How often have you heard senior leaders, especially at Annual Conferences, say ‘Our people are our greatest asset’, only for those words to be forgotten once the event ends?
At Axiom, we agree; your people are your greatest asset, they are almost certainly your most expensive one. And they are an asset which is difficult to acquire and challenging to keep, let alone keep motivated, so it is time to take action.
In this blog, Axiom’s employee experience expert, Christina Dolding, explores how best practice in employee recognition doesn’t have to be expensive, yet is worth its weight in gold. Recognising colleagues helps them feel appreciated and truly valued. In turn, they will add value and repay your ‘investment’ many times over.
A big thank you – why employee recognition matters
Recent research, undertaken by O.C. Tanner and published in their Global Culture Report, gathered data and insights from 38,075 workers from 27 countries. It found that when recognition happens frequently and in meaningful ways, it positively impacts a number of business outcomes:
- Recognition makes employees eight times’ more likely to feel a strong sense of belonging
- They are five times more likely to want to stay with the company for two years or more
- Rates of absenteeism are reduced
- Levels of burnout are significantly reduced
And further research tells us 83% of survey participants said they felt more productive if a manager truly appreciated or cared about them.
Adding to the above, my personal experience gained in over two decades in this space also points to an increase in morale, a positive company culture, greater levels of employee advocacy, and better customer experience.
We can all say a big ‘thank you’ to that.
Employee recognition – what could possibly go wrong?
With both evidence and experience clearly pointing to the many benefits of recognition, what could go wrong? Well, quite a few things actually. Here are some to watch out for:
- Generic praise – vacuous and unsupported plaudits such as ‘Way to go, Jo’! Or ‘Good job, Rob’ don’t work. What was good? When did it happen? What difference did it make? How can it be replicated or improved?
- Inconsistency – in week one we embrace best practice, the rest of the month we do not. Or we do it in one part of the business, but not in others. Colleagues talk to each other and resentment can creep in – that’s not what you had in mind.
- Favouritism – or the perception of it. Recognition needs to be merited, fair, and fairly distributed. But don’t push it to the point of tokenism, for example, ‘we haven’t recognised anyone in compliance for a while’ or in location ‘x’ so therefore…
- A lack of transparency – if thanks only happen behind closed doors, people wonder who else is being recognised. If recognition feels random or selective, it can fuel suspicion of favouritism. By making appreciation visible – and even sharing it up the leadership chain – you remove those doubts.
- Forgetting remote workers – recognition for these often-isolated colleagues is more important than ever. The same applies to colleagues working in remote offices and in different time zones.
- Not taking note of cultural norms – colleagues like to be recognised in different ways. Just because you like to be recognised in a certain way doesn’t mean it works for everyone. The best technique here is to ask your colleagues how they would like to be acknowledged.
- Throwing money at recognition – monetary rewards can be an expensive way to drive the wrong behaviours. Recognition, and its close friend motivation, comes in many guises. Of course, I explore many other ways to recognise colleagues later in this blog.
These mistakes don’t just dilute impact – they can actively damage trust and motivation.
When delivered carefully, employee recognition will be seen as fair, open, and something everyone can learn from.
Employee recognition – what works best?
There’s no one-size-fits-all solution.
It seems obvious, but what works best is what your colleagues would most appreciate, so ask them! Dinner with the leadership team might inspire some people, and be a living nightmare for others.
Over the years, I’ve seen some great examples of recognition. Here are some to consider. They can be blended, mixed, and matched to meet your needs.
Formal Recognition
This type of appreciation is often scheduled and structured. It is aligned with specific company goals and values to drive desired behaviours and culture:
- Annual award dinners – international, national, or local
- Shout-outs at conferences or through internal media and social channels
- Vouchers or choosing from a range of gifts (just be aware of local tax laws)
- Service awards for years of employment
- Active participation in a ‘think tank’ or working party
- Promotions and performance bonuses
Informal Recognition
Spontaneous and immediate, providing regular feedback and showing appreciation day-to-day. Beware though, this spontaneity can trigger the ‘watch-outs’ listed above.
- A quick verbal ‘thank you’
- Personalised handwritten notes
- A shout-out on an MS Teams call
- A small gift of appreciation (avoid stereotypes such as beer for the boys, flowers for female colleagues – yes, it still happens)
- Time off to say thank you
Public Recognition
Acknowledgement in front of a wider audience:
- Features in company newsletters or social media
- A speaking slot at a conference or an MS Teams call
- Commendations, external achievements, or awards
- Sharing ‘customer praise letters’ and articles in the press
- Being named ’employee of the month’ – but keep posters up to date. It sends a signal if no one is shown as employee of the month, or there hasn’t been one for a while – as I saw in a hospitality setting recently
Private Recognition
One-on-one appreciation. Beware though, a lack of transparency could fuel conspiracy theories.
- A private one-on-one conversation, expressing appreciation
- A call from the ‘boss’
- A private thank-you note – perhaps from a senior leader or the ‘big boss’
- Being taken out for coffee or lunch to say a heartfelt thank you
The most effective recognition strategies mix these approaches, while ensuring fairness and consistency across the organisation.
Recognition in action – a simple habit that made a big impact
Until relatively recently I was a senior leader in the corporate world. There I built a simple ritual into every week: the Friday ‘Thank a colleague’ email.
Here’s how it worked:
Each Friday, I invited colleagues to send me a quick note of thanks for someone they wanted to recognise. I gathered those messages and shared them with the wider team, always naming both the giver and the receiver.
It took very little time, cost nothing, and made a huge impact:
- People felt genuinely and visibly valued by their peers
- Recognition became transparent, not hidden or political. Everyone could see who was being appreciated and why
- Colleagues bounced into the weekend with a spring in their step
- As a leader, I gained a real-time view of who was making a difference, often in ways that might otherwise go unnoticed
And there was an unexpected bonus. I always copied in my own boss, and soon other senior leaders asked to be copied in too. It meant recognition travelled upwards, not just sideways. Leaders at every level could see the positive impact individuals were having, which only reinforced the value they added.
A small step, a big difference. That Friday habit created momentum. Colleagues looked forward to it, many made it part of their end-of-week routine to submit thanks.
It proved that employee recognition doesn’t have to be elaborate or costly. Sometimes all it takes is 15 minutes a week and the courage to share appreciation openly.
And the payoff? A team culture where gratitude was normal, not occasional, and where senior leaders had a direct line of sight into the everyday brilliance of their teams.
From praise to performance – how Axiom can help you deliver excellence
Of course, it costs nothing to say ‘thank you’, but it can be costly and counterproductive if you, despite your best endeavours, get it wrong.
That’s where Axiom comes in.
We have the skills, experience, and proven methodologies to help you deliver success.
- Equipping and inspiring leaders and line managers to deliver recognition well
- Linking recognition to your business goals, objectives, and business cycles
- Crafting and communicating clear objectives and criteria
- Partnering to develop the right recognition techniques for your organisation
- Co-creating the metrics to measure success
- Communicating the programme and embedding results
- Collecting feedback and refining for the future, so next year is even better
These seven steps closely mirror our approach to doing business, which I talk about with my colleagues in this video.
At Axiom, we’ve seen firsthand how employee recognition creates thriving cultures and better business results.
We can be with you every step of the way. Whether you need a full programme design, or targeted support, we can help you turn praise into performance.
If you’d like to explore how we can help, simply get in touch to arrange a no-obligations discovery call, or book a workshop.
Best practice in employee recognition needn’t cost the earth – but it will make a world of difference to your colleagues, your company, and your customers.
