, only 60 percent of companies tie
their recognition programs to business goals.
3 Your business and people challenges.
And finally, it’s important to align your recognition strategy with any
business and people challenges that you may have. For example, is
engagement, productivity, and/or retention a problem that could be
positively impacted by your recognition plan? Consider these as you
develop your strategy and individual programs so that they become a
strength and not a weakness.
According to the “2020 State of Recognition Report”, the five most common
objectives of recognition programs are:
1. Increase engagement - 88%
2. Reduce employee turnover - 63%
3. Create consistency and/or transparency - 55%
4. Improve cross functional and communication - 42%

WHAT?
STEP 02
The next thing to do is ask yourself “what” - what are you trying
to recognize (e.g. what is the criteria to be recognized) and what
recognition program or programs do you need to help you best deliver
on the strategy and objectives you created during Step 1.
During this step, I’ll address these three topics:
1. Key Decisions
Too often companies jump into selecting their recognition programs
without thinking through and addressing some key decisions. These
decisions are best discussed and made upfront so that they are
considered as you select and design your recognition programs.
Please find below five key decisions that I normally address when
helping companies design their recognition programs, and some
common responses. Keep in mind that these are not the only
responses, for based on your people, company, objectives and culture,
you may very well have different ones.
1. Key Decisions
What decisions need to be made upfront?
2. Types of Recognition Programs
What types of recognition programs are there
to choose from?
3. Recognition Awards
What types of awards (e.g. financial, non-financial) will
be given for each program and how to set budgets?

Key Decision Common Responses
1. What are you trying to recognize?
2. Who will give the recognition?
3. Who will receive the recognition?
4. What will they receive?
5. When will they receive it?
• Supporting/helping others (e.g.
colleagues, customers)
• Going above and beyond
• Completing key projects
• Key milestones
• Leadership team only
• Managers only
• All employees
• Certain job levels and/or certain
groups of employees
• All employees
• Non-financial
• Financial
• Specified times (e.g. every 5
• years, annually, monthly)
• Anytime
2. Types of Recognition Programs
Once you address the key decisions described above, you can use this
information to help you select which programs best align with them. For
example, if your response to key decision #4 about timing is that you
only want “anytime” recognition, meaning it can be given at any point
in time, then you wouldn’t put in place programs that are only given at
specified times.
Here are five of the most common types of recognition programs to
choose from:
This is where many companies begin their recognition journey, with a
top down approach to recognition, having managers responsible for
recognizing their employees. This type of program can be effective at
achieving many of the objectives listed in Step 1, showing employees
that they are seen and valued, and giving them feedback to help them
perform at their best, learning and growing at the same time.
1. Manager-Led Recognition
A study on motivation by McKinsey & Company found that praise and
commendation by your immediate manager is more motivating than
performance- based cash bonuses.
2. Peer-to-Peer Recognition
Peer-to-peer recognition has evolved naturally from manager-led
recognition, with many companies realizing that they can better achieve
their recognition strategy and objectives if employees at all levels have
the ability to recognize their peers. In fact, according to the “2020 State
of Recognition Report”, 66 percent of companies have a peer-to-peer
recognition program, showing how more companies are incorporating it
into their overall recognition plan.

As more companies see the impact that
teamwork can have on meeting their goals
and objectives, they’re developing team-based
recognition programs. This is where teams,
and not individuals, are recognized for their
collective contributions and achievements,
highlighting and encouraging successful
teamwork across their workforce.

