Karina Bilbao
Talent & Transformation Consultant, Expert in People Development
In today’s fast-paced business world, where talent loyalty has become a crucial challenge, organizations are facing the urgent need to foster a positive work culture that drives long-term engagement and ensures collective success.
The 2023 Gallup report, State of the Global Workplace, finds that in Spain, 75% of employees are not engaged in their work, indicating that only about 10% claim to be engaged, compared to the global average of 23% reported by the same entity. In fact, Gallup estimates that low employee engagement costs the global economy $8.8 trillion, or 9% of the world’s GDP.
In this context, recognition emerges as a powerful tool capable of completely transforming the workplace dynamics and increasing employee satisfaction, thus driving sustainable growth for a company.
In this article, we will delve into the immense significance of recognition, highlighting impactful data, various success stories in the workplace, and key initiatives to promote a culture of recognition.
The numbers speak for themselves
Despite a clear demand from workers, 54% do not feel valued by their organization, according to a McKinsey study. This problem lies in companies’ lack of understanding of what their employees truly value.
Several studies claim that organizations often resort to monetary solutions, such as increasing compensation or benefits, instead of addressing underlying issues. This approach can lead to an unsustainable reliance on traditional measures that offer few significant changes in retention rates.
However, there is an even more effective approach: improving the employee experience, known as Employee Experience or EX. Research has shown that by strengthening the employee experience, engagement with the organization is promoted. Furthermore, a Harvard Business Review study found that companies with a high employee experience have 2.3 times higher productivity than those with a low experience, demonstrating its impact on job performance and productivity. This is where recognition can play a fundamental role.
Recognition programs are highly effective, as indicated by data collected by the Society for Human Resource Management (SHRM). According to one of their studies, 68% of HR experts affirm that recognition has a positive impact on talent retention. This statistic underscores the importance of acknowledging employees’ efforts and achievements as an effective way to keep professionals engaged and satisfied in their roles.
Additionally, these programs not only contribute to talent retention but also enhance the company’s reputation and its ability to attract new talent. In fact, the same SHRM study reveals that 56% of HR professionals consider recognition programs to benefit both talent attraction and employer branding, highlighting their crucial role in building a strong and appealing employer brand in the labour market.
Next, let’s look at examples of companies that have successfully implemented such programs.
Stories of companies recognizing talent
Well-designed recognition programs, those that incorporate it as a fundamental pillar of corporate culture, have the potential to greatly transform an organization’s dynamics. To illustrate the transformative impact of recognition on workplace culture, we can examine examples from real-world organizations.
Firstly, we can mention Salesforce with its Salesforce Ohana Award program, which recognizes employees who embody the company’s values such as collaboration, innovation, and positive community impact.
Secondly, we can highlight 3M with its Golden Step Award program, which recognizes employees who have significantly contributed to improving workplace safety, such as implementing new safety measures and identifying and correcting potential risks.
Third and finally, it is worth mentioning Airbnb with its Superheroes initiative, which encourages employees to take on additional responsibilities outside of their usual roles and share their learnings with other employees, while being recognized for the extra responsibility.
Successful recognition initiatives for achieving collective success
In this scenario, the creation of an effective culture of recognition becomes a fundamental pillar for the success and sustainability of organizations. Below are some key initiatives for cultivating a culture of recognition in companies:
1. People-Centric Culture
According to various studies, the foundation of a culture of recognition lies in valuing people as the organization’s most important asset. Adopting a people-centric culture involves recognizing and appreciating the contribution of each individual to the growth and success of the company. Similarly, transparent and clear communication about what is expected from team members’ roles is essential. People will have a positive experience and reach their highest level of engagement if they truly understand how their work contributes to what the company is and how their tasks contribute to achieving the set goals.
It’s important to understand that employee engagement goes beyond their happiness at work. Focusing solely on measuring satisfaction can lead to neglecting this deeper commitment. Often, business metrics focus on satisfaction, but genuine engagement involves employees being invested in their tasks. This means they understand their responsibilities, have the necessary resources, and are supported by their superiors and peers.
Additionally, they grasp the importance of their contribution. According to Gallup, organizations with highly engaged and involved workforces outperform their peers by 147% in earnings per share.
2. Leadership models
Promoting leadership models that foster collaboration and professional development is key to building a culture of recognition. One particularly relevant leadership philosophy is Servant Leadership, which, although originated over 50 years ago through Robert K. Greenleaf, currently has a significant impact. In Servant Leadership, the leader’s role is centred around creating an environment conducive to enhancing the growth and development of team members, emphasizing collective success over individual competition.
According to recent statistics from LinkedIn, 94% of workers would be more interested in staying with a company if it invested in their professional development. This figure reveals a fundamental truth: employees value growth and the opportunity to develop their skills. Additionally, 87% of millennials, an increasingly representative generation in the workplace, consider professional development and growth crucial aspects of their work.
These statistics highlight the importance of providing an environment that fosters individual and professional progress for employees. By cultivating leaders who prioritize the development of their teams, an environment is established where trust and mutual support drive team performance and cohesion within the company.
3. Collaborative environments
Flexible and decentralized organizational structures based on a culture that promotes autonomy and freedom allow employees to feel empowered, giving them greater control over their work and making them feel involved in decision-making. By removing hierarchical barriers and fostering horizontal collaboration, an environment is created where recognition flows naturally among team members.
At the same time, by providing a space where diversity of opinions and approaches are valued, it creates an environment conducive to people expressing their ideas and contributing creativity, driving learning and innovation. Fostering learning teams is essential in today’s business context, where adaptability and innovation are crucial to responding to market changes. These teams have the ability to tackle new challenges with agility and collaboratively, leveraging collective knowledge and constantly seeking improvement opportunities, thus ensuring long-term success.
4. Creation of “Psychological Safety” spaces
To ensure authentic and effective recognition, it’s essential to cultivate an environment where employees feel safe to express their opinions and be themselves. Psychological safety in the workplace facilitates collaboration and openness, which in turn promotes genuine and transparent recognition of each team member’s achievements and contributions.
In this context, the implementation of an employee listening system becomes increasingly crucial. Google has been a leader in this area with its Blue Dot initiative, a network of employees available to listen to their colleagues. Unlike therapy, the purpose of Blue Dot is to provide a safe space to discuss mental health without offering direct solutions. Participants receive self-guided training on how to listen effectively and how to offer additional support if needed. Additionally, Listeners learn meaningful guidelines for active listening that they can apply in various situations.
Google employees have the option to schedule appointments with a Blue Dot member in any region that suits them. As one participant describes, “having that first conversation was really inspiring and energizing”. The mission of Blue Dot, founded by Rachael Bleakley and Jack Kaden, aims to destigmatize conversations about mental health by creating safe spaces for employees to express their needs. This approach demonstrates how psychological safety can be fostered through empathy and willingness to listen in the workplace, generating positive experiences for employees.
5. Comprehensive wellness programs
In an innovative approach to employee recognition and improving the employee experience, cutting-edge organizations are opting for strategies that go beyond the conventional. This involves providing positive experiences to employees through the implementation of measures such as support for diversity and inclusion, mental health services, paid time off, wellness programs, and childcare services, or strategies that promote work-life balance. These initiatives not only reflect the company’s commitment to the physical and mental well-being of its team but also constitute an alternative and effective form of recognition. By prioritizing the comprehensive well-being of employees, organizations not only strengthen a culture of appreciation and mutual care but also significantly enhance the employee experience and foster long-term loyalty and commitment.
6. Assertive communication and continuous feedback
Regular and constructive feedback is essential for the growth and development of employees. By establishing structures that facilitate the exchange of feedback among different members of the company, a culture of recognition is promoted where learning and continuous improvement are valued. Additionally, actively listening to employees and understanding their needs and concerns is essential for creating an environment where they feel valued and motivated.
7. Integration of innovative technologies
Technology, such as artificial intelligence (AI), can play a crucial role in creating a culture of recognition. The implementation of AI-based systems can facilitate the customization of recognition programs, identifying areas for improvement and offering relevant training and development suggestions for each employee. Additionally, technological tools can automate routine processes, freeing up time and resources to focus on motivating tasks that foster talent development.
In summary, fostering a culture of recognition in a company involves going beyond simply implementing formal awards and recognition programs. It’s about adopting a comprehensive approach that values and promotes employees’ personal and professional development, fostering collaboration, autonomy, and transparency throughout the organization. Additionally, it drives motivation, well-being, and productivity among employees, turning them into true brand ambassadors. Furthermore, it ensures the long-term sustainability and competitiveness of the company in today’s labour market.
In any context and from any perspective, recognition emerges as an impossible force to ignore within the fabric of an organization and has a circular and reciprocal journey. By appreciating and valuing others, one also comes to know oneself better, understanding their environment and their role in the organization. Similarly, by being recognized, one sees oneself reflected in the company’s mirror, strengthening a deeper and more meaningful connection with others and with the shared mission. By prioritizing human experiences over processes and adopting humble and collaborative leadership models, organizations can cultivate this continuous cycle of recognition, encompassing each individual within the organization, promoting collective growth and success.
To delve further into other essentials in the employee’s daily routine besides recognition, click here.
