Making the Business Case for Recognition

In today’s competitive talent landscape, retaining top talent and keeping employees, at all levels, engaged is more critical than ever. If 2024 is the year of retention then organisations need to build and maintain a culture of retention – and that starts with the way we recognise and support our people.

One of the memorable keynote observations for me recently came from best selling author on human relationships Esther Perel at Workhuman’s 2023 conference, when she said “We used to leave our jobs because the factory closed. Today, we leave jobs because we aren’t being recognised”. All the research I’ve been involved with in recent years on retention and engagement always comes down to how well recognised and supported our people feel.

The conversation around recognition in the workplace has now evolved from a mere nicety to a strategic imperative for organisations worldwide. However, this often requires an internal culture shift for many HR and business leaders, and it can still be a struggle to have the necessary conversations with the right people.

At Workhuman Live I had a podcast conversation Brenda Pohlman, a practice leader and senior recognition strategist at Workhuman, about how we can shift the dial on internal conversations around recognition and engagement and make the business case for the investing in recognition.

Here are the 5 key points from the conversation:

1. Seeing recognition as the cornerstone of Engagement and Retention

Brenda underscored the undeniable link between recognition and employee engagement and retention. At the time of our conversation there was still a lot of speculation around trends like “great resignation”, which underlined an opportunity for organisations to see that recognising employees for their contributions is not just a feel-good practice, but a strategic necessity. Research consistently demonstrates that employees who feel valued and appreciated are more likely to stay with an organisation and exhibit higher levels of engagement.

2. Leveraging Technology to Facilitate Recognition

While recognition may seem like a straightforward interpersonal interaction, Brenda highlighted the role of technology in driving and facilitating these practices within organisations. Contrary to any concerns that technology may erode human connections, it can be the conduit for bringing back the natural inclination to express gratitude in the workplace. We are used to thanking people digitally in our day to day lives and there’s no reason why technology-enabled recognition platforms at work can’t streamline the process, ensuring consistency and scalability across the whole organisation.

3. Training and Tools for Effective Recognition

One crucial aspect that often gets overlooked is the need to help and support employees with the necessary training and tools to express gratitude effectively. Brenda raised the point that whilst the sentiment of recognition may be natural, the skill to articulate it meaningfully requires guidance and practice. By offering training programs and intuitive tools, businesses can empower their workforce to engage in consistent and impactful recognition practices.

4. The Role of Monetary Rewards in Recognition

Non-monetary recognition is valuable as it’s usually expressed personally (whether in person or through technology) and creates a positive emotion. However there is a strong case to be made for incorporating a monetary component into the recognition experience too. This can enhance the impact and connection of recognition, especially when it’s coupled with specific feedback. Contrary to concerns, research indicates that monetary rewards, when appropriately integrated into the recognition, contributes significantly to the overall recognition experience and wider employee morale.

5. Making the Business Case for Recognition

The imperative of building a robust business case for recognition should resonate well with HR leaders and line mangers. Demonstrating the tangible benefits of recognition initiatives, such as improved employee engagement, retention, and improved organisational performance, is essential for getting support from organisational leaders. By quantifying the ROI of recognition programmes, HR professionals should be able secure the support and resources necessary to embed recognition into the organisational culture.

It’s clear that now, more than ever, recognition isn’t a formality or nicety, but a strategic lever for driving employee engagement and retention. By embracing technology, providing training and tools, integrating monetary rewards, HR leaders should be in a position to build a compelling business case, enabling their organisations to harness the transformative power of recognition to create thriving workplace cultures where employees feel valued, motivated, and inspired to contribute their best.

You can listen to my full conversation with Brenda Pohlman on HR Means Business – Helping Business Leaders to Understand the Power of Recognition

Redefining the Employee-Employer Relationship in 2024

It’s fairly common for the HR and TA communities to spend the first few weeks of a New Year focused on analysing and forecasting the emerging trends we expect to see play out in the world of work over the coming 12 months, and early 2024 has been no exception. It’s looking like the dynamic landscape of work is set to witness significant transformations.

Recently I had a great podcast chat with Neil Pickering, Senior Manager of HR Innovation at UKG (Ultimate Kronos Group), and we talked about the key trends we expected to see over the upcoming. We identified these four main themes for 2024:

1. The Year of Trust: Redefining Employee-Employer Relationships

In the wake of the COVID-19 pandemic, employee preferences regarding when, where, and how they work have undergone a radical shift. Whilst my own research from 2018 indicated that these trends already existed, the Covid pandemic definitely accelerated them. The focus in 2024 has now shifted to redefining the employee-employer relationship, with the overarching theme being trust – Neil’s research indicating that employees are seeking increased trust in their employers and organisations.

This is underscored by a growing emphasis on personalisation of the employee experience. Multi-generational workforces are now the norm, and individual priorities – especially regarding mental health and well-being – are taking centre stage. The challenge lies in delivering unique and personalised experiences tailored to each employee’s needs.

Some of this can be achieved by encouraging more regular manager/employee check-ins, empowering our people to provide feedback, and enabling self-service wellbeing options to help create a more personalised work experience.

2. From Buying and Borrowing to Building and Mining

Our second key trend revolved around talent strategies, which we see shifting from traditional hiring practices to a more holistic approach. Organisations are moving beyond simply buying or borrowing external talent and instead focusing on building and mining talent within their existing workforce. This approach involves identifying and utilszing the skills, capabilities, ambitions, and passions of their current employees.

Our workforces are becoming increasingly aware of the importance of growth opportunities, and expecting organisations to enable their personal and professional development. Part of this will include identifying individual passions outside of work and aligning them with organiational needs and priorities.

We see a need for genuine employee resource groups, and transparent communication channels to encourage employees to share their interests to help facilitate a collaborative, growth-oriented environment.

3. AI, Personalisation, and the Future of Workforce Management

During our conversation Neil highlights the growing role of AI in shaping the future of workforce management. The focus is shifting from process-oriented approaches to outcomes, with generative AI streamlining complex processes behind the scenes. This shift enables employees to experience positive outcomes without getting bogged down by intricate procedures.

Processes like self-scheduling, shift swapping, and accessing information about policies such as leave entitlement, will become seamless with the integration of AI, allowing organisations to prioritise outcomes, ensuring employees can navigate administrative tasks effortlessly, which will lead to increased productivity and an enhanced employee experience.

4. ESG Reality Check: Transparency, Trust, and Employee Expectations

The final major trend we covered was the increased prominence of Environmental, Social, and Governance (ESG) initiatives in the corporate landscape. With the EU introducing the Corporate Sustainability Reporting Directive (CSRD) in 2024, organisations will be under increased scrutiny to deliver on their ESG promises. This trend won’t only be influenced by external factors (such as financial markets and regulatory requirements) but also driven by internal expectations from employees and consumers.

The emerging workforce are likely to become active participants in holding their organisations accountable for their social commitments. Businesses will have to be transparent about the outcomes of their ESG initiatives and swiftly address any shortcomings. Authenticity is paramount – we believe employees and consumers will increasingly be looking for tangible proof of an organisation’s commitment to social responsibility.

The world of work in 2024 is poised for some transformative shifts, emphasising trust, personalisation, talent development, AI integration, and ESG initiatives. To thrive in this evolving business landscape all organisations have to display authenticity and a genuine commitment to employee wellbeing. The key to a successful future for businesses in 2024 and beyond lies in embracing change, fostering transparency, and building resilient, adaptive workplaces.

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