What will recognition and rewards look like in 2021?

The pandemic has created a shift in the world of recognition and rewards. Physical office-based rewards and transient perks, such as chill-out rooms and massage chairs, have been replaced with virtual and meaningful experiences. Wellbeing and creating connections are taking priority, with 2021 being a year of both technological transformation and a major shift towards modern leadership. So here’s what rewards and recognition is looking like in 2021.

Wellbeing will take priority

With much of the UK and Europe still working from home, colleagues remain physically distant. This is creating stress and anxiety for different reasons – people living alone are vulnerable to loneliness, and working parents home schooling their children are struggling to juggle all their commitments. Then there are the people who are having to go into work because they can’t work from home. The impact on mental health is huge, requiring modern leadership that puts people’s needs and wellbeing first, and HR and rewards professionals who provide suitable support and advice.

Those organisations that used to provide transient perks are now recognising that more meaningful support is needed, with 2021 being about providing genuine and tailored rewards. This might include home office equipment and furniture, a mental health support line and new flexible working arrangements.

Financial wellbeing is just as important, with many people finding themselves in difficult situations due to the pandemic fallout. Offering financial education, support and advice will be well-received by many employees, together with finance schemes such as salary sacrifice loans.

IT connections are key

Connecting people digitally is now more important than ever before, and recognition and rewards must keep pace with the rapid change by using social communication tools and recognition software. The right IT infrastructure will ensure people can keep in touch, be appreciated from anywhere, and give, receive and view their rewards 24/7. Whether the employee wants to provide a piece of recognition, view their pension plan or request a call from a mental health first aider, this year will be the year in which reward professionals take a ‘digital first’ approach, ensuring all online interactions with staff are quick and easy.

Recognition moments will be taken online

The pandemic has highlighted the vital role recognition plays in keeping people connected to purpose, accomplishment and each other. In fact, a person who feels valued and appreciated is less likely to experience burnout and is more likely to feel engaged and motivated to contribute to the success of the business. A modern leadership approach which values appreciation, together with the right recognition software, will make virtual recognition giving simple. For instance, peer-to-peer recognition can happen with a touch of a button, such as the sending of a thank you e-card.

Recognition moments and career celebrations have to be taken online and celebrated virtually, with colleagues encouraged to join in remotely. Posting out tokens of appreciation to peoples’ homes (when homeworking), such as plaques and personalised gifts, will also enhance the employee experience, making it more personal and impactful.

The year of connection

Despite still being physically apart, 2021 will in every way be the year of connection, both digitally and emotionally. HR and rewards professionals will dismiss adhoc perks and will instead focus on creating meaningful experiences and providing tailored support to meet individuals’ needs.

The pandemic has reset what’s important and employees are craving understanding, flexibility, financial help, emotional support, appreciation and friendship.

The author is Robert Ordever, MD of workplace culture expert, O.C. Tanner Europe.

This article is provided by O.C. Tanner Europe.