Comparing Formal and Informal Recognition

If you feel like you are having a difficult time convincing your employees to renew their contracts, you need to make sure that your employees are not overlooked. You probably have a lot to do on a daily basis, but you cannot forget about the hard work that your employees do every day. That is where having a comprehensive employee recognition program at your company can make a significant difference. In general, there are two different types of recognition. The first is called formal recognition and the second is called informal recognition. What are the differences between them, and how can you use both of them to make sure that your employees are properly recognized?

What Is Informal Recognition?

The most common type of employee recognition is called informal recognition. This refers to compliments that a lot of employees give each other. The most basic type of informal recognition is simply telling an employee that they have done a good job when they go above and beyond.

Just because there isn’t a tangible reward that goes along with employee recognition doesn’t mean informal recognition is not important. For example, another type of informal recognition is shouting out an employee on social media. Or, you may recognize another employee in an email blast that you sent to the entire department.

Informal recognition is important because it lets employees know that their contributions are not overlooked. A lot of employees fear becoming anonymous within the company. If you give an employee a compliment when he or she does well, you prevent this from happening.

What Is Formal Recognition?

Even though informal recognition is helpful, it is not enough to convince your employees to stay. There are certain situations where formal recognition is more important. Formal recognition means that your employees are getting a tangible reward for the work they have done. There are several common types of formal recognition. They include:

• A Bonus: You may want to let your employees know just how much they are appreciated by giving them a cash bonus. This is particularly helpful if they know that the company is having a great year because of their hard work.
• Time Off: You can also formally recognize your employees by giving them some extra time off. Do not underestimate the impact that getting sent home a few hours early can have on their morale. Or, you may want to go above and beyond by giving your employees an entire day off.
• A Free Vacation: If you have the money to do so, you may want to provide your employees with a free vacation somewhere. This is very common in sales departments, where the person who generates the most revenue for the company gets to select a free vacation somewhere. You may want to consider using this as a part of your recognition program as well.

• A custom awards: Making awards and gifts with iron medallions and personalized coins can be a fun and meaningful way to reward customers, employees, or any other important people. Affordable challenge coins are an affordable way to create awards for your team or let people regularly rally to your goals. Use the medallions you are planning to give out as awards for staff and employees or as a daily reminder of your goals.

Consider these different forms of formal recognition. Do not forget that the ultimate form of formal recognition is to give someone a promotion.

Best Practices for Employee Recognition

Employee recognition is very important today, but if you want to maximize the benefits of your efforts, you need to keep a few important best practices in mind. First, make sure that your employees understand how the recognition program works. Do you need to be open, honest, and transparent about how you recognize certain employees and the work that they do?

Second, you should give your employees an opportunity to recognize each other. Even though a lot of recognition comes from the top down, you should provide your employees with an opportunity to nominate each other for recommendations and recognition. This can make a significant difference in their participation in the program.

Finally, do not forget to collect feedback from your employees as well. Employee recognition is a great way to provide positive feedback to your employees, but you need to make sure that your employees give you some feedback as well. This will make a significant difference in the company.

Make Sure You Give Your Employees the Credit They Deserve

Clearly, there is a lot that you need to think about regarding employee recognition. It is something that you cannot overlook, and it can play a major role in the future of your company. If you do not give your employees the recognition they deserve, they may feel like they are unimportant. As a result, they may not think twice about leaving your company for a better opportunity elsewhere. On the other hand, if you have a regular schedule in place that allows you to recognize your employees properly, you will have an easier time convincing them to renew their contracts when the time comes. If you need help putting together a drawing recognition program, reach out to a professional team that can help you.