Employee Holiday Recognition Can Be Worse Than Doing Nothing
Recognizing and rewarding hard work in the construction industry is crucial for maintaining employee morale and productivity.
The employee engagement firm Whistle had a client who faced a significant challenge in its rewards program. In 2023, the client spent $2 million on Starbucks and Grubhub gift cards for employees and subcontractors. However, a detailed analysis by Whistle Rewards revealed a horrifying inefficiency: only $880,000 of these gift cards were ever redeemed.
This meant that $1,120,000 of the firm’s reward budget was essentially wasted. (https://www.wewhistle.com/the-ugly-truth-about-gift-cards/)
Employee Rewards: Frequency matters more
Which is more effective at employee engagement and retention: $25 once a month or three $5 recognitions per month? The surprising answer is three $5 recognitions. Recognitions are not compensation. They are acts of appreciation.
Maintaining a motivated and engaged workforce is critical to success in many industries where projects are fast-paced, labour-intensive, and often high-stakes. Traditionally, companies have relied on large, infrequent rewards—such as annual bonuses or quarterly recognition ceremonies—to show employee appreciation. However, frequent, lower-value rewards are more effective in driving sustained engagement and improving overall performance.
When companies wait to recognize staff, Whistle found they lost 5% of the “reinforcement impact” for each day of delay. For example, if an employee receives a reward two weeks after doing something unique, achieving the same impact as immediate recognition costs twice as much.
Read about Recognition & Corrective Action: How Do You Measure Up?
Frequent rewards also offer practical benefits; for example, when workers feel appreciated regularly, they are more likely to collaborate effectively and go the extra mile to ensure success.
Yet here we are at Christmas when most companies reward employees with dinners, gifts, and parties. If frequency is the long-term solution, how do we address the Holiday Season?
As a leader of people, I know that the holidays can be stressful. You are trying to finish the year strong while juggling time off and family commitments. That’s tough already, plus you also must find time to plan gifts and events to show your staff you appreciate their hard work this year.
If you search online for gift ideas, you might find some helpful guides but minefields of bad ideas. Take this one, for example: Their number one recommendation is a gift card. That is perhaps the worst and most impersonal holiday gift idea.
Many managers take the easy path and buy gift cards from Starbucks, Target, or Amazon. Some may make more effort and purchase gift cards to a local restaurant or shop.
While those are all nice, they don’t show that you know or appreciate your team members. Imagine how it would feel to get a coffee gift card if you don’t drink coffee. Or a Home Depot gift card, and you can barely change a lightbulb. Worse still, getting a gift card to a store with no locations nearby. If the team is virtual, the store might not even operate in their state.
The simple fact is that while a gift card might work for some of your employees, it will only be suitable for some of your team.
This opportunity to show gratitude and cement employee loyalty just became a signal to your team members that you don’t know them very well. They might spend the holiday break updating their resumes.
A better way to show you care is to give a memorable, practical gift that shows you know your team well. This gift should be something they will appreciate and remember long after the holiday break, something that will make their lives better or help them at work, and something unique to them, not just a one-size-fits-all gift.
Here are a few tips and ideas to make this season one that increases employee loyalty rather than erodes it:
1) Host a Holiday Gathering. Don’t underestimate the importance of hosting an end-of-year gathering for your team. A Christmas party is the perfect way to celebrate and acknowledge the year of hard work every employee has put in. It wraps up the year positively and motivates staff to achieve bigger and better achievements for the coming year! Recognition, rewards, and the chance for some fun will build staff engagement and loyalty and create a fantastic work culture.
As much as you want to be all about fun and positivity, there is no denying that work parties can be dangerous territory. The mixture of alcohol and the chance to drop some of those rigid office personas may come with some unwanted side effects. Before any festivities, make it clear to your team that the same standards of behaviour are expected at office functions as within the workplace.
Parties are not for everyone, so ensure there are no intended or unintended repercussions for not attending. And if any gifts or recognition are included in the event’s agenda, those not in attendance will be equally recognized at the first appropriate opportunity.
2) Try a virtual scavenger hunt. With virtual teams becoming the new norm, it is time to rethink the holiday party. One great way to show appreciation is to have a virtual scavenger hunt. The winners can be determined by who collects the most items before time runs out. Reward the winners, but make sure everyone gets something, even if they don’t answer all the questions correctly.
3) give people cash. While giving cash may feel impersonal, it can be done personally. Write each employee a note and tell them why you appreciate them. Be as specific as possible. Remind them of a great project they completed this year, or tell them about something you are excited to collaborate with them on next year.
4) Give the gift of time off. This is one of the best ways to show you care. Let your team know you appreciate all their hard work this year by giving them an extra day (or two) off. If you can’t swing an additional day, give them a half-day. Time is the one commodity we can never get more of, so this is always a cherished gift.
5) Give them a new skill. Everyone wants to improve at something. Maybe it’s related to their day job, but it’s even better if it is not. Maybe your employee wants to learn to code, speak French, be a podcaster, or play the piano. Please give them a subscription to Masterclass or Duolingo. Even better, give them paid time to use those subscriptions. Insecure employers might worry that training their employees will lead them to leave the company.
Read About The 7 Hidden Reasons Your Employees Leave You
Step up your game this holiday season and show your staff appreciation.
