How Leaders Can Use Recognition to Build High-performing Teams
The key to organizational success often lies in the strength and cohesion of its teams. While many factors contribute to team performance, one powerful tool that leaders often overlook is recognition.
Far more than just a feel-good gesture, strategic and sincere recognition can be a catalyst for transforming good teams into great ones, and great teams into exceptional performers.
Employee recognition, when wielded effectively, goes beyond simple praise. It's a multifaceted approach that acknowledges achievements, reinforces desired behaviors, and aligns individual efforts with organizational goals.
From understanding the psychology behind effective recognition to implementing practical strategies that resonate with diverse team members, we'll delve into the art and science of using appreciation as a leadership tool. So, let’s get started!
Psychological Impact of Recognition on Employee Morale
According to the report on R&R trends by AON, SHRM, and Vantage Circle, 3 in 4 companies are looking to leverage R&R programmes to drive behavioral change.
Recognition activates the brain's reward circuit, triggering dopamine release. It is the feeling that you get when you win something, often referred to as the "feel-good" neurotransmitter. It evokes a sense of pleasure and satisfaction. But the impact of recognition goes beyond this immediate neurochemical response.
Consider the case of a customer service representative at a large retail chain. Despite facing angry customers daily, she consistently maintained high performance and a positive attitude. The secret? Her manager's consistent recognition of her ability to handle difficult situations with grace. The act strategically links recognition to desired behaviors i,e maintaining a positive attitude even in challenging situations.
This approach takes the principles of operant conditioning, where positive outcomes (in this case, recognition) increase the likelihood of the behavior being repeated. Furthermore, it strengthens the psychological resilience, allowing her to bounce back from stressful interactions more easily.
The example also highlights the Anxiety-Buffer Hypothesis which leverages the role of self-esteem in shaping workplace dynamics.
By boosting employees' self-esteem through recognition, you create a reservoir of positive feelings or self-worth. And, when inevitable stress or burnout arises, your team can tap into this reserve for added resilience. This approach fosters a healthier workforce by ensuring employees feel secure and valued.
Recommended Resource: Psychology of Employee Recognition: Understanding The Fundamentals in 2024
Recognition Strategies to Build High Performing Teams
1. Behavioral Recognition
Behavioral recognition is more than just acknowledging good work. It’s more focused on targeting underlying values that keep an organization running. Instead of focusing solely on recognizing and incentivizing outcomes, recognition should highlight the actions that lead to those outcomes. Those specific behaviors that are tied to your company's core values.
For example, let’s say your organizations values innovation. Instead of just recognizing a successful product launch, you’d also want to celebrate the team’s creative thinking or problem-solving method that led to the outcome. This way you’re essentially shaping the team’s behavior by recognizing these values in action and not just the end results.
Giving recognition publicly in front of leaders and peers for aligning with company’s core values also elevates the moment, making it truly memorable. It doesn’t just motivate them but also sets a standard for the entire team, increasing the likelihood of the behavior being repeated.
2. Frequent and Timely Recognition
Providing frequent and timely recognition is significantly more effective than reserving it for annual reviews or special events. It’s similar to nurturing a plant- sporadic, heavy watering once a month won't help it thrive, but consistent watering in smaller doses will. And that’s what makes the difference!
Similarly, if you make recognition a regular part of your daily workflow, you will be successful in creating a continuous feedback loop, where the efforts of employees are recognized right away, rather than waiting to acknowledge them at the end of the year. This immediate recognition leads to higher performance, which in turn leads to more recognition.
3. Personalized Recognition
Personalized Messages
Personalized messages can be incredibly valuable to use, because they demonstrate sincerity. Investing time to write out the message shows that you value the efforts made by each team member.
When crafting personalized messages, you should:
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Be specific about the achievement or behavior being recognized
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Highlight the impact of the employee's work on team or organizational goals
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If possible, tie the recognition to the employee's known career aspirations or personal values
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Unless the recipient prefers to avoid the limelight, recognize publicly as it enhances the social value of the recognition
Personalized Rewards
The concept of redeemable points has gained significant traction in recent years. It made awards more meaningful to employees by allowing them to exercise personal choice, while avoiding the transactional nature of cash awards.
Employees can save points for larger rewards or redeem them more frequently, giving them control over their recognition experience. A well-designed points catalog of rewards that employees can "purchase" with their points is crucial for the success of this system.
On the other hand, experiential awards take emotional connect to another level by offering unique and memorable opportunities. Traditionally, progressive companies set these up as offsite retreats for annual award winners, typically with company leadership or often with families. With the advent of more broad-based recognition, there is a plethora of options, ranging from meals, movie tickets, event passes and even tailored vacations.
