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Does healthcare employee engagement matter when it comes to patient care? Well, let’s look at just one of many statistics: 58% of highly engaged employees were in the top quartile of patient safety culture scores. And there’s a 47+ point difference (yes, 47!) in the quality of patient care provided between an engaged worker and a disengaged one. Here’s a graph that visually represents that data: 

Employee engagement undeniably matters across all industries, and healthcare is no exception. In fact, it’s where the consequences of disengagement can be most severe. Disengaged healthcare employees may not follow procedures accurately and might cut corners to simply "get the job done." 

The medical industry is notorious for its staff shortages, long hours, and high stress. This environment contributes to disengagement, which can lead to mistakes, particularly when employees are distracted or overworked. However, healthcare is an industry where such errors can have life-altering consequences. Disengaged staff who neglect safety protocols or fail to follow proper procedures may inadvertently harm patients.

Today, we’ll explore why employee engagement in healthcare matters, its benefits, what causes disengagement, and most importantly, how you can address it effectively in your workplace. Let’s dive into why engagement is crucial for healthcare.

Why Employee Engagement Matters in Healthcare 

A recent meta-analysis of 11 comprehensive studies found a strong positive relationship between employee engagement and patient safety. Engaged employees contribute to safer workplaces, reducing errors and adverse events. 

For instance:

• Harvard Business Review found that even a 1% increase in employee engagement led to a 3% reduction in hospital complications and a 7% reduction in readmissions.

• A Gallup poll of 200 hospitals revealed that higher engagement among nurses correlated with lower patient mortality rates.

Beyond hospitals, a SHRM report noted that companies investing in employee recognition programs saw a 63% boost in productivity and a 51% increase in retention.

These studies underscore that investing in employee engagement yields measurable benefits. But before exploring solutions, let’s first identify the causes of disengagement in healthcare settings.

Sometimes, the solution isn’t to start doing something but to stop doing something else. 

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What Causes Disengagement Among Healthcare Workers?

There are four primary factors contributing to disengagement among healthcare workers: 

1. Administrative Overload. If your nurse has to spend more time filling out paperwork than taking care of the patient, then you know you have a problem. These employees are caregivers, not clerks, yet many are bogged down by administrative tasks. 

2. Long Hours. Healthcare is generally understaffed; there are always open positions that can’t be filled because of the lack of qualified people. Staffing shortages mean healthcare workers often work extended hours, leading to exhaustion and disengagement. Over time, this becomes the norm, further compounding the issue.‍

3. Stressful Environment. No matter how you turn it, healthcare workers have a stressful job. It wasn’t just during the pandemic, where they were exposing themselves to a deadly virus; it’s their day-to-day to be in situations where their actions can mean the difference between life and death. This constant pressure, compounded by exposure to challenging situations, erodes focus and morale.

4. Poor Communication. Lack of public recognition and ineffective communication between all levels of management can foster massive disengagement with healthcare staff. The upper levels need to know what’s happening at the ground level and be involved so that they can properly recognize those who went above and beyond to ensure patients get the best care. Unfortunately, leadership often fails to stay informed about ground-level challenges, leading to a disconnect.

Disengagement doesn’t just affect morale—it’s expensive. Hospitals with disengaged nurses pay around $1 million more annually in malpractice costs than those with engaged nurses. 

And the issue of disengagement often stems from larger systemic challenges. For example, hospital staff are frequently overworked and burned out, a situation that has only worsened post-COVID-19. A 2020 survey from Mental Health America found that 93% of healthcare workers were experiencing stress, and 76% reported exhaustion and burnout. It’s no wonder many wanted to leave the healthcare industry.

Addressing these underlying causes can go a long way in improving both engagement and financial outcomes.

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5 Benefits of Investing in Employee Engagement of Healthcare Workers

There are five big benefits of investing in employee engagement of healthcare workers: 

1. Improved Patient Care: The more engaged your workers are, the better they will take care of the patients in your hospital or clinic. The right order of good service is “treat your staff well and they will treat your customers well.” This is true in any industry and healthcare is no exception. 

