Best Practices for Building a Culture of Recognition

Gone are the days when employees tolerated toxic work environments. Employees are no longer willing to tolerate toxic work environments that undermine their well-being and job satisfaction. High stress, poor communication, lack of support, and negative organizational cultures are being increasingly rejected by today's workforce. Instead, professionals are gravitating toward employers who offer supportive, positive work environments that enhance their overall quality of life.

In this blog, we uncover how recognition can help build a positive company culture and share best practices for establishing a culture where recognition is practiced consistently and valued.

The Importance of a Positive Company Culture

Forbes defines company culture as the "shared norms, values, attitudes, and practices that shape a company's collective identity." This encompasses everything from how employees interact with each other to the core principles that guide their work. Organizational culture is formed through the daily actions and behaviors of employees, which collectively contribute to the overall work environment and influence how the company operates.

The key to helping your employees thrive is cultivating a positive work environment that supports and empowers them. By building a healthy atmosphere, you can foster psychological safety across teams, enabling employees to excel both in their roles and within the company. As a result, your teams will become more motivated, resilient, and innovative -- all components that contribute to an organization's success.

Theresa Harkins-Schulz, Inspirus' SVP of Product, recently shed light on this necessity: “More and more, I hear stories of people prioritizing their personal physical and mental well-being in the workplace. They desire company cultures where they are valued, accepted, and supported in their personal and professional life. Life is too short to be in a ‘job’ that doesn’t align with your values. People want to belong, and with as many hours as we spend at work, it's important to find a great culture where you feel like you belong so you can thrive at home and work.”

When companies invest in building a cohesive and positive culture, they are investing in their people. A positive culture will set their employees and organization up for long-term success.

The Cost of Toxic Company Culture

It should be no surprise that employees today are actively seeking out companies that provide a supportive and enriching work environment. Employees now seek workplaces that enhance their overall job satisfaction and personal well-being, rather than detracting from them. In fact, one of the primary reasons employees leave their jobs is due to a toxic company culture.

Research from MIT Sloan during the Great Resignation highlighted this issue. Their study uncovered that workers were 10.4 times more likely to leave their jobs due to a toxic work environment than for reasons related to compensation.

Further supporting this, Gallup’s 2023 State of the Global Workplace Report found that nearly half (41%) of disengaged employees would consider changing their workplace culture or engagement levels if given the chance. 

The data is clear: toxic work environments are costly for organizations, not only in terms of turnover but also in lost potential and morale. Prioritizing a positive and appreciative work culture is essential for retaining employees and fostering a motivated, engaged workforce.

How Recognition can Strengthen Culture

One common challenge in today's modern workforce is that defining and implementing culture has become increasingly complex. With the rise of remote and hybrid work arrangements, employees are often dispersed across various locations, making it more challenging to create and maintain a unified company culture. The physical distance between team members can lead to a sense of disconnection and culture siloes, complicating efforts to foster a cohesive and engaging work environment.

Employee recognition can help overcome these challenges. In fact, employees report increasing recognition is one of the most effective ways to improve workplace culture and engagement.

Recognition programs are a valuable tool that HR teams can leverage to foster, unify, and strengthen their company’s culture, even in the face of remote and hybrid work challenges. These programs offer a structured approach to celebrate and reinforce the values and behaviors that define the organization’s culture, regardless of where employees are located. 

Here’s how recognition programs can make a significant impact:

• Fosters a Positive Environment: Recognition programs create opportunities for employees to feel seen and valued for their contributions. By regularly acknowledging and celebrating achievements, organizations can foster a positive environment where employees feel appreciated and motivated. This appreciation helps reinforce a culture of respect and encouragement, making employees more engaged and connected to their work and the organization.
• Connects a Dispersed Workforce: For remote and hybrid teams, recognition programs can bridge the physical gap between employees. Virtual recognition events, online awards, and digital shout-outs can bring team members together, creating shared experiences and celebrations. This collective acknowledgment helps build a sense of unity and strengthen relationships, ensuring that employees, whether they are working from home or a in co-working space, feel like they are part of the same team.
• Strengthens Core Values: HR teams can consistently reinforce a company's core values by rewarding behaviors that exemplify these values. For example, if collaboration is a core value, recognizing team efforts and cross-departmental successes can highlight and promote this behavior. This ongoing reinforcement helps embed cultural values into daily practices and interactions, making them an integral part of the organizational ethos.
• Fuels Employee Engagement: Employees are more likely to be engaged and committed when they see that their efforts are recognized and valued. Recognition programs not only boost morale but also drive higher levels of engagement by creating a culture where employees feel their contributions are making a difference. Engaged employees are more likely to contribute positively to the company’s culture and overall success.

