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Why most rewards and recognition programs fail

Recruitment software is among the most popular investments in HR technology this year. 72% of respondents are acquiring tools to identify high-quality candidates amid the ongoing global talent conflict.

However, despite the fact that talent acquisition is a top priority for many, investments in the field of talent recognition are lagging. Certainly, it is one thing to recruit talent; it is quite another to retain it.

According to a survey conducted by Reward Gateway, an employee engagement specialist, 96% of HR managers are of the opinion that the implementation of a rewards and recognition program can have a positive impact on employee retention.

Nevertheless, only 20% of respondents are confident that they possess the necessary tools and knowledge to successfully initiate an impressive campaign.

The study indicates that the majority of rewards and recognition programs are unsuccessful due to the following reasons:

The programs do not permit continuous or immediate recognition.
They are excessively general.
They significantly depend on manual processes.

“While it’s great to see so many HR leaders understanding the positive impact of employee engagement on business, traditional methods and manual processes to achieve current workforce employee engagement goals are no longer an option,” said Doug Butler, CEO of Reward Gateway.

“What employees desire is continuous, immediate, and impactful recognition that is reflective of the “always-on” workplace culture and the “always connected” personal lives that many individuals now lead.”

Scott Johnson, the CEO and founder of Motivosity, an employee recognition software company, believes that supervisors should expand their rewards system beyond the confines of key performance indicators.

He suggested that a more effective approach would be to acknowledge certain interactions that are often overlooked by management, such as when colleagues offer a kind remark to elevate team morale or volunteer to coach others.

Consequently, rewards and recognition programs should be designed to align with the company’s values and reflect the culture of the team.


The most recent developments in software for employee rewards and recognition

HR executives can anticipate modifications to the functionality of employee rewards and recognition software as organizations prioritize enhancements to the overall employee experience.

For example, older systems granted administrators complete autonomy in determining which individuals or entities were worthy of recognition.

However, in the present day, the primary objective is to achieve social recognition. Messages of gratitude may be publicly posted by any member of the team.

Certain recognition platforms operate similarly to social networking sites, allowing employees to acknowledge or identify their colleagues in a community post that celebrates their accomplishments. This enables peer-to-peer recognition.

Managers have the ability to distribute immediate rewards, including electronic greeting cards, tokens, or coupons, in addition to these quick online kudos. The digital rewards can be exchanged for a genuine gift at partner establishments by team members.

Real-time feedback and customizable rewards are the hallmarks of the most effective employee recognition software.

However, some also incorporate analytics tools that identify the behavioral patterns of employees who perform exceptionally well in their positions. Managers may interpret these discoveries as indicators of meritorious performance.

Butler stated that the primary objective of investing in this type of HR technology is to “reinforce the company’s mission, purpose, and values, and provide employees with valuable recognition and rewards that they value.