Source: Vantage Rewards
4. Meaningful Recognition
There’s a scene in the show “The Office” where Michael Scott tries to praise his employees but ends up using the same generic compliments for everyone, like "You're the best!" It’s a humorous take on how easy it is to fall into the habit of recognizing colleagues using generic appreciation.
According to the report on According to the report on R&R trends by AON, SHRM, and Vantage Circle, meaningful recognition has two properties: salience and authenticity.
Salience, in essence, is about making recognition visible and noticeable. It is relatively straightforward to achieve. For instance, most employees are obligated to monitor their inboxes regularly. This makes email an easy tool for delivering recognition, ensuring that the message reaches its intended recipient.
Authenticity, on the other hand, is all about the recipient's perception of genuineness. If a recognition is perceived as genuine, then it is meaningful to the recipient, which motivates them.
Consider these employee recognition messages. Which is more impactful? A generic message that is non-meaningful "Well done in the customer presentation, great job" or a specific, thoughtful note like, "Well done in the customer presentation. I really liked how well you had prepared and the way you presented the analysis. It made me feel so amazing to see the progress that you have made."
The latter clearly stands out as it reflects genuine appreciation, highlighting specific efforts and the positive impact on the team. It makes the recognition feel personal and meaningful.
5. Peer-to-peer Recognition
Traditional R&R programs- such as annual awards, quarterly achievements, or long service awards (LSA)- often fall short in terms of reach and regularity, as it celebrates the contributions of only a selected few employees at set intervals.
While people certainly value praise ‘from above’ it can be equally or even more motivating to be recognized by peers or subordinates- especially when it happens frequently. By democratizing the appreciation process, one can expand its reach and frequency beyond the constraints of traditional programs.
Source: Vantage Rewards
This mechanism also serves as a valuable tool for managers, providing them with real-time insights and a clear picture of what’s happening on the ground along with the achievements and contributions of their team members.
Leveraging R&R for Building High-performing Teams
1. Prioritizing Time for Recognition
Time scarcity often hinders leaders from consistently recognizing their team members. Taking a few minutes to say “thank you” or “good job” may yield substantial returns in increased morale, productivity, and loyalty towards the organization. This could be as simple as a few-minute block every Friday to acknowledge or praise the successes of the workforce.
This is something every manager should be thinking about. It costs nothing and only takes a few minutes, but the benefits can be enormous and have a lasting impact.
2. Overcoming Visibility
As companies grow, leaders inevitably become distanced from the day-to-day operations and accomplishments of their employees that drive success. Many employees who feel that their work goes unnoticed are significantly more likely to seek new opportunities elsewhere.
To address this challenge, empower the direct reports or the managers to be the eyes and ears of recognition. By doing so, you ensure that accomplishments at all levels are actively acknowledged and celebrated.
When a manager recognizes an employee's exceptional work, leaders should also step in to add their own words of appreciation. This lets the employees know that their efforts are noticed and valued.
Also, keep an eye on peer appreciation—after all, who knows the true value of an employee better than those working alongside them day in and day out? It will help you identify hidden stars whose impact may not be immediately apparent on a spreadsheet or in a quarterly review.
3. Budget Constrain
Fancy rewards and bonuses are not always possible, especially for smaller teams or companies with tighter budgets.
Sometimes the most powerful form of recognition often comes from the heart and not from the wallet. The cornerstone of a truly impactful R&R strategy lies in emphasizing social and emotional value.
As noted by Yuvaraj Srivastava, CHRO of MakeMyTrip, in an SHRM Masterclass, "Recognition is only successful if the giver of the reward and recognition is emotionally connected."
These intangible elements should not be an afterthought or a mere substitute for financial incentives, but rather the primary focus of recognition efforts.
While prioritizing social and emotional value, it's still important to allocate financial resources wisely.
Implementing a tiered reward system where monetary rewards are reserved for exceptional achievements, while smaller milestones are celebrated through non-monetary means, can help balance the budget.
4. Fair Recognition Practices
Recognition is a powerful tool for motivating and retaining talent, but it must be wielded with care and precision. Advocate for fair recognition by establishing clear, objective criteria for recognition. This transparency eliminates perceived favoritism and ensures that every team member understands what it takes to earn acclaim.
Moreover, sharing success stories and involving skeptical team members in the design of recognition initiatives can help build enthusiasm.
Recommended Resource: How To Avoid Favoritism In The Workplace While Rewarding Employees
Conclusion
The journey to creating a culture of recognition is not without its challenges. Yet, with creative solutions and a commitment to equitable practices, these obstacles can be transformed into opportunities for growth and innovation.
This article is written by Shikha Moni Gogoi, a Content Writer at Vantage Circle. With a passion for writing, Shikha brings both creativity and expertise to her role. For any related queries, contact editor@vantagecircle.com.
