Employee recognition is the most critical element in the role of HR, rewarding employees’ right based on their performance is very important to retain and motivate the talented workforce.

Most employees are eagerly waiting for their efforts to get noticed, and if they are not adequately rewarded then it can turn out to be a disappointing experience. Most employees would choose to believe the fact that company doesn’t value their efforts or care for them.

Offering employee recognition without fracturing your budget is a challenge for many small and big companies alike. While money isn’t all that motivates an employee to perform better, however it does make a difference.

Some of the most expensive rewards may not be the best ones. Here are 8 innovative ways to recognise employees for their efforts – a pretty much affordable solution for many HR managers. Check this out:

1. Passes for the event/show to enjoy some recreation moments with family will definitely boost employee morale. Besides job, there are many other things that provide employees with an instant sense of gratification – such as tickets to movies, a concert, theme park or any other event that you think will interest the family. Tickets or passes to a music concert is one of the great ways to recognise employees for their immense efforts, hard work and contribution to go an extra mile and get the task done in a stipulated time frame.
2. Recognise employees on company social media account and newsletters: Announcing successful accomplishments of an employee on the company’s social media page or in the newsletter is a good way to make them feel valued for their contributions. This also motivates other employees to be aware of an individual’s strengths in the team and passion towards achieving organisation goals. Try to avoid recognitions such as “Employee of the month” or “Best of…”, as such kinds of praises are temporary in nature. Instead, employers should talk honestly about employee’s actions – especially those who work remotely (like jobs involving excess travel or on field) should be recognised for their outstanding efforts.
3. Treat them with lunch. Everybody loves good food, so treat your employees well. Especially when the team strives to achieve targeted goals, treat them for lunch or an evening dinner. During such happy hours, employees can develop relationships outside work to enjoy chatting with colleagues at work. Also organise for catered meals to be brought to office, as this helps in recognising larger groups of people, rather than individual contributors. In case every idea seems passé, then the idea of Donut Fridays with coffee can be an innovative way to help employees unwind over the weekend.
4. Say it like you mean it. There is no better way to inspire employees than by offering your sincere gratitude for their efforts. But don’t give praise just for the sake of giving praise. Your attempts at employee recognition will backfire if an employee doesn’t consider your words heartfelt.
5. Publicize achievements. One of the best ways to recognize employees is to spread the word about noteworthy individual and team accomplishments during meetings or in emails to your entire company.
6. Explain the bigger picture. People tend to work harder when they know that their work matters. To help your staff feel more personally invested in the success of the organization, share information about the business and how standout efforts contribute to the company’s bottom line and overall goals.
7. Organise Pizza Parties. People love to grab some cheesy bites and treat their taste buds after tiring days at work. Some yummy bites would definitely not cost extra calories even on the utmost health conscious staff. Organise pizza parties with good music to create an environment as time off from work.
8. Enable profit-sharing initiatives. If you want employees to strive their best then start including a profit-sharing program that directly rewards employees based on their contributions. So each employee feels a part of their own company and gets over the feeling of working for an employer. Through such means employees are motivated with a personalised touch.

The value of such kinds of employee’s benefit cannot be underestimated. Profit-sharing gives employees a direct stake in the company’s profits and so employees feel the need to succeed as much as the management does.

Employee retention becomes much easier if valuable key talent is recognised and rewarded adequately for their efforts. Recognising employees for stellar performance is vital to maintaining morale and boosting productivity.

Source: RobertHalf.com

Also read: Employee recognition trends to watch out for HRs in 2015