2. Increased Safety: Mistakes in healthcare are costly, both financially and in human lives. Your patients' health is at stake and if your employees don’t follow all the safety procedures, they could endanger the patients' lives, especially in critical situations. Engaged employees are more likely to follow safety protocols, reducing risks.

3. Cost Savings: It’s cheaper to invest in your employees and ensure they’re engaged at work than it is to lose them and have to hire a new person. So if you’re looking to save money for your company, you should invest more in your employees and they will repay it by engaging more at work, providing better results, staying longer and increasing overall productivity. ‍

4. Higher Retention Rates: Finding specialized and qualified healthcare staff is quite difficult in today’s economy. There’s a massive need for healthcare workers and companies, clinics, and hospitals are struggling to fill the open spots. However, if you invest in employee engagement programs, you can improve the retention of your doctors, nurses, and other specialized staff, ensuring continuity and quality in patient care.  

5. Reduced Absenteeism: Last but not least is the reduced absenteeism benefit. The more engaged the employee is, the less likely they'll be to call in sick. So investing in your employees results in better staffing and less strain on their colleagues. 

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7 Strategies to Improve Employee Engagement in Healthcare

Now that we have covered why engagement matters, what’s causing disengagement at work, and all the benefits of having an engaged workforce, let’s take a look at ways you can improve employee engagement in healthcare.  

1. Use Recognition Models:

Did you know that companies with a robust employee recognition program see a 12% increase in engagement and a 14% boost in performance (Gallup)? The more you invest in your recognition program, the more it will benefit your entire workplace. 

Rewarding and recognizing employees’ efforts fosters a culture of appreciation and boosts morale. Tailor recognition to individual accomplishments—whether small, such as completing a difficult shift, or large, like achieving a milestone in patient care.

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2. KISS (Keep It Simple, Stupid):

The rule KISS stands for: Keep It Simple, Stupid. This is a fundamental rule when it comes to healthcare workers and it can be applied to all the processes that you have in the workplace. 

For example, if you’re creating a communication system between different departments or roles (nurses to doctors to administrators), then you must simplify communication and processes to reduce errors. Otherwise, information will be lost in all the complexity and the patients will suffer. 

Here's an anecdote: one hospital administrator shared a story about a new overly complicated workflow for submitting leave requests that resulted in a staff member inadvertently scheduling their vacation during their colleague’s already approved time off. The chaos was resolved only after simplifying the process, underscoring how avoiding unnecessary complexity in workflows helps keep staff focused on what they do best—caring for patients.

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3. Prioritize Employee Wellness:

If you want to retain your staff and ensure that they don’t burnout and start making (costly) mistakes at work, wellness initiatives—from manageable workloads to mental health support—are key. This isn’t just about having spa days for your employees; this is about preventing burnout by avoiding overwork and ensuring employees can perform at their best.

Provide access to counseling services, encourage regular breaks, and promote physical activities to maintain overall well-being.

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4. Invest in Leadership Development

Strong leadership is vital in high-stress environments. Managers in the healthcare industry are expected to demonstrate good communication skills, provide constructive feedback, stay organized, work under pressure, be solution-oriented and reliable. Not just the manager, but main shift nurses and other staff should be trained to excel in communication, decision-making, and stress management.

Investing in leadership development and soft skills for all of your healthcare managerial positions can help alleviate the stress and pressure from their demanding job and foster an inclusive work culture that supports growth.

5. Maintain High Hiring Standards— Accountability:

Although you should fill your open roles in the company, you need to ensure new hires meet the role’s demands. You can’t risk hiring someone who isn’t up-to-par and expect them to contribute equally as other employees if they’re not suited for the role. Skilled, well-suited employees contribute positively to the team and reduce turnover.

Having diversity in the workplace is great but you should evaluate candidates not only for their qualifications but also for their compatibility with the organizational culture.

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6. Reward Employees:

Healthcare workers love helping people; it’s one of the main reasons why they choose to become healthcare workers. It’s intrinsically satisfying to help someone out, especially when they’re hurting and in pain. 