There are a few reasons for this - first, because there will be more
employees looking for and capturing the important recognition
moments, and second, because as studies have found, this kind of
recognition can come across as less formal and more genuine than
manager-only recognition.
A study by SHRM found that peer-to-peer recognition is 35.7 percent
more likely to have a positive impact on financial results than
manager-only recognition.
4. Best-of-the Best Recognition
5. Milestone Awards
3. Team-Based Recognition
As more companies see the impact that teamwork can have on meeting
their goals and objectives, they’re developing team-based recognition
programs. This is where teams, and not individuals, are recognized
for their collective contributions and achievements, highlighting and
encouraging successful teamwork across their workforce.
An important thing to keep in mind with this type of program
is to recognize at the team level when there is a high level of
interdependence and collaboration between team members. For if this
does not exist, it could potentially demotivate individuals as they’ll see it
as not fair and inequitable.
Many companies have what I refer to as “best-of-the-best” recognition
This final type of recognition are “milestone” awards, which are awards
given when employees hit certain milestones as a way to thank them
for their efforts or to celebrate an occasion. Examples of these are
years of service, birthdays, or even the completion of a project.
With these types of recognition awards it’s important to keep in mind
that although they do help employees feel appreciated,
going back to the points listed in the section titled “What is
Recognition”, they do little to tick many of the other boxes, and thus the
programs, which is when awards are given to individuals (and
sometimes teams) at certain times throughout the year (e.g. annually,
quarterly or monthly) for being the best-of-the best. Winners are
selected in many ways, often through nominations, and a panel made
up of managers or the general workforce, to reflect their contributions
and impact above and beyond others.
An important thing to consider when designing these programs is
how you are going to handle not just the winners, but those who’ve
been nominated. Too often I’ve seen companies missing out on these
recognition moments by not recognizing the nominated population,
and focusing solely on the winners. It doesn’t have to cost anything to
let them know that they’ve been nominated, and it can go a long way in
helping them feel appreciated.

objectives of recognition. For this reason, I highly encourage you to not
rely solely on them, but put in place other programs to achieve these
objectives.
According to the “2020 State of Recognition Report”, the four most
common types of recognition programs are:
1. Peer-to-peer - 66%
2. Service anniversaries - 61%
3. Quarterly and/or annual awards - 37%
4. Performance-based incentives - 27%
According to the “2020 State of Recognition Report”, the most
common amount spent annually per employee is between $5
and $100.
There are varying studies on recognition budgets - a World at Work
study found that most recognition programs have a budget of
0.3% or less of the payroll budget, while a SHRM study suggests
that a recognition budget of 1% or more of total payroll is key for a
successful program.
3. Recognition Awards
One of the two most common questions I’m asked about recognition
are - 1) What award should I give for each program and 2) How much
money should we put in our recognition budget?
Now these figures are helpful, and are a good starting point, however
my preferred approach for determining recognition awards and budgets
is to start by asking yourself some key questions:
For individual recognition program awards:
1. Does the award need to be financial, does a non-financial gesture/
award achieve the same objective?
2. For financial awards, what is the “right” amount that reflects their
level of contribution?
3. How does the financial award “fit” in with other elements of reward,
e.g. pay, bonuses, incentives?
Note: The reason I suggest asking yourself this question is that often
I’ve seen companies where the recognition award is the same if not
more than an annual bonus award. In these situations, you need to
ask yourself - is the level of contribution for both the same? Often the
answer is no, as an annual bonus is for work achieved throughout the
year, where a recognition award is often for a shorter time frame and
effort. Bottom line, review them together to ensure they all fit together.
For recognition budgets:
1. How many different recognition programs will you have?
2. What are the financial awards for each program?
3. How many employees do you expect to receive awards for each of
the programs?
Note: For some of your programs this will be easy to predict, e.g. for

your monthly awards you may have five winners a month. For other
programs it may be more difficult, however, it’s still important to predict
and then measure and update it as you see what happens once the
programs are in place.
4. How much will you pay for the administration and communication
of your plan with your selected recognition provider?
HOW?
STEP 03
The final question to ask yourself is “how” - how will you ensure that
your recognition plan and individual recognition programs deliver on
your objectives once they’re in place? I want to stress that this is just
as important as designing the “right” recognition plan, for I’ve seen
fantastic recognition plans fail if this isn’t done well.
During this step, I’ll address these three topics:
1. Manage
How will you manage and operationalize your
recognition plan?
2. Communicate
How will you communicate your recognition programs to
ensure your employees engage with them?
3. Measure
How will you measure your recognition programs to
understand if/how they are meeting your objectives.
1. Manage
Let’s start with how you’ll manage your new recognition programs,
which I highly encourage you to address at the same time as when
you’re designing them. By doing this, you make sure that when you’re
ready to launch your new programs, you can manage the programs in a
way that you meet your objectives.
There are two ways to manage your programs, manually or through
a technology platform. I’ve done it both ways, but my preference is
the later, as it can deliver recognition in a more seamless, flexible and
global way. Let me explain what I mean using these three objectives:
• Seamless - One of the biggest reasons I’ve seen recognition plans
fail is because it’s not easy - not easy to give recognition, not easy
to receive recognition, and not easy to participate in the recognition
given to others. By making the recognition experience seamless,
meaning smooth and continuous, you remove hurdles that prevent

