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Formal vs. Informal Recognition
Research shows companies find a balance of formal and
informal recognition is an effective way of keeping employees motivated and happy.
According to Greg Boswell, OC Tanner Recognition Company, the move to make informal
recognition part of a corporate recognition strategy has been due in part to companies
that are working to improve employee retention. In a study conducted by Robert Half
International, 47 percent of executives surveyed said that recognition and praise were the
most important factors in keeping an employee satisfied. However, it's often through
formal programs such as career achievement or employee service awards, management can
implement communication tools and effective training with the power to impact the entire
company. "Formal recognition has the unique potential to tie every employee's achievements
to a company's values and business goals," said Boswell. "With ongoing formal recognition
as a foundation, informal programs can be added to encourage spontaneous appreciation."
Regardless of the size of the company and the scope of the work, all employees deserve the
chance to be acknowledged for their contribution to the success of a company. It's clearly
a win-win situation for business, when people feel valued, they feel better and they
perform better. Not to mention how good it feels to be the giver.
- 33% of people receiving cash awards will use it pay bills.
- 20% of people will not recall what they used a cash award for.
- Considered income and seen as an entitlement not as effective as a tangible award.
Source: Gostick and Elton, The Carrot Principle, 2007
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