IDS HR StudyPlus 820, Spring 2006

Employee recognition schemes

• Considers formal employee recognition award schemes, a popular method for identifying role models in the organisation who do something out of the ordinary
• Examines the aims of recognition schemes and how they work in practice, including eligibility, nominations, different levels of recognition, award types and values, judging panels and how to maintain interest in the scheme over time
• Features detailed case studies of recognition schemes in six organisations
• Includes a directory of 32 specialist suppliers of non-cash incentives, the usual award medium

Recognition schemes have come a long way since the days when managers first began singling out an ‘employee of the month’, and they are now likely to be championed at the highest levels of a company. Today, approaches to recognition are often just one element of wider strategies for building corporate reputations and enhancing the ‘employer brand’. By visibly recognising and rewarding outstanding employee contributions, employers can be seen to be delivering on their claim that ‘employers are our greatest asset’. And employees who feel properly valued are likely to be more engaged, with consequent benefits for the business.

The concept of recognition is perhaps most effective when managers or employees are empowered to respond immediately when they see actions or activities that merit an award. This type of ‘spontaneous’ recognition might be in the form of a simple ‘thank you’ card, for example. In other instances, recognition programmes operate on a much more formal footing, incorporating timetables and procedures for nominating and selecting ‘winners’. The key point is that schemes are not there to focus primarily on employees who are just doing their everyday job well. Instead, the aim is to highlight employees who have done something out of the ordinary, going ‘above and beyond the call of duty’.

Six detailed case studies explore why a range of organisations introduced a formal recognition scheme, how they organise procedures for nominating staff and selecting award winners and highlight the various levels of award. Key issues such as the importance of checking nominations, the tax and NIC aspects of non-cash incentives and building in an element of surprise to award presentations are also considered.

What’s in this StudyPlus?

This 56-page publication includes the following sections:

Overview

• Building the credibility of a scheme

Analysis

• Why have a scheme?
• Scheme eligibility
• The nomination process
• Various levels of recognition
• Award types and values

Company practice

Six detailed case studies of the employee recognition schemes at:

United Utilities North West
Intelligent Finance
Mindshare
Alpha Airports Group
Hilti
Tower Hamlets Group

Guide to suppliers

• Choosing a supplier of non-cash incentives
• Checklist of key issues when selecting a supplier
• Details of the services offered by 32 specialist suppliers