Couple of years back a close friend recommended me to watch a show – MasterChef Australia and for someone who doesn't cook and thereby with great apprehension, I started viewing it and got hooked. I especially liked Heston Blumenthal recipes as they took a known concept and made it just wow. 

So, when I got the brief to write an article on Appreciation then I decided to toe the same line, add some interesting twists, focus on some new thoughts and how future will evolve and what can organizations do. 

Appreciation is a fantastic concept and if you go through literature on behavior analysis, psychology, behavioral economics etc. you will suddenly be jolted to the power of appreciation (some reports says 22% higher profitability, 16% higher revenue, 26% higher stock price growth, 26% lesser employee turnover, 20%-37% less absenteeism, 30% higher productivity,improved customer satisfaction (outperforming competitors by 20%), enhanced innovation levels (33% higher), better safety records, and lower health-related costs (41% lower)etc. ). Each of these are so critical and the exact parameters which are discussed on a daily basis across all the C-suite/ C-1 or C-2 suite. 

So, for something so impactful, it’s surprising how neglected it is in most organizations. I know most CHROs/HR teams will roll their eyes and contest heatedly that we have a great framework and so many awards given every year that we are doing enough. Well, the news hot off the press is "No". A survey done by Workhuman in 2023   says that 50%+ of the employees feel under appreciated. 

Why does it happen? There are multiple reasons from a manager’s perspective:

1. Too busy to appreciate.

2. Think that employees don’t value appreciation because they themselves aren’t aware of the power of appreciation. 

3. Fear of appreciating too much and hence appearing not genuine 

4. Too much appreciation will make employees slack.

5. Not sure as they may end up rewarding wrong behavior.

There are many things that organizations can do to build a culture of appreciation. Here are a few tips:

1. Be specific and timely in your appreciation. When you recognize someone for their work, be specific about what they did that was so valuable. And don't wait until the end of the year to give your appreciation. Recognize people's contributions as soon as you see them.

2. Make appreciation personal. Don't just send out a generic email to everyone. Take the time to write a personal note or give someone a shout-out in front of the team. This will make your appreciation feel more genuine.

3. Celebrate successes, big and small. Don't just wait for major milestones to be celebrated. Take the time to celebrate every little success, no matter how small. This will help to keep employees motivated and engaged.

4. Make appreciation a part of your company culture. Make it clear that appreciation is an important part of your company culture. This means that it should come from the top down. Leaders should be setting an example by being appreciative of their team members.

There are also tricky scenarios of appreciating a boss without appearing sucky or appreciating a peer. For some of these the best practice is to give unsolicited appreciation and behind their back so that it travels. Imagine someone telling your peer or boss that you had said great things about them – that impact is so much more and deeply appreciated as well. 

Identify the accolade journey you are on

In today's highly competitive business landscape, organizations strive to differentiate themselves and establish their position as industry leaders. Along this journey, it becomes crucial for organizations to assess their progress and identify their positioning in terms of recognition and accolades. To aid organizations in this pursuit, we have developed a framework to provide a structured approach to assess their journey towards attaining accolades. 

This framework aims to help organizations evaluate their current state, identify areas of improvement, and strategically navigate the path to recognition and success. By utilizing this framework, organizations can gain valuable insights into their positioning and take actionable steps to further their pursuit of accolades in their respective industries.

As organizations progress through the framework, the maturity of their reward and recognition programs increases, reflecting a higher level of sophistication and effectiveness. It is common for organizations to have implemented certain elements of the framework already, but the challenge lies in identifying how to move both horizontally and vertically within the framework to continuously engage employees and make them feel valued. Horizontally, organizations need to expand their repertoire of rewards and recognition practices, ensuring a diverse range of strategies that cater to different employee preferences and motivations. Vertically, organizations need to elevate the impact and effectiveness of their existing programs, enhancing their ability to drive employee engagement and reinforce a culture of appreciation. By strategically moving both horizontally and vertically within the framework, organizations can ensure that their reward and recognition efforts evolve and remain aligned with the changing needs and expectations of their workforce, resulting in sustained employee engagement and a sense of value within the organization.

Here are some unique examples of appreciation in organizations:

1. Spotify: Spotify has a program called "Spotify Heartbeat" that allows employees to nominate each other for recognition. When someone is nominated, they receive a personalized video message from a senior leader.

2. Zappos: Zappos is known for its culture of appreciation. Employees are encouraged to give each other "Zappos Zs" (a form of currency that can be redeemed for prizes), and there are regular "Zappos Town Hall" meetings where employees are recognized for their work.

3. Netflix: Netflix has a "Netflix Fun Fund" that employees can use to fund their own ideas for team-building activities or social events. This shows that Netflix values employee happiness and is willing to invest in their well-being.

4. Google: Google has a program called "Thank Me Later" that allows employees to send anonymous thank-you notes to each other. This is a great way to show appreciation for someone's work without having to say it to their face.

5. Atlassian: Atlassian has a program called "Atlassian Values Awards" that recognizes employees who exemplify the company's values. This is a great way to show employees that their values are important to the company and that their contributions are valued.

