Employee Recognition Key Terms

Know the language of employee recognition to enhance your employee motivation strategies

By Michele Vrouvas

Thriving companies today are committed to recruiting and retaining a dedicated staff of qualified employees. Employee recognition programs have become a key part of that process. Studies show that employee satisfaction translates into customer satisfaction. For service-based companies, that's a reality too important to overlook. That's why business owners are investing in what they now call "human capital" so that they can remain competitive in today's market. Become familiar with employee recognition key terms to optimize your HR strategies.

Human capital management

Some organizations today show their commitment to employee recognition with human capital management strategies, such as encouraging individual employee development through education and on the job training.
Try: Find out why Helios HR bases its Apollo Awards program on successful human capital management. Statistics show that employees of companies using these strategies feel that their accomplishments are truly recognized.

Recognition program

Organizations consciously adopt a recognition program in order to show employees they're serious about rewarding achievement.
Try: Read about the decisions companies make when forming recognition programs on the Business Research Lab website. For example, they consider whether awards should be based upon competition, the cost of a recognition program and how to reward one employee's achievement without letting other employees feel they have been slighted.

Awards

Employee recognition programs make awards to individuals who have demonstrated exceptional achievement or loyalty to the company. The term "awards" is used interchangeably with the term "rewards".
Try: Step four of the Kansas Employee Award and Recognition Program reveals the five essential characteristics of rewards and awards that will genuinely express the company's appreciation and motivate employees to continue performing well.

Recognition committee

A recognition committee can be made up of HR staff and representative employees from different units within the company. The committee forms policies for a recognition program and establishes the criteria on which recognition awards are based.
Try: If you're wondering how to form a recognition committee, consider Step 2 of the University of Washington's Employee Recognition Program. Read suggestions for duties of recognition committee members and voting procedures.

Nonmonetary awards

Nonmonetary awards can be a cost-effective solution for organizations that want to recognize employee achievement without stretching their budgets.
Try: Go to the section "Definitions of Recognition Categories" of the USDA's Guide for Employee Recognition to get suggestions for nonmonetary awards that employees truly appreciate.

Service recognition awards

Service recognition awards are usually limited to employees who have passed a milestone in service to the company.
Try: Organizations like Northwestern University not only give service recognition awards to employees who have been with the company for 20 years but also to other employees for every five years of loyal service.