Best Practices for Creating a Culture of Employee Recognition in the Workplace

To help you get started, we've outlined practical strategies that can help you effectively build a culture of recognition. Here are some key strategies to guide your recognition programs:

#1 Encourage Peer Recognition

Develop a system where employees can acknowledge and celebrate each other's contributions easily. Having consistent peer-to-peer recognition throughout your organization can help strengthen relationships. Plus, when employees see their teammates recognizing one another, they will also be more inclined to recognize their teammates.

Implement tools such as recognition platforms or internal communication channels where employees can post public shout-outs, express gratitude, and highlight each other’s achievements. Providing employees with a central recognition hub can encourage them to recognize others more regularly. 

#2 Involve Management and Leadership

Despite the stereotype, culture is not just an “HR thing.” For an organization to build a unified culture that empowers employees, leaders and managers must champion and recognize the behaviors they want to see. Leaders and managers can help contribute by:

1. Rewarding Good Behaviors on Their Team: Leaders and managers have the unique position of directly observing and influencing team dynamics. By recognizing and rewarding positive behaviors, they can reinforce what’s valued within the team and the broader organization. This might include publicly acknowledging a job well done, providing growth opportunities, or even offering tangible rewards like bonuses or extra time off. These actions not only validate the individual’s contributions but also set a standard for others to follow, creating a ripple effect throughout the team.
2. Advocating for Culture-Aligned Values: Leaders and managers serve as role models for organizational values. When they consistently advocate for and embody these values, they demonstrate their importance and encourage others to align with them. This might involve integrating core values into everyday decision-making, communication, and goal-setting processes. By visibly living out the company’s values, leaders and managers can help create a culture where these principles are deeply ingrained and respected.
3. Highlighting Team Members Who Embody Values: Spotting and celebrating team members who exemplify organizational values is a powerful way to reinforce desired behaviors. Leaders and managers can do this through various recognition methods, such as shout-outs in team meetings, featuring them in company newsletters, or nominating them for awards. This not only boosts the morale of those recognized but also provides a clear example for others to emulate. It helps create a culture where positive behavior is visible, appreciated, and emulated.

Leaders' and managers' involvement in rewarding good behaviors, advocating for values, and highlighting exemplary team members can make a significant impact. Combined with a robust employee recognition strategy, these efforts can create a positive and supportive workplace culture where employees feel valued and motivated to do their best.

#3 Reward Value-Aligned Behaviors

Recognition programs are a great way to reinforce your company's core values. You can structure recognition programs around the company's culture and core values, rewarding those who embody them. This approach reinforces the behaviors and actions that contribute to having a positive work environment and support the organization's broader goals. 

For example, if innovation is a core value, recognize and reward employees who introduce new ideas or solutions. This alignment not only celebrates individual accomplishments but also promotes behaviors essential to the company's culture.

#4 Use a Points-Based Recognition Program to Incentivize Recognition

Implement a points-based recognition system, like Inspirus Connects, to encourage frequent recognition among team members. By attaching a monetary value to recognition, employees will be more inclined to recognize their teammates. Plus, these platforms create a central location for employees to easily manage all recognition activities.

With a points-based recognition system, employees can send an allotted number of points to their co-workers throughout the year and accumulate points through a range of accomplishments, such as meeting performance targets or contributing to team projects. Points can then be exchanged for rewards such as gift cards, experiences, or extra time off, allowing employees to choose rewards that are meaningful to them and enhancing their overall satisfaction with the recognition process.

#5 Leverage Technology

Utilize digital tools and platforms to streamline and enhance your recognition efforts. Technology can automate many aspects of the recognition process, from tracking achievements to managing rewards. Digital platforms can also facilitate real-time public recognition, making it visible across the organization.

For instance, recognition software that integrates with your HR systems can help manage and scale the program efficiently, ensuring that recognition is consistent and accessible to all employees. For example, Inspirus Connects, Inspirus' digital platform, integrates with Microsoft Teams and Slack to allow employees to easily recognize their teammates with the tools they use daily.

Summing It Up

Recognition programs are key in shaping and enhancing company culture, especially in remote and hybrid settings. By consistently acknowledging employees' efforts, these programs help embed core values into daily work life. This commitment to recognizing contributions not only reinforces the organization's culture but also promotes a culture of recognition where appreciation and respect become the norm, leading to stronger employee engagement and a more cohesive team dynamic.