disengagement with your recognition programs.
• Flexible - Another challenge I’ve seen with recognition plans, is
that they aren’t flexible enough to meet your needs. It’s important
to build flexibility into your management approach and processes
so that if you need to change what and how you do things, you’ll be
able to do so with little hassle and effort.
• Global - And finally, you want to be able to manage your programs
in a global way, whether this means you are in multiple countries
or multiple locations within one country. Going back to the idea of
making things easy, this means making it easy for every employee
regardless of where they are, to have access to the system and,
when it comes to reward-based programs, have access to rewards
that are relevant and meaningful to them.
2. Communicate
If your company truly wants to harness the power of recognition to
achieve your objectives, you must communicate it in a way that informs,
engages, and appeals to their personal and emotional needs. To help
you with this, let me share with you a communication model, I wrote
about in my book “Effective HR Communication,” called the “IMPACT”
model:
• I = Investigation: This step involves understanding how your
employees like and need to receive the communication so that it
meets their needs.
• M = Medium: This step involves coming up with the most effective
medium to deliver messages in the most meaningful ways.
Common modes of medium are email, texts, videos, posters.
• P = Planning: This step involves planning multiple ways to
communicate over and over again to ensure your messages are
received and understood.
• A = Allies: This step involves bringing in allies, partners, to help you
develop and deliver the messages to get the most out of them.
• C = Content: This step involves creating content that will appeal
to your diverse workforce, meeting their needs and getting your
messages across effectively.
• T = Test: This step involves testing if and how your messages are
meeting your objectives.
By using this model, or the parts of the model that apply in your given
communication situation, you have a better chance of communicating
in an effective way to ensure engagement with your recognition
programs.
3. Measure
And finally, a key part of your “how” is how you measure the impact
of your recognition plan. It’s by measuring key metrics such as return
on investment (ROI), retention, employee engagement, productivity,
turnover, etc. It’s important to collect data on these metrics on a regular
basis, measuring them to show if and how the program has been
a success or failure, and identifying areas and opportunities
for improvement.

06Final Tips
Let me end by sharing with you six final tips to keep
in mind as you build, re-build and manage your
recognition programs.
As mentioned at the start of this eBook, recognition has been proven to
help you deliver on your company’s business objectives, and the same
is true of your company values. And for this reason, if you can align your
recognition plan and values to work together, then you have a much
better chance of achieving your objectives.
It is also important to align your recognition strategy and plan with your
overall reward strategy. Since recognition is just one element of your
rewards, along with pay, benefits, incentives, etc., it’s critical that they all
work together, completing the total rewards picture and objectives.
For example, if you have a reward strategy that encourages and rewards
teams through programs such as an annual team-based bonus, you
should build team-based recognition into your overall recognition plan.
If you have a reward strategy that says that all employees are treated
in a fair and consistent way through giving all employees the same
benefits, you should include all employees in your recognition programs,
giving them all the chance to give and receive recognition.
In order to build a culture of recognition, you need to empower each and
every employee to recognize one another. This means making peer-
1. Align with your
Company Values
2. Align with your overall
Reward Strategy
According to a study by SHRM, values-based recognition is 2 times
more likely to reinforce and drive business results.
The most common way of doing this is to link recognition moments
to your company values, meaning that each time an employee is
recognized the value that they have demonstrated is cited. This shows
a clear connection between an action and a values-related behavior, and
at the same time, increases awareness of the meaning behind each of
your important company values.
3. Empower Everyone
to Recognize

