Investing in a robust employee recognition program can help improve engagement and morale during times of economic and business uncertainty.
By Maggie Mancini
Economic uncertainty is wreaking havoc on employee morale. From financial stress to rising burnout, employees are increasingly disengaged and unmotivated. But the right approach to appreciation can make a big difference. Recognition programs with the ability to redeem points for products tend to do well during challenging times, says Paul Gordon, senior vice president of sales at Rymax. As employees see prices go up everywhere and feel the impact of those costs on their wallets, they can leverage the points they’ve earned from being recognized at work to redeem for items that may be outside of their budget, he says.
“Programs like this flourish during uncertain times because there’s a tremendous value equation there,” Gordon says. For example, if an employee is looking to buy a new vacuum — which is already expensive but might become even more pricey amid ongoing uncertainty surrounding import tariffs — being able to redeem that product via points earned from work contributions really proves the value of their company’s recognition program.
“We think that it’s important during these times to really freshen up whatever the offer is,” Gordon shares. “Make sure that the products are very current, make sure that there are plenty of new releases, and be cognizant of what’s going to happen in terms of demand for certain products over others.”
Challenging economic times reveal the difference between need and desire. When there’s economic volatility, employees know that things will bounce back eventually, but what they don’t know is when that point will be. Things that people need will be redeemed more than things they desire, he says.
“If you follow that logic, you may need new cookware, you may need new appliances, or something more conventional,” Gordon says. “At the same time, you may want new luggage or a handbag, so organizations will see a shift in terms of redemptions by category, but overall redemptions will likely go up during this time.” And it’s a good idea to offer a variety of both categories of items.
But at the crux of it, the importance of any recognition program is the desire to be recognized, Gordon explains. It’s a basic human need. When employees receive rewards from their recognition program, they’re able to build pride both at work and at home from the knowledge that the products they receive are there because their company has acknowledged their special contributions, he says.
“The ability to give someone recognition with something that’s tangible really goes to the core of what being a human means,” Gordon says. “It also builds community within an organization, as everyone is involved and has the chance to be recognized for their work.”
There are a few key ways that organizations can make the most of their recognition programs, Gordon says. Companies need to have a really strong communication vehicle. HR and business leaders should update the recognition platform regularly with products that are linked to the time of year and the specific needs of the workforce.
“People want to see things that are current,” Gordon says. “When you have a platform that doesn’t change, it becomes stagnant right away, and you’re going to see drop-off in terms of utilization.”
It’s also good to have employee ambassadors that really believe in the value of employee recognition. “It’s one thing for the CEO to sign off on the program from a budget standpoint, but that isn’t doing anything to truly engage people,” he explains.
The companies that do employee recognition best are the ones that create community around it and keep employees engaged on what’s new and how they can benefit from it.
