How to Create an Employee Recognition Program Policy

Policies need to be in writing and communicated to all employees.

An employee recognition program may communicate to the employees that they are valued and that their work and good deeds do not go unnoticed. In order to assure fairness, consistency and legality, some human resources departments may develop written policies regarding the recognition program. As long as policies are established and communicated to employees, the program should be a positive experience for all.

Instructions

1. Develop a list of employee recognition ideas and the costs involved. Some ideas for employee recognition include Employee of the Month (based on company-specific requirements, such as helping co-workers or working through a weekend), safety successes (where an employee has no safety issues for a certain length of time), perfect attendance (for six or 12 months), outstanding customer service (customers have commented on employee's ability to resolve issues) or retirement (recognizing an employee for years of service).

2. Determine what the recognition rewards will be. Some are monetary (cash, bonus check, catalog gifts paid by the company). Examples of non-monetary gifts are meals, gift certificates, plaques, trophies, shirts, jackets, briefcase, small electronics or event tickets. In determining the recognition rewards, the company may also inform the employee of any tax (federal or state tax) liabilities involved.

3. Define the parameters (who, for what and when) of the recognition program. To ensure fairness and equity, all employees must be eligible. The behavior recognized needs to be specific (exact steps explained) and achievable (reasonable goals set). For example, a sales goal that is higher than can possibly be reached may be more harmful than positive. The rules and guidelines must be reasonable and the program encouraged. An example of a vague rule would read, "Sales representatives must be above normal quota." A more specific rule would read, "Sales representatives must exceed their $1000 per week quota by 15 percent."

4. Write the policy at a language level for all employees to understand and embrace. For example, a simple statement would be "All employees who have been with the company for one year are eligible for the recognition program." Some policies begin with the purpose. In the employee recognition program, the purpose of the program is to acknowledge employees' contributions to the company.

5. Meet with supervisors and managers to review the policy and to establish the necessary rules for setting goals and consistently managing them across the company. For example, all goals need to be set at the same challenging levels. Supervisors and managers from each department may be able to specify what constitutes above average performance. A sales representative who sells above his goal each week cannot be recognized similarly to a quality control employee who regularly has one or two errors per week, but sets a goal of zero errors for two consecutive weeks. The sales representative may need to establish goals above the normal weekly sales to be equally challenged.

Tips & Warnings

• Do communicate the recognition program and encourage participation.

• Don't allow recognition programs to become a given.

• Don't single out any one employee for recognition based on favoritism.

References

• Virginia DHRM: Employee Recognition Program Handbook