Recognition Program(s)
Sample Policy
Recognition Program(s) Policy
Recognition Policy Overview
We don’t need to tell you… it’s competitive out there. Employee engagement just
might be the make-or-break metric for your organization. Significant research
shows a strong connection between employee engagement and employee
recognition. When employees are recognized for their accomplishments in a
meaningful way, they feel appreciated and valued. That means increased
productivity and profit.
Making recognition a critical part of your organization’s Total Reward Strategy and Employee
Value Proposition is a smart, competitive move.
We’ve put together this document on recognition policy to bring greater clarity to the
implementation of recognition. Just some simple guidelines to follow and things to consider.
Five Common Categories of Recognition
Service Award Programs | Tangible awards and recognition provided to employees who
achieve specific service milestones. Examples: Years of Service, Key Milestones or Significant
Life Events
Recognition Programs | After-the-fact appreciation or acknowledgement of individual or team
behavior, effort or business results that support corporate goals and values. Examples: Spot
Awards, Organization-Wide or Goal-Specific Recognition Programs, or Exceeding Performance
Programs
Nomination Programs | Formalized recognition programs where employees and managers are
nominated for demonstrating exceptional performance. Examples: Employee-of-theMonth/Year
Referral Programs | Formalized programs where current employees are encouraged and
rewarded for introducing new employees or ideas to increase business results. Examples:
Employee/Business Referral, Employee Suggestion Programs
Employee Events: Formal social outings that provide the organization an opportunity to
recognize and demonstrate appreciation for team member efforts. Examples: Corporate
Anniversary, Holiday Party, Summer Outing.
Recognition Program(s) Policy
Recognition Policy Overview
Guidelines and Considerations for Developing Recognition Policy:
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Program Name: Keep it fun. Something easy to commit to memory. Program name
goes a long way in driving excitement and establishing an emotional connection.
Program Type: Monetary, non-monetary, formal, informal, individual, team, etc.
Eligible Audience: Make sure this is well-defined (full-time, part-time, contractors, etc.)
Objective: Behavior-specific programs focus on the behavior that drives business
results, not just the results themselves.
Business Impact: These programs are tailored to the behavioral needs of an
organization. Your program objectives should be connected to a business impact and
can focus on KPIs, such as quality, workplace safety, customer service needs and more.
Value Proposition: Focus on the value to the employee, as well as how the initiative
aligns employee behavior and effort with organizational values and job-critical
competencies. The best programs reward and recognize the behaviors that lead to
individual success and achieving critical business results.
Metrics for Success: Because these programs are designed around a specific
objective, which is tied to a business impact, the activity and behaviors displayed can be
measured and linked to results.
Awards: Can include a mix of symbolic, monetary, non-monetary, tangible and
intangible awards to reinforce lasting behavioral change, depending on the objective.
Tax Management: Consult with internal accounting resources. Various programs are
handled differently from a taxation standpoint, and the guidance here can be confusing
for many organizations.
Relevant Dates: Start, end, ongoing deadlines or milestones.
It’s a great idea to develop a Recognition Philosophy—something that captures
the high-level goal and how it will benefit the organization. Program funding and
award specifics also tend to raise questions. Get out in front of that with clear
policies/definitions. Here are examples:
OUR RECOGNITION PHILOSOPHY—Policy Sample
To build a culture of recognition, we will utilize a variety of formal and informal methods to
recognize employees demonstrating behaviors that align with our corporate goals, values and
operational priorities.
PROGRAM FUNDING—Policy Sample
Funding for the Employee Recognition Program(s) will be centralized in the HR Department to
ensure efficiency and consistency across the organization. On an annual basis, we will fund all
recognition activities at 2% of our aggregate payroll. The 2% payroll budget will cover more than
just awards and will account for the administration, communication, technology, training, and
measurement of the program(s).
Recognition Program(s) Policy
Recognition Policy Overview
AWARDS—Policy Sample
Employees may receive monetary and/or non-monetary awards and recognition. Select
recognition programs will provide the option of awarding a predetermined monetary allocation or
non-monetary recognition at the time of issuance. All recognition awards will be documented,
reported and processed through the employee recognition platform to ensure proper tracking
throughout the organization.
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MONETARY AWARDS
Monetary awards will be transferred to the employee in the form of redeemable points to
be used in our company’s online awards catalog, [enter name of catalog]. Monetary
awards are subject to income taxes.
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NON-MONETARY AWARDS
Examples of non-monetary awards include eCards, thank-you notes, plaques, trophies,
certificates, parking spots, vacation days, casual days, company-branded merchandise
and other similar offerings.
Developing policies brings greater clarity and structure to your recognition efforts. It also puts
you in position to effectively measure the impact of your recognition program. Here are some
thoughts on measurement.