Employee rewards and recognition

The best employees are those who understand the real contribution that they make, and who know that their work is valued. These perceptions also tell employers much about how well they are leading and motivating the workforce to achieve its best.

A fundamental issue for any employees is the response to the question: do you feel valued by your employer?

That is essentially what the KGWI was seeking in asking: do you feel that your efforts at work are recognised and rewarded? In response, only 38 percent of respondents in Europe said that their efforts at work were recognised and rewarded. Gen X feel slightly less valued than both baby boomers and Gen Y.

It’s worth noting also that the result in Europe was significantly lower than in Asia Pacific (50 percent) and North America (49 percent).

The results highlight an important element in the complex mix that contributes to employee morale, productivity, and even consumer confidence.

Employees who know their work is appreciated have better morale and are more likely to make a positive contribution.

Unfortunately, many employees do not receive the feedback and encouragement that they probably deserve. Simple feedback for a job well done can make a world of difference and help to lift morale and raise productive effort. For employers, it’s easy to overlook. When this becomes entrenched across an organisation, we set a pattern for sub-standard performance, poor morale and higher staff turnover.

It’s also possible to see discernable differences across both countries and industry sectors in the way employees interpret their value to employers.

Rewarding employee success

Some employers might ponder how they can overcome this problem when it arises. They might consider options such as employee engagement programs, remuneration reviews or costly outsourced consultancies.

The good news is that none of this may be necessary. The survey shows that when employees know that their work is well-received, the most common form this takes is simply being “noticed by management”. More than two-thirds say that their skills are noticed by management, while 20 percent receive bonuses or incentives, and 10 percent are acknowledged through employee recognition programs.

Preparing employees for the future

Another measure of the way that employees actually feel about their employer is canvassed with the question: Do you believe your boss has done a good job preparing you for future success?

Only one-third of respondents say that their bosses have done a good job in preparing them for future success. Gen Y feel they are better prepared for the future than Gen X or baby boomers.

The response to this question reveals much about a collective psyche that goes to the very heart of employee prosperity, and capacity to remain productive into the future.

One of the overwhelming needs or employees is for their employers to help them to prepare for the future. No-one knows what the future holds. Economic cycles, structural change and individual circumstances all impose great uncertainty for businesses and individuals.

Most employees understand that this uncertainty means there is no such thing as a job-for-life, and that there will inevitably be periods of career turbulence.

In this climate, employees want their bosses to equip them with the skills and flexibility to cope with whatever lies ahead. In one sense, their current job is just one step along a pathway to future prosperity and job satisfaction. Employers who help prepare their workforce for the future are employers-of-choice. They are not just focusing on day-to-day priorities – they are assisting staff to build capabilities and resilience to deal with the future.

Willingness to recommend employer

It’s the oldest question the marketing textbook - would you buy again from this supplier?

A similar question applies to employers - would you recommend this employer to your friends or family?

Slightly less than half of all respondents (49 percent) would be prepared to recommend their current employer to friends or acquaintances. Gen Y are significantly more likely to make a positive recommendation than either Gen X or baby boomers.

Employers who receive a positive recommendation have accomplished a major competitive advantage. They have secured the approval of the most credible and trusted sources of advice about a prospective place to work.

The proliferation of social media has turned an organisation’s employees (and former employees) into an authoritative source of information. It is said that an unhappy customer tells scores of their friends and acquaintances. It’s the same with a disenchanted employee.

When employees do make a positive recommendation about an employer, the elements they emphasise are the work environment and the nature of the work. They tend to downplay factors such as salary, training, career progression and values.

However, when they make a negative recommendation, the main factors they highlight in their decision are the quality of the leadership, the poor work environment and the lack of career progress.

What is clear is that the issue of leadership becomes an increasingly important one as employees mature, while lack of upward mobility is felt most acutely by younger workers.

What is beyond question is that the views of employees carry considerable weight. There are few people who, when offered a job, will not seek to discuss it with friends, family and those who may already work with the organisation.

Employees who are genuinely happy and appreciated in their work become a firm’s best ambassadors.  Their views send a clear signal about how people are managed and the best places to work, and they have a significant impact on the ability of a business to attract and retain talent.