What is Emplyee Recognition Software? Employee recognition software seeks to improve and streamline the processes for acknowledging employee accomplishments and successes. Many organizations understand the value of employee recognition but may use ad hoc processes. These processes can vary wildly across the organization. Additionally, they are typically associated with poor record-keeping. This means that recognition can be lost due to shifts in organizational structure or forgetfulness. ...
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Employee recognition software seeks to improve and streamline the processes for acknowledging employee accomplishments and successes. Many organizations understand the value of employee recognition but may use ad hoc processes. These processes can vary wildly across the organization. Additionally, they are typically associated with poor record-keeping. This means that recognition can be lost due to shifts in organizational structure or forgetfulness. Employee recognition software aims to solve these problems by providing standardized, scalable, and easy-to-implement solutions for your recognition processes.
These improved processes promote employee engagement and increase morale and cultural engagement by enhancing the ease and consistency of rewarding employees. Studies have shown that these morale and engagement increases boost productivity and reduce turnover. Additionally, many products keep records of awards, meaning an employee’s accomplishments are at your fingertips come promotion, raise, or bonus time.
Professional industries where morale and retention are essential are most likely to use employee recognition software. While the exact nature of the software used will determine which of your employees use the software, an HR professional or department will likely administer the program. There are typically three directions for the operation of the software:
The choice of direction influences the nature of the cultural effect, and the factors that influence which is best are unique to each organization.
Employee recognition software generally complements employee engagement software or other solutions to increase employee morale and productivity while reducing turnover. The engagement software typically plays a passive part in these combinations, measuring and analyzing employee sentiment. In contrast, employee recognition software is more active, forming one part of an overall strategy to boost morale.
In many ways, it might seem that performance management could cover the role of employee recognition. The difference is that performance management is significantly less agile. With performance management, goals are set, plans are created, and rewards are based on whether those objectives are met. However, if something happens that is not part of the plan, and an employee does outstanding work, a performance management approach will not recognize this because it wasn’t part of the plan. An employee recognition program likely will. So the question of which to use is a question of anticipated events and desired culture. Do you expect a consistent environment with few unforeseen circumstances and value slow and steady progress towards goals? If so, a performance management system will likely suffice. If you instead expect a rapidly changing environment and value agile thinking and risk-taking, an employee recognition software may be more appropriate.
Most employee recognition software packages will have the following features:
Keep the following factors in mind when purchasing employee recognition software:
Recognition Direction: There are three specific directions for employee recognition software: top-down, peer-to-peer, or 360. Each option provides subtly different effects on company culture. A top-down approach generally emphasizes a more hierarchical structure. Peer-to-peer may encourage more collaboration among colleagues. A complete 360 approach is representative of a more agile culture.
Monetary vs. Non-Monetary Recognition: Everybody loves cold, hard cash (or its close equivalent, gift cards), but the cost can add up quickly. Non-monetary recognition can also effectively increase employee engagement and morale, but without the costs. Consider how employees will react and your bottom line when selecting packages and features.
Reward and Vendor Selection: Certain packages use particular reward systems. The choice of gift type can impact the overall cost of the program. Additionally, rewards systems involving physical items, especially custom company merchandise, may take longer to implement. Additionally, many software vendors partner with other organizations like Amazon Business to provide your rewards. The discount, or lack thereof, that vendor has established with said businesses will significantly impact the overall cost of your recognition program.
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Most products charge on a per user per month basis. Software packages for employee recognition programs typically come in three levels. Base-level packages provide the basic functionality of the package and may be limited in the number of users. Mid-level packages tend to provide extra functionality and a large number of users. Enterprise-level packages typically involve everything in the other packages and additional, and maybe even custom, service from the vendor.
Typical base-level packages are $1.50-$3.50 per month, and Mid-Level packages may range from $2.50-$5 per user per month. Enterprise packages typically require a custom quote. Some vendors offer a free version of the software for small teams or with limited features. This may be ideal for smaller organizations or test pilots with reward programs.
It is important to note that the cost of the employee recognition software is only a small portion of the cost of an employee recognition program. Much of the cost is in the money required to purchase or fund the rewards. Therefore, the rewards vendor’s pricing can be as much of a factor or more than the pricing or utility of the software itself.
