As we close out the first month of a new year, it’s common for company morale to hit some speedbumps. The start of a new year brings its own set of challenges. With recent news about employee layoffs and a looming recession, it’s understandable for employees to feel anxious and concerned, and it’s vitally important for leaders to find ways to boost employee morale. Recognizing and appreciating employees is one of the most effective ways to do so.

Recognition can take many forms, including verbal or written appreciation, bonuses and award programs. In this blog, we’ll take a closer look at the benefits and considerations of employee and team award programs.

Awards in professional environments can generate mixed reviews. Some awards can be effective in improving morale and a sense of teamwork, while others might foster a toxic and overly competitive environment. Below are some of the pros and cons of award programs:

Pros:

• Awards can make the individual or team feel more valued and appreciated.
• Recognition can increase motivation and engagement across the team.
• Company recognition programs can also improve retention if employees feel their contributions are valued and making an impact.

Cons:

• Awards run the risk of seeming insincere or condescending.
• Potential exists to create resentment and unhealthy competition among colleagues and teams.
• It’s possible introduce biases in the award selection process.

It’s important to have a firm understanding of company culture and how teams might react and engage with the award. Crucial to avoiding the cons listed above include having clear objectives for the award and transparent communication about the process, criteria and purpose.

When creating or updating an award program, consider the following best practices:

• Align awards with company goals and values. Prioritize behaviors that align with and reinforce company goals and values. This will help motivate the team and efforts toward a common goal and reinforce that their efforts are valued and make an impact.
• Ensure consistency. For the award to be effective, it needs to be consistent and have a recurring cadence. Share the recognition close to the action the company is recognizing to make it more meaningful.
• Celebrate it publicly within the company! Publicly acknowledging the award during regular team meetings, in an all-company email, or in person can help increase awareness and boost morale.

Awards can be effective in motivating employees and bringing teams together. However, companies should consider the pros and potential cons of employee award programs with their own teams and culture in mind. Clear objectives, consistent communication, and alignment with company goals and values are key to making the awards successful.

Check out the blogs below for more guidance on how to support employee well-being.

• Improving Mental Health Awareness in the Workplace
• Supporting Employee Engagement and Wellbeing
• In Defense of Fun Fun Fun in the Workplace

Do you have team awards in place? What best practices worked for your company?