to-peer recognition an integral part of your recognition strategy and
programs.
There are many proven reasons for this including increased
performance, motivation, productivity and a sense of community and
belonging. In addition to this, it ensures that your entire workforce has
their eyes and ears open to recognition moments, and are not missing
any opportunity to recognize one another for their contributions and
support.
According to a study by SHRM, peer-to-peer recognition is 35.7%
more likely to have a positive impact on the financial results of an
organization than manager-only recognition.
For recognition to be effective it is important for it to be done in a timely
manner, with the recognition happening as near as possible to when
the action or behavior took place. Now this may seem obvious, but too
often I’ve heard people say that they’ve had to wait weeks, months or
even a year to be recognized.
This delay has a ripple effect as not only do your employees have to
wait to feel appreciated and learn from the recognition they receive,
but your company has to wait or completely miss out on the benefits
and impact that recognition can deliver in the form of productivity,
engagement, and so on.
Now this may seem obvious, but too often I’ve heard people say that
they’ve had to wait weeks, months or even a year to be recognized.
This delay has a ripple effect as not only do your employees have to
wait to feel appreciated and learn from the recognition they receive,
but your company has to wait or completely miss out on the benefits
and impact that recognition can deliver in the form of productivity,
engagement, and so on.
4. Make it Timely
5. Make it Visible
One of the great things about recognition is that it can not only have a
positive impact on the receiver, but also on others in the organization,
thus multiplying it’s positive impact. This can be achieved when you
make recognition visible across the organization, by sharing and
showcasing the recognition, which leads to these two outcomes:
It makes recognition social - When you share recognition moments it
creates a social event, inviting others to get involved by congratulating
and/or commenting on the recognition. This can translate into stronger
connections and relationships between employees to drive cooperation,
trust and overall workplace happiness.

Last, but certainly not the least, it is absolutely critical to get the buy-
in and support of your leadership team. They are the ones that set the
tone, with your entire workforce watching closely to see if and how they
engage with recognition to determine whether it is genuinely important
to the business, or just another one of those senseless initiatives.
Take the time to clearly explain to your leaders the impact of
recognition on the business (sharing those listed throughout this
eBook), ensuring they’ve bought into the difference it can make. Just
as important, take the time to explain how the programs work and what
good recognition looks like, again sharing much of what is included
throughout this eBook. Bottom line, make sure your leaders understand
that they have a crucial and “starring” role in the success of recognition,
It creates learning moments - Sharing recognition moments also
leads to “learning moments”, which is when employees learn through
what others are being recognized for. For example, if an employee is
recognized for developing a new process or concept, others not only
hear and learn about it, but understand that such actions are valued and
recognized at the company. This can lead to a workforce that is better
informed and aware of what others are doing, and learns through this
process.
6. Get Leadership Buy-in
and not think that they have a “supporting” role, waiting for HR to drive
and own recognition.

07
Case Study
Luminous Power Technologies is a powerful and trustworthy brand
with a wide range of innovative products in the power backup, home
electrical and residential solar space, including inverters, batteries,
solar solutions, and home electrical offerings such as fans, modular
switches and LED lighting.
They have 6,000 employees in over 36 countries who serve more
than 60,000 channel partners and millions of customers. Their motto
is “Customer Delight through Innovation and Passion”, and they are
passionate about innovating to make life comfortable and efficient.
They are also passionate about their people, innovating to support and
engage with them. An example is with their recognition program, where
they moved from a manual process involving printed certificates and
trophies to a digital process through the Empuls platform.
This has opened the door to a variety of new opportunities to recognize
employees, from celebrating work anniversaries and personal
milestones such as birthdays, births and weddings, to living their
company values and hitting sales targets.
They introduced peer-to-peer recognition with a nomination process,
where if employees feel that any of their peers across teams have done
good work, they can nominate them for individual or team recognition
awards, along with reward points which can be redeemed within the
platform.
This type of recognition is new to many of their workers, especially
those in their manufacturing sites, and it has been met with positive
feedback, as employees are finding it very easy and useful. Over 60%
of employees currently engage with the recognition platform, and they
continue to promote it to increase usage so that all employees have the
opportunity to be recognized and feel appreciated.

The fact that all of the recognition can be done online, remotely, and with
instant notifications to all those involved, really helps us build a culture of
appreciation at our firm a lot more seamlessly.
Govind Bisht, Assistant General Manager – Total Rewards

We believe in building a happy and engaged
workforce. And it’s made possible by
www.empuls.io

Getting employee recognition right

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