However, beyond intrinsic satisfaction, healthcare workers need recognition from employers. You, as the employer, should create a robust reward and recognition program for all of your healthcare workers to show appreciation for their contributions. Ensure that they get the recognition they deserve from all stakeholders in the process. Bonuses, extra time off, and public acknowledgment of achievements can go a long way in motivating staff.

7. Create a Culture of Feedback 

Last but not least is to encourage open communication. No matter how good your system is, there is always room for improvement. And that improvement only comes if people are secure enough to voice their problems and provide ideas as solutions for those problems. 

This is why creating a culture of feedback is so important. Employees often have valuable insights and solutions—listen to them. All of your healthcare workers, no matter how many of them are employed in the company, should feel accountable and responsible for the system. Use tools like pulse surveys to identify and address issues promptly. Employees are best-positioned to provide the ideas and solutions that would fix the problems they face on a daily basis. 

Act on their feedback to build trust and demonstrate that their opinions matter. For instance, one healthcare manager discovered through a survey that the night shift team felt isolated and overlooked. By acting on this feedback—organizing regular check-ins and ensuring leadership visibility during night shifts—trust was rebuilt.

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Conclusion

Employee engagement in healthcare is as crutial as it is in any other industry, if not more so. During the pandemic, many health workers were stressed out. Factors like excessive administrative tasks, long hours, and poor communication, can have devastating consequences in workplaces.

However, by addressing these challenges and implementing strategies like recognition programs, leadership development, wellness initiatives, and fostering a culture of feedback, healthcare organizations can transform their work environments. Investing in employee engagement is a win-win; it reduces turnover, lower costs, improves patient care and safety, and fosters a thriving, motivated workforce.

With employee engagement, you ensure that your employees stay healthy and well, that they bring 100% of themselves to their jobs, and that they focus on the tasks in front of them. Investing in your employees benefits everyone—the workforce, the organization, and most importantly, the patients.

If you’re still unsure about the first step toward improving employee engagement, read our guide on “Launching Your First Employee Recognition Program”. We'll help you tailor your engagement initiatives to meet your team’s needs so you can watch the transformation unfold.

Did you know that disengaged employees cost the U.S. economy a staggering $1.9 trillion every year? And the problem isn't limited to a small subset of workers. According to a recent Gallup study, 67% of employees are either not engaged or actively disengaged at work. This has a profound impact on companies, leading to reduced productivity, higher turnover rates, and ultimately, a weaker bottom line. Imagine one employee who’s fully committed, another who’s indifferent, and a third actively working against your company’s goals—it's no wonder businesses are feeling the pinch.

So, how can you change this in your organization?

The key lies in the principle: “What you measure, you improve.” That’s where an employee incentive program comes in. The right incentive program can transform your employees into motivated, engaged contributors. In this guide, we’ll explore some of the most effective employee incentive program ideas, their benefits, and how to implement them successfully. But first, let’s break down what exactly an employee incentive program is.

What is an Employee Incentive Program?

Incentives are designed to motivate individuals to take certain actions—or avoid others. Think of it as the classic “carrot and stick” approach. Incentives can be intrinsic, driven by internal satisfaction like a sense of achievement, personal growth, or excellence, or extrinsic, driven by tangible rewards like promotions, bonuses, or public recognition.

An employee incentive program is a structured approach that leverages both intrinsic and extrinsic motivators to encourage desired behaviors, drive engagement, and foster loyalty. These programs can include anything from financial rewards to career development opportunities, creating a win-win for both the company and its employees.

Why Employee Incentive Programs Matter

With a competitive job market, it’s more important than ever to attract, engage, and retain top talent. An effective incentive program can make your company stand out. By rewarding employees for their hard work and dedication, you not only boost morale but also create a culture of appreciation and recognition.

