Christmas reward and recognition: time for a makeover

With stories about Black Friday making their regular annual appearances in the press and seasonal lights starting to light up the UK’s shopping streets, the countdown to Christmas is well and truly upon us.

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For many employers, Christmas parties and some sort of reward remain a mainstay of the end of year celebrations. But in 2015, to what extent is this type of recognition relevant any more?

With a more diverse workforce and a changing relationship between employer and employee you could certainly argue that Christmas recognition is an idea which is out of time.

The reality, according to the 1,000 UK employees we surveyed in our annual research into the issue, couldn’t be further from the truth (you can read the report here).

Recognition worth giving

Yes, it is the case that around two thirds of employees don’t get a reward – and here we have to include people like teachers or other public sector workers who may not be able to receive one directly from their employer – but the vast majority of employees (70%) say that when they receive a reward it makes them feel more positively about their employer and the private sector many still do receive something.

Call for a fresh approach

In fact, the biggest call for change about how employers give a token recognition for employee’s work through the year rather than whether it is given at all. What is clear is that the days of the Christmas hamper, crate of wine or box of chocolates are dead. Employees don’t value this type of reward as recognition for their hard work. If an employer is investing in reward, what they really want is choice around how that is spent with 71% saying they would like cash or vouchers.

Making it memorable

Faced with this evidence, the easiest thing for an employer to do is to add a cash sum to the December pay packet.

The trouble with this is, compared to a monthly wage, the sum can seem small or insignificant, getting lost in the bank account once it is paid. The other issue which is critical to remember is that end of year recognition is something which should meet the objective of making an employee feel valued and that the employer recognises their efforts.

Getting it right

This is where vouchers – whether these are digital or paper vouchers – are a powerful tool which align the interests of employee and employer. They give the choice the employee wants, they are out of the ordinary (and therefore memorable) and the act of giving them provides the all important opportunity for recognition and a word of thanks to the employee. What’s more, employees say the sum involved doesn’t have to be huge to make a difference: £20-50 will do the job for most, according to our research.

Say thanks

With 40% of employers saying better communication would improve the impact of end of year reward and one in three (31%) saying they never give a personal thanks when it is given, there is a clear opportunity for employers to do more to ensure the money invested delivers the outcomes employees want. The key action employers must take is to give themselves time to plan any Christmas recognition early, ensuring that the job isn’t just one of getting the reward into employees' hands but doing it with a thank you.

Andy Philpott is sales and marketing director at Edenred a provider of employee benefits and recognition. You can follow him at @andy_philpott or read more research and insight.