GLOBAL TRENDS IN EMPLOYEE REWARD AND RECOGNITION

Figure 1 : Employee reward and recognition (Syed, 2022)

Employees’ contribution to any organization is the key to success. For this purpose, establishing a balance between contributions of employees to the organization and the organization’s contribution to the employee is must. This is one of the reasons that organizations in the present day have realized the importance of reward and recognition for the employees in order to enhance their contribution in the organizations.
(Zeb et al, 2021)

Rewards and recognition are important tools that can be used to motivate employees and improve their performance. Rewards can include things such as bonuses, raises, or special privileges, while recognition can come in the form of words of appreciation or awards.

When used effectively, rewards and recognition can help to create a positive work environment and increase employee satisfaction. They can also help to boost morale and encourage employees to work harder and achieve better results (Quit Genius, 2023)

Applying Maslow's Hierachy of needs to the Work Place

When Abraham Maslow created his Hierarchy of Needs, he argued that humans are motivated by five essential needs: physiological, safety, social, self-esteem and self-actualization (also known as self-fulfillment).

At the bottom of the pyramid are our physiological needs, such as food, water, sleep, and warmth. Safety concerns come next, and these include comfort, security, and stability. Moving up the pyramid, we come to social needs, such as a sense of belonging and friendship, and esteem needs, such as a positive self-image, prestige and status, before topping out with self-actualization, which is about feeling fulfilled through growth, advancement and creativity (Sodexo Engage, 2023)

Figure 2 : Maslow's Hierarchy of Human needs the expanded hierarchy model (Teach thought staff, 2022)

What are the latest trends in reward and recognition

As per Hulme (2022) State that

1. Access to health and well being support

Unum’s research found that financial worries are affecting both physical and mental health, with 40% of employees saying they have low energy, 32% are unable to sleep and 25% are so worried about their finances they’re feeling depressed.

Help employees build financial resilience through a specialist financial education platform and signpost them to relevant employee assistance programme resources and shopping discount perks.

2. Hybrid working

Covid-19 accelerated trends of working from home and hybrid working, which is set to continue in 2023. While companies can’t stop employees from looking for new opportunities, research from Glassdoor indicates that employers who offer their staff a good hybrid working experiance are likely to have less turnover. But there is no single solution.

The key to successful hybrid working is creating a workplace community and culture that supports employees professionally and personally so they can achieve a healthy work/life balance.

3. Inclusive benefits and inter generational reward

With people living and working longer than ever, the multi generational workforce looks set to keep growing. Here we see pressures are stacking up on the so-called ‘sandwich generation’, who are caring for elderly parents and dependent children.

Employers should invest time in understanding and identifying which benefits are most appealing to each cohort within their workforce and create a comprehensive diversity, equity and exclusivity policy to answer those unique needs.

4. ESG rewards

Environmental, Social and Governance (ESG) has rocketed up employers’ agendas in recent years. Ensuring a joined-up approach to engage employees in your ESG commitments will be the key to success in 2023, both in helping establish a socially responsible business and for attracting and retaining staff who are fully invested in your corporate values.

Deloitte’s 2020 Global Marketing Trends Report shows that purpose-driven companies are 40% more likely to retain talent than their competitors. Offering variety and flexibility in your activities will allow employees to choose the type of activities that resonate with them and create a lasting impact in society.

And including ESG options in employee benefit packages, such as introducing an electric vehicle or cycle to work scheme, will in turn help staff to reach the office in an environmentally friendly manner.

What are the technology involve in rewards & recognition?

One way of increasing job satisfaction through an R&R program is through instant peer recognition, which allows employees to thank or compliment their colleagues for a job well done, perhaps through a company intranet system or social tools that allow them to show instant appreciation. A more structured rewards and recognition module could be the way forward for some workplaces, focusing on easy-to-measure metrics, such as reaching internal milestones or KPIs, which can then be monitored by the HR business person, with the data being used to learn more about what is working for the business (Darwinbox, 2023).

How to implement a Reward and Recognition System

Video 1: How do i build a employee recognition programme (Bonusly, 2021).

References

Bnusly, (2021) How do i build a employee recognition programme. [Online Video0 Available from https://www.youtube.com/watch?v=bRM19CxIDek [Accessed 03 May 2023].

Drwinbox, (2023) Rewards and recognition. (Online) Available from https://explore.darwinbox.com/hr-glossary/rewards-and-recognition [Accessed 03 May 2023].

Hulme, J. (2022) Four trends in reward and benefits strategies for 2023. [Online] Available from https://reba.global/resource/four-trends-in-reward-and-benefits-strategies-for-2023.html# [Accessed 03 May 2023].

Quit Genious, (2023) Reward and Recognition [Online] Available from https://www.quitgenius.com/hr-glossary/rewards-and-recognition [Accessed 03 May 2023].

Sodexo Engage , (2023) Applying Maslow's Hierarchy of Needs Theory to HR Responsiblities. [Blog entry] Availalhttps://www.sodexoengage.com/blog/rewards-recognition/applying-maslows-hierarchy-of-needs-theory-to-hr-responsibilities

Syed, N. (2022) Resilience, remote work and reward: HR issues for 2022. [Online] Available from https://www.hcamag.com/asia/specialisation/reward-recognition/resilience-remote-work-and-rewards-hr-issues-for-2022/320695 [Accessed 03 May 2023].

Teach Thought staff, (2022) What is maslow's hierarchy of needs. (online) Available from https://www.teachthought.com/learning/what-is-maslows-hierarchy-of-needs/ [Accesseed 03 May 2023].

Zeb, A. Rehman, S. U. Saeed, G and Ullah, H. (2021) A study of the relationship between reward and recognition and employee job satisfaction: a literature review. Abasyn Jounal of social science 7 (2) 278. Available from https://www.researchgat e.net/profile/Hamid-Ullah-3/publication/326356368_A_Study_of_the_Relationship_between_Reward_and_Recognition_and_employees_Job_Satisfaction_A_Literature_Review/links/5b478997a6fdccadaec40388/A-Study-of-the-Relationship-between-Reward-and-Recognition-and-employees-Job-Satisfaction-A-Literature-Review.pdf [ Accessed 03 May 2023].