Will HR-led ‘gold star’ programs make employees feel more appreciated?
With 8 in 10 HR professionals indicating that recognition programs are a valuable tool for engaging workers, it’s little wonder there’s been an explosion in such products and the companies marketing them.
“We know that employees who are happier and feel appreciated are more likely to be more productive, so employee recognition programs really are a win-win,” said Shawnee Irmen-De Anda, chief people officer at the mental health provider Thriveworks. Her company started its own, peer-to-peer program, Win of the Week, wherein team members recognize their coworkers for anything from a small act to a solution that helps complete a major project.
But not everybody is convinced such programs are the real key to employee happiness.
“We live under the impression that it is the employer’s job to motivate people,” said Roger Gerard, a management and executive consultant and author of the book Lead With Purpose: Reignite Passion and Engagement for Professionals in Crisis. “It’s not the employer’s job to motivate people — it’s your job to motivate yourself to do the work you’ve chosen as a profession.”
Gerard, who earlier in his career headed HR for a regional healthcare group, makes a clear distinction between incentives, which he views as manipulative, and genuine recognition, which should be meaningful and personal. He points to a definitive text on the topic published in the early ’90s, Punished by Rewards: The Trouble with Gold Stars, Incentive Plans, A’s, Praise, and Other Bribes by Alfie Kohn, which proposed that people do inferior work when they are enticed with money, grades or other incentives.
One company would take issue with that assessment of gold stars. To recognize workers with a touch of nostalgia, Giftpack, a peer-to-peer, points-based gifting program used by companies like Meta, Google and Zappos, has resurrected the go-to awards system from grade school — something that holds unique appeal among millennials and Gen Z, according to founder and CEO Archer Chiang.
Getting a gold star as a kid “not only pushed individuals to reach their potential but also played a crucial role in building confidence,” he said. “As adults, the reintroduction of this concept in the workplace taps into those positive memories, making recognition feel more personal and meaningful.”
Giftpack is just one of a range of companies marketing recognition programs, with each touting its own uniqueness.
From social shoutouts to a colleague for a job well done to a partnership with Amazon that gifts employees with everything from Apple earbuds to kayaks, points-based recognition platform Nectar counts the Society of Human Resource Management as a user, as well as Heineken, Major League Baseball and Digiday Media (parent of WorkLife). Nectar’s research reveals that 7 in 10 employees indicate they’d be less likely to leave a job if they were recognized more often.
Meanwhile, Workhuman, whose clients include Merck, Accenture and Cisco, is so convinced of the efficacy of its program that it offers a money-back guarantee, promising to refund clients failing to achieve a significant improvement in employee engagement or retention.
Tom Libretto, president of Workhuman, said it engages clients in a collaborative, long-term partnership to design, implement and continuously optimize recognition programs based on detailed analytics and client feedback. By tracking the reach and effectiveness of its program, it can help clients link recognition to tangible business outcomes like increased productivity and reduced turnover.
Libretto is critical of the trend toward simple peer-to-peer thank-you’s, arguing that “non monetary recognition delivers zero impact on business metrics.” With so many programs on the market, how can HR leaders know which is best for their company?
Giftpack’s Chiang advises employers to first define clear objectives for a program. He also suggests personalizing rewards according to each employee’s priorities (time off, for example, or charitable donations), as well as incorporating gamification elements to drive participation and enthusiasm.
Tailoring recognition programs to different generations can also optimize impact, according to Brittany Barhite, vp of communications and brand experience at workforce communications platform Firstup. She submits that Boomers tend to value traditional forms of recognition like public praise or formal awards, making ceremonies or personalized notes most meaningful. Meanwhile, Gen Z favors social shoutouts or gamified elements letting them earn badges or rewards.
Regardless of generation, “recognition is powerful,” Barhite maintains. “When employees feel valued, they are more likely to work hard, be satisfied and stay at their job.”