Benefits of an Employee Incentive Program

There are numerous advantages to having an incentive program, but here are four of the most impactful:

1. Boosted Morale: Employees appreciate working in a place that invests in them. An incentive program helps you clearly communicate the behaviors you value and reward them accordingly. It also helps employees understand which behaviors to avoid, creating a positive workplace culture.‍
2. Healthy Competition: A bit of competition among employees can be beneficial. When they compete for rewards, everyone wins because the workplace becomes more dynamic and engaged, which ultimately benefits your bottom line.‍
3. Increased Loyalty: By investing in your employees through incentive programs, you show them that they’re valued. Not all companies do this, so your employees are likely to stay longer, appreciating the extra effort you put into their development.‍
4. Enhanced Productivity: Engaged employees are 22% more productive than their disengaged counterparts. This makes investing in incentive programs a smart move for any business.

Common Pitfalls to Avoid When Creating an Incentive Program

While implementing an incentive program can be highly beneficial, it’s important to avoid these common mistakes:

• Lack of Inclusivity: Ensure that your incentive program is inclusive and accessible to all employees. The last thing you want is to create a program that leaves certain groups out. For example, if your rewards are solely focused on sales targets, employees in non-sales roles may feel left out. Instead, consider a diverse range of incentives that cater to different departments and job functions. Inclusivity also extends to different generations within the workforce. For instance, Millennials and Gen Z may value professional development opportunities, while Baby Boomers might prefer traditional monetary bonuses. Tailoring your incentive program to accommodate various preferences can enhance its effectiveness.

• Poor Communication and Awareness: It’s not enough to simply have an incentive program in place; your employees need to know about it. If employees aren’t aware of the rewards available to them, they won’t be motivated to work towards them. Ensure that you market the program effectively—use email newsletters, posters in communal areas, and even dedicated meetings to highlight what’s on offer. Transparency is key. Employees should clearly understand the criteria for earning rewards and how the program aligns with company goals.

• Lead by Example: An incentive program is only as strong as the support it receives from the top. If leadership doesn’t actively participate and endorse the program, employees are less likely to take it seriously. Leaders should model the behaviors they wish to see and openly acknowledge the program’s benefits. For example, if a wellness initiative is part of your incentive program, encourage leaders to participate in wellness challenges or activities to set a positive example.

• Mismatch Between Effort and Reward: Ensure the rewards you offer are meaningful to your employees and align with the effort required to achieve them. Employees should feel that the rewards are worth the effort. If they perceive the rewards as trivial or unattainable, the program can backfire, leading to frustration rather than motivation. Consider conducting a survey to gauge what types of rewards your employees value most. This ensures your program resonates with your team and drives the desired behaviors.

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Employee Incentive Program Ideas

Ready to design your own incentive program? Here’s a comprehensive list of ideas you can use to create a program that suits your company’s needs:

1. Referral Programs:

One of the most effective ways to attract top talent is through employee referrals. A referral program not only rewards the referring employee but also brings in candidates who are 30% more likely to be a cultural fit, 58% more likely to remain at a company for at least three years, and has a 20% higher job performance rating after two years. You can offer tiered rewards, where employees earn bonuses or extra perks based on the longevity and performance of the referred hire.

2. Professional Development:

Investing in your employees’ growth is a win-win. Offering access to coaching and mentoring, courses, workshops, certifications, and conferences can not only enhance skills but also increase job satisfaction. Professional development incentives show your team that you’re invested in their long-term success.

3. Personal Development:

While professional growth is important, don’t overlook personal development. Programs focusing on wellness, emotional intelligence, or leadership skills can make a huge difference in employee satisfaction. For example, offering mindfulness classes, yoga sessions, or resilience training can improve overall well-being and reduce stress.

Additionally, consider perks like flexible work arrangements, which have been shown to significantly improve work-life balance and employee retention. It also serves great as a talent attraction method, showing candidates that you invest in their overall well-being.

4. Profit Sharing:

When employees have a stake in the company, they’re more likely to be motivated to contribute to its success. Profit-sharing programs allow employees to earn a share of the company’s profits, fostering a sense of ownership and loyalty. This is especially effective for small to medium-sized enterprises looking to build a committed team.

Stock options can also be a powerful long-term incentive, aligning employee goals with the company’s growth.

