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01 May 2024
by Stuart Cheesman

Top tips on convincing the C-Suite that recognition needs specialist software

Those that hold an organisation’s purse strings can often be hard to convince that an integrated digital recognition system is more than just a nicety

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Introducing a recognition programme can sometimes be met with scepticism and barriers, particularly from the C-Suite who may not be keen to put money aside for this latest ‘HR initiative’.

To persuade the board that recognition is not only key, but needs specialist software means explaining ‘why’ before moving onto ‘how’.

Building your case

The C-Suite must be convinced about the power of recognition through compelling evidence and research that links to key business metrics such as employee retention, productivity and revenue.

Explaining to the CEO and CFO that recognition will make “employees feel so much happier” will never be as effective as telling them that consistent recognition can add 3.5 years to an employee’s tenure and will increase profit and shareholder return.

So, provide facts and case study examples of how recognition leads to a thriving culture that performs better such as:

  • Employees who feel appreciated are 5x more likely to stay at their organisation.
  • Companies with recognition programmes see 31% lower turnover than companies without.
  • 79% of people who quit cite “lack of appreciation” as their reason for leaving.
  • A 1,181% increased odds of employees performing great work when the organisation has highly integrated recognition.
  • Organisations that practice recognition effectively are 12x more likely to have strong business results including increases in shareholder return.

Asking for the right investment

Having a clear understanding about the potential return of rolling-out a robust and integrated recognition programme will convince the C-Suite that it needs solid investment.

Research suggests that companies investing in employee recognition should expect to budget between £160 to £280 per employee per year for maximum impact. Any more or any less creates diminishing returns.

This investment should be used to create a recognition experience that is frequent, personal, meaningful and part of everyday work.

It needs to be given and received by everyone – top-down, bottom-up and peer-to-peer - and deskless workers mustn’t be forgotten.

And to achieve this, it needs to be integrated into the company’s culture, total rewards benefits package, and the everyday employee experience.

The need for specialist recognition software

A culture of integrated recognition can’t be done without the right supporting platform and this doesn’t mean using or adapting the company’s existing HR/communications platform.

A specialist recognition platform is crucial for success as it will provide a comprehensive means to manage and track recognition across the organisation.

For example, it will enable recognition giving in the flow of work, making it frictionless, rather than having to log-out of one application and log into another.

The best recognition solutions are also mobile-enabled, allowing recognition ‘on the go’, and give prompts to the recognition giver to ensures it’s clear why the recipient is being appreciation and which praiseworthy values and behaviours they have demonstrated.

Comprehensive recognition data from the platform will ensure fairness and equality in the giving of appreciation – are some employees getting the lion’s share of recognition and if so, why? Is favouritism at play? The data can also provide insights into culture impact and flight risk.

Linking recognition to reward is a further consideration, so that managers and peers can provide appreciation alongside a reward, such as points that the recipient can redeem from an online catalogue.

Employees should also have the ability to send an ‘eCard’ quickly and easily for added impact.

Plus, the best recognition systems will help to automate the celebration of career anniversaries, ensuring that no employee’s anniversary passes uncelebrated.

Linking recognition to ROI

Every recognition programme needs the right platform to ensure success rather than trying to use a generic or adapted system that simply isn’t up to the task.

By using a tailored recognition platform that comes with a range of built-in tools for recognising, rewarding, measuring and managing organisation-wide appreciation, companies of any size are better able to understand how their recognition strategy translates into impact and ROI.

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