6. SurveyMonkey: SurveyMonkey has a program called "SurveyMonkey Hero's" that recognizes employees who have gone above and beyond. This is a great way to show appreciation for employees who have gone the extra mile.

7. HubSpot: HubSpot has a program called "HubSpot Hall of Fame" that recognizes employees who have made significant contributions to the company. This is a great way to celebrate the achievements of employees and to motivate others to follow suit.

8. LinkedIn: LinkedIn has adopted internal social networking platforms that allow employees to recognize and appreciate their colleagues' contributions publicly. This approach promotes a culture of appreciation and collaboration, where employees can express gratitude for their peers' efforts. Such public recognition not only boosts the morale of the recipient but also creates a positive work environment that enhances employee satisfaction.

These are just a few examples of unique ways that organizations can show appreciation to their employees. By being creative and thoughtful, organizations can create a culture of appreciation that benefits everyone involved.

Here is where things get complex, and this is especially relevant in the current world. Does one size really fit all? A loud No, and that’s where the framework must be married with 2 different axis - type of workforce - blue collar, white collar, knowledge worker, physical labor etc. and the generation of the workforce. If you see the chart below and it's based on some empirical data that people at different life stages and generations do look at things differently. 

1. Gen Z employees, driven by immediate feedback and personalized recognition, appreciate digital platforms and technology-driven approaches that offer real-time feedback and virtual badges. They seek rewards that align with their values, such as initiatives with social or environmental impact. 

2. Millennials value a holistic approach to rewards, including monetary incentives, career advancement opportunities, and work-life balance benefits. They respond positively to regular feedback, mentoring programs, and recognition that promotes their personal and professional growth. 

3. Gen X employees appreciate flexibility and work-life balance, valuing rewards that provide autonomy and allow effective schedule management. They also value recognition that acknowledges their expertise and experience, along with opportunities for professional development. 

4. Baby Boomers tend to appreciate traditional forms of recognition, such as public acknowledgment, awards, and titles that signify their achievements. They may value long-term incentives like retirement plans or healthcare benefits, demonstrating an organization's commitment to their well-being.

So, what does the organization do? Organizations need to find that depending on the demographics what type of appreciation suits who and tailor (yeah, all social channels tailor ads to us) the appreciations to the individual. That's what will work and that's the ONLY path in future. There’s absolutely no ham in asking your employee – “hey, we think you did a great job, and this is what we think is the suitable appreciation for that, but if you like something else, then do let us know!”. 

Over time this data will accentuate to what works or what is valued by the employees and I am sure the results will be surprising for all organizations. 

Future - Impact of AI in rewards and recognition

AI (the future all errand runner) will definitely change the appreciation landscape and help in ushering the extreme customization and delivering it at the right time - as appreciation delayed is appreciation denied. 

Here are a few ways AI can influence this domain:

1. Data-Driven Recognition: AI can analyze vast amounts of data to identify patterns and trends in employee performance, enabling organizations to provide more accurate and data-driven recognition. By leveraging AI algorithms, companies can identify employees who have consistently exceeded expectations or made significant contributions, even in complex or nuanced ways that might be challenging for human evaluation alone.

2. Personalized Rewards: AI can help tailor rewards and recognition programs to individual employees based on their preferences, strengths, and interests. By analyzing data on employees' work history, performance, and personal preferences, AI algorithms can suggest personalized rewards that resonate with each individual. This level of personalization can enhance the impact of rewards and recognition, making them more meaningful and motivating.

3. Real-Time Feedback and Recognition: AI-powered tools can provide real-time feedback and recognition to employees. Chatbots or virtual assistants can be utilized to provide immediate acknowledgment and appreciation for achievements, milestones, or exceptional performance. This instant feedback can boost employee morale and motivation, fostering a culture of continuous improvement.

4. Gamificationand Challenges: AI can be employed to create gamified experiences and challenges as part of rewards and recognition programs. By incorporating AI algorithms, organizations can develop engaging platforms that track employees' progress, provide real-time feedback, and offer rewards for completing tasks or meeting specific targets. Gamification can increase employee engagement and create a sense of healthy competition while driving desired behaviors and outcomes.

5. Bias Mitigation: One of the challenges in traditional rewards and recognition programs is the potential for bias, conscious or unconscious. AI algorithms can help mitigate bias by removing human subjectivity from the process. By analyzing objective performance data, AI systems can identify, and reward achievements based on merit, minimizing the impact of biases related to factors such as gender, ethnicity, or personal relationships.

6. Predictive Analytics: AI can leverage predictive analytics to forecast future performance and potential areas for recognition. By analyzing historical data and patterns, AI algorithms can identify employees who are likely to excel in specific areas and provide early recognition or rewards to encourage continued growth and development.

While AI offers significant potential to enhance rewards and recognition programs, it is crucial to consider ethical implications and ensure transparency and fairness in the implementation. It is essential to strike a balance between AI-driven processes and human involvement, combining the strengths of AI technology with human judgment and empathy.

To conclude, just step back and assess what’s your Appreciation Swag – where are you in the journey, where do you want to be, what are you doing to move towards it and finally - how you measure the impact, which is the key to success. Hope you jump on, use some of the concepts illustrated above and enjoy the ride.