5. Commission Sharing:

Commissions are bonuses that employees get according to their performance on the job. Traditionally reserved for sales teams (which have a direct connection to selling products and services), commission-based incentives can be extended to other departments to drive performance across the board.

For example, you could implement commission-based incentives for customer support teams based on client satisfaction scores or for marketing teams based on lead generation metrics.

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6. Health and Wellness Benefits:

Given the high levels of burnout in today’s workforce, health and wellness perks are more important than ever. Offer wellness programs that go beyond the standard gym membership. Consider wellness days, mental health resources, on-site fitness classes, or even spa vouchers.

Additionally, creating an employee assistance program (EAP) can provide support for mental health, financial planning, and other life challenges, demonstrating a holistic approach to employee well-being.

7. Student Loan Reimbursement:

‍Around 30% of employees in the U.S. have a student loan so having an incentive program where you’ll help your employees pay it off is a good idea. Offering a student loan reimbursement program can be a highly attractive benefit and significant motivator. Not only does it alleviate financial stress, but it also helps you stand out as an employer of choice for younger talent.

8. Bonuses:

With the rising costs of living and the economic uncertainty, cash incentives are always appreciated in an employee incentive program. Whether it’s a year-end bonus, quarterly performance bonus, or spot bonuses for exceptional work, financial rewards can drive significant engagement

Make sure to personalize these rewards by acknowledging the recipient’s specific contributions.

9. Gifts:

Gifts aren’t just reserved for Christmas time; you can have gifts as awards in your employee incentive program. While monetary rewards are impactful, thoughtful gifts can have a personal touch that makes employees feel genuinely appreciated. With gifts, you’re free to create a tier system and give gifts that range from small tokens of gratitude to more significant rewards for major accomplishments and milestones.

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10. Travel Miles/Coupons:

A really good employee incentive program idea is to provide travel miles and coupons for your employees. Employees, especially younger ones, love to travel and appreciate opportunities to explore new places. Travel-related incentives are especially popular If your company has a remote or hybrid work policy where employees might be traveling for leisure or combining work with travel. You could also consider a program where you fly your employees to different offices that you have around the state, country or even globally, for a change of scenery. 

11. Additional PTO (Personal Time Off):

Extra personal time off can be a highly valued reward to have in your employee incentive program, especially for employees with busy personal lives. People have different travel plans, weddings, and vacations planned, and having an additional day or two off might make a world difference for them. Offering additional PTO can improve morale, reduce burnout, and help employees return to work feeling refreshed.

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12. Volunteering Opportunities:

Create your own projects in the community and have your employees volunteer in them, or support a set of voluntary community projects that your employees can apply to. Voluntary projects can be an amazing benefit that provides your employees with opportunities to develop new skills and expand their knowledge while at the same time contributing positively to society (local or global). This type of incentive appeals to employees who value purpose-driven work and want to make a positive impact.

‍13. Team Building Activities:

When creating employee incentive program ideas, don’t just focus on individual awards; also think about incentives that focus on team collaboration to foster camaraderie, trust, and a sense of belonging. Team building experiences can be some of the activities that you can have in your incentive program to encourage healthy competition between teams and strengthen working relationships while providing a fun and engaging reward. From laser tag to bowling to rafting; these are just some of the group activities that can be planned as team-building experiences. 

14. Food Stipend:

Considering the rising cost of food in the past two years, providing a food stipend to your employees might be a much-appreciated employee incentive program idea. Providing a food stipend is a simple yet effective way to show appreciation and ensure employees feel cared for, especially in workplaces where employees spend long hours or work through meals. On top of that, you can even compile a list of foods that your employees bought and create interesting “Guess who’s the biggest X food lover in the office?” games. 

15. Childcare Benefits:

Providing any kind of childcare benefit to your employees can really be a great motivator to employees, especially young parents. Think about all different kinds of families when implementing this benefit to your incentive program, from those who just became parents, to those who are in the process of adopting (or have recently adopted), to those who are working parents for ages, and even pet care perks for “fur parents.” Providing childcare benefits not only eases financial stress but also supports employees in balancing their professional and personal lives.

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Conclusion

We hope these ideas inspire you to create an effