Companies have all different kinds of ways to recognize hardworking employees, according to a new survey by WorldatWork, an organization of human resource professionals.

A survey of more than 5,000 of the group’s members finds nearly 90 percent of employers offer some type of formal recognition program, about the same percentage as reported during last year’s study.

Companies which lack a recognition program give different reasons for why they haven’t created one. The most common reasons are “lack of support from senior management” and cost.

Among those that do have such programs, most managers believe recognizing an employee with some type of reward is a valuable investment in the workforce that boosts morale among employees.

Eighty-five percent of employers offer formal recognition for employees who have served for a particular amount of time, while 77 percent have programs set up to reward high-quality work. Around half of companies say they also use such programs to encourage specific behavior.

Most organizations formally recognize employees for a number of different reasons. Just under two-thirds report having between three and six programs, some of which may be for different types of workers or which may reward different accomplishments, such as lengthy tenure or above-average work.

The great majority (72 percent) of organizations also have a budget set aside for employee recognition program, whether that’s company-wide or allocated to a specific department.

Just over half of employers have specific, written guidelines to determine who is deserving of recognition. Others may do so on a more ad hoc basis. And yet, a larger percentage -- 87 percent -- of HR professionals say they have received formal training on how to dole out rewards.

In a similar review of employee recognition programs last year, the Society for Human Resource Management noted formal recognition typically ranges from as little as a verbal “thank you” or a mention in the company newsletter to one-time cash awards or additional vacation days.

There are, however, pitfalls to employee recognition efforts, SHRM warned:

“A recognition system will falter if employees feel that their work is trivialized or even insulted by inconsequential incentives or insincere gestures of appreciation. Awards should be consistent with the employee's achievement and meaningful to the person receiving it. An employee who completes a two-year project should be rewarded in a more substantial manner than an employee who does a quick favor for a manager.”

SHRM also emphasized the importance of adding a personal touch to the recognition, as opposed to a standard form letter from the company president.

Instant Insights /

Vast majority of employers have employee recognition programs

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