Recognition is the Secret Weapon to Building a Thriving Workplace

What is the hallmark of a truly successful workplace?

In today’s day and age, it’s a feeling that connects an individual in a unique yet powerful way to their organization. It’s a feeling of belonging and purpose. A feeling of being valued for the unique contributions one brings to the table. It's the result of belonging to a living, kicking entity and not merely lifeless, corporate machinery.

Social recognition is the practice of people recognizing and rewarding each other’s efforts, using positive feedback to unlock human potential… It’s the foundation for creating a more human workplace because it reinforces shared purpose and gives individual meaning through gratitude.
– Eric Mosely - CEO Workhuman

An employee spends a major part of the day at their job. Therefore, the culture and environment of the workplace significantly influence an individual. Hence, with Gen Z stepping foot into the modern-day workforce, it’s no surprise that toxic workplaces result in headlines screaming about ‘quiet quitting’ and ‘moonlighting’.

But what if achieving the dream of an alive, inspiring workplace was within reach? This is where the power of recognition comes into play. Let’s delve deeper!

Traditional recognition programs fail to tap into the human desire for connection and appreciation. The recognition they offer is periodic and not frequent in nature, so there is often a time gap between receiving the recognition and performing the desirable behavior.

Also, recognition is limited to a few segments of the workforce and does not include everyone. Remember, recognition is not personalized, it is based on a one-size-fits-all approach with no regard for individual preferences. Hence, it may be devoid of any real meaning for the recipient and might feel transactional in nature.

Behavioral science, however, offers a powerful truth: thoughtfully designed recognition can be a game-changer. It can not only make employees feel valued but also drive positive behavioral changes that ultimately push a business forward.

This is where Vantage Circle comes in. We believe recognition is the key to unlocking a transformative workplace culture, one where employees are intrinsically motivated, feel connected, and are empowered to excel. However, our approach is not based on the one-size-fits-all methodology.

We believe in a workplace where recognition is not just an obligatory HR practice that comes into action periodically or only once in a year. We aspire to create a workplace where recognition is frequent, thoughtfully designed, and holds personal value for the recipient.

Where employees receive kudos from peers for a job well done, not just from managers. A system that acknowledges not just achievements but also ongoing efforts and contributions to company values. This is the future of R&R programs, and it's a future built on the science behind recognition.

The Science Behind Recognition

Our ongoing research in recognition reveals that conventional approaches simply aren't enough. Employees crave recognition that feels genuine and personal. This has been further validated by the introduction of Vantage Circle’s proprietary tool—the AIRe framework, which enabled businesses to adopt a data-driven approach to R&R program design and execution.

The framework enables HR leaders to quantitatively measure the effectiveness of their R&R programs along various objectives like employee engagement, performance, and retention.

Our findings suggest that employees respond better to programs built on the AIRe framework. It focuses on four fundamental themes: Appreciation, Incentivization, Reinforcement, and eMotional Connect.

1. Appreciation acknowledges a person's inherent worth, not just their performance. It's a simple "thank you" for a job well done, a public shout-out for ongoing dedication.

2. Incentivization goes beyond money, it incites action by offering social validation and exclusivity.

3. Reinforcement is about highlighting desired behaviors that drive organizational impact. It's acknowledging not just the "what" but also the "why."

4. Finally, eMotional Connect is about creating a strong feeling of association with recognition. It's about making it feel special, meaningful, and truly connected to the individual.

This approach personalizes recognition. Rewards are no longer generic. They cater to the unique preferences and career stages of employees. Recognition is frequent and happens throughout the year, not just annually. And the timing is crucial – recognition delivered promptly feels more sincere and impactful.

A Deep Dive into the Data

The report offers a comprehensive analysis, extending its coverage to 250 companies across 10 industries. This marks the ‘third year’ of publication for Vantage Circle’s structured research on Global R&R programs, following our inaugural Global R&R report in 2022 and subsequent reports for India, the US, and the UK in 2023.

Traditionally, R&R programs aimed to boost employee engagement and performance in the hopes of inspiring loyalty. However, our study shows that focusing on what employees actually do, i.e. employee behavior, has a much stronger impact.

As per this year’s R&R Report for India, a whopping 67% of companies that emphasized reinforcing desired behaviors reported high program effectiveness. On the other hand, less than half (less than 50%) of companies focused on loyalty and retention achieved similar results.

This means that while recognition directly impacts behavioral change, companies need to take a multi-pronged approach when it comes to retention strategies.

The secret to a well-designed R&R program lies in aligning the program with the behaviors that drive the organization's success. There is currently a gap between what leaders value and what gets recognized. In order to bridge this gap, organizations need to translate their core values into specific, actionable behaviors that employees can exhibit every day.

Secondly, they need to equip their leaders to understand how those core values translate into these everyday actions. Finally, they need to design their R&R program to recognize these targeted behaviors, not just the final results.

To boost the emotional value of recognition, they can consider offering a points system instead of cash awards. This allows employees to choose rewards that are meaningful to them, making the recognition more personal and impactful.

However, while most companies have decent program designs, execution is crucial. To ensure effectiveness, tracking and assessing the program is necessary. This means measuring metrics beyond just recognition numbers and budget utilization. Programs need to be evaluated for their frequency, alignment with desired behaviors, and delivery methods. Is recognition happening often enough? Are the right things being recognized?

By focusing on behavioral reinforcement, comprehensive evaluation, and emotional value, companies can create R&R programs that drive a more engaged and motivated workforce.

Case Study

Recognition in Action: The Wipro Case Study

A compelling case study demonstrating the success of this approach is Wipro’s innovative recognition program.

In the competitive business landscape, engaging a massive and globally distributed workforce is a challenge. With over 230,000 employees across 66 countries, Wipro partnered with Vantage Circle to launch the ‘Winners’ Circle’, an enhanced Global Peer-to-peer Recognition and Rewards Program.

In addition to revamping the program based on its core values, they focused on two key levers: Employee Experience and Analytics. The Winners’ Circle is designed to recognize high performers, acknowledge employee efforts, and sustain motivation through timely and frequent recognition. Such instant, real-time capability drastically enhances the theme of appreciation, impacting both the frequency and coverage of the R&R program.

The R&R framework of the Winners’ Circle Program is built on four main pillars.

Unit Awards recognize significant impacts on business objectives, presented in collective forums such as Town Halls and All Hands Meetings. Divided into monetary and non-monetary categories, SPOT Awards reward behaviors aligned with Wipro’s cultural values.

Long Service Awards are given to celebrate employees who are reaching service milestones with Wipro (5, 10, 15 years, etc.), thereby making their service anniversaries memorable.

The Winners’ Circle platform seamlessly scales to accommodate Wipro’s vast employee base without compromising speed or performance, regardless of location. This is instrumental in reinforcing desirable employee behaviors and driving business success.

The results of Wipro's program are impressive:

• There has been a 97.5% increase in non-monetary awards in the form of badges and appreciation tokens from 2021 to 2023, indicating a strong culture of peer-to-peer recognition.

• Nearly 30,000 Long Service Awards (LSAs) have been given since 2021, with a 9.8 times increase in engagement (wishes and praises) on these LSA posts in the last two years.

• On average, over 768 awards are given per day, with a total of 553,490+ awards given over two years.

• In the last fiscal year, a Wipro employee was recognized every 1.2 minutes i.e. over 57% of Wipro’s associates received recognition in 2023.

These numbers reflect the extensive reach and effectiveness of the global R&R program. They demonstrate the strong performance of the recognition program, especially considering the organization’s size. Additionally, the framework fundamentally enhances program effectiveness in alignment with Vantage Circle’s AIRe framework.

Collaborating with Vantage Circle has thus demonstrated the power of a well-structured R&R program in enhancing employee morale and productivity. Wipro, thus, continues to explore new ways to leverage Vantage Circle’s platform to enhance its R&R program.

Building a Culture of Recognition: The Road Ahead

Wipro's journey is a testament to the ongoing pursuit of recognition excellence. Their efforts to seamlessly integrate R&R into existing workflows and leverage data science to measure program effectiveness are paving the way for a future where recognition isn't just a program, it's a core value.

The road ahead is clear: recognition is not a luxury, it's a necessity. By adopting a behavioral science-driven approach, organizations can create R&R programs that are impactful, aligned with strategic goals, and fuel a thriving work environment.

Vantage Circle’s approach to recognition, grounded in behavioral science, has proven to be a powerful catalyst for lasting behavioral change and enhancing organizational culture. By adopting the AIRe framework and implementing comprehensive R&R programs like Wipro's, organizations can embrace the power of recognition and create a work environment that truly values its employees, a place where everyone thrives.

This article is written by Avnika Gupta. She works as an independent consultant, working on a range of strategic and learning-oriented content needs with the COE at Vantage Circle. She is also an internationally published Author & Speaker, published widely by Thought Catalog, Terribly Tiny Tales, and Berlin ArtParasites. As a Spoken Word Poet, she has 200+ performances to her credit and has been nominated in the list of ‘50 Fit To Fight Women’ by Reebok India. For any related queries, contact editor@vantagecircle.com.