What are the Top 3 Trends Shaping the Future of Employee Recognition?

Successful employee recognition programs achieve targets in improving employee engagement, which, in turn, improves employee retention, productivity, and the overall growth of the business.

When reflecting on the key strategies for capitalizing fully on employee recognition investments, there are three key ideas to remember:

Poor data quality in combination with managing an increasingly complex and uncertain workforce landscape makes it harder for modern HR leaders to make accurate and timely business decisions. Strengthening workforce data by integrating it with data in relevant systems helps mitigate the challenges posed by lack of data-driven workforce management decisions.

In the context of employee recognition programs, using a dedicated R&R platform provides HR leaders with a centralized hub, allowing them to monitor and gauge employee accomplishments, skills, and motivators across all business departments and locations. When integrated with other systems such as performance tracking, time and attendance management, and the core HR system, they can provide a full view of each employee and help HR leaders confidently make workforce management decisions.

R&R programs that incorporate clear communication of the company's expectations of employees and offer rewards for meeting those expectations are far more likely to be successful than those programs that do not provide insight into a firm's expectations of its employees or how those expectations are measured. Latest research shows that companies with successful recognition programs are indeed 22% more likely to have close alignment between employee activities and company objectives.

Companies that have yet to build a formalized communication program to educate employees on the rewards and expectations related to their activities risk missing out on potential gains from their recognition programs. The benefits of an R&R platform are truly amplified when employees understand the value of their participation and how their actions are helping to move the company forward. Clear communication and visibility of employees' contributions to organizational goals goes beyond improving employee satisfaction. It helps focus the activities of the broader workforce to effectively implement strategic programs across all business departments. In other words, it helps heighten the sense of teamwork, improve productivity, encourage learning and development, and promote the growth of the organization in tandem with individual employee growth.

Using machine learning and generative AI enables firms to rapidly analyze vast volumes of data available across a variety of systems to uncover hidden correlations and trends. For example, firms can uncover if employees and organizations have certain soft skills and hard skills required for the next projects or organization transformations to be successful.

Also employees can learn better about their own strengths and areas of improvement as they participate in the R&R system and unbiased feedback is provided. Using AI can also help emphasize the emotional and social perspective to the “moments that matter” of employees that happen during their career.

Bottom line, HR leaders who are looking to maximize the ROI of their planned employee recognition programs should incorporate the three building blocks highlighted in this section within their activities. Doing so will maximize the likelihood that their employees will perform well, while also building an environment that closes skills gaps, reduces unwanted employee turnover, decreases costs, and ultimately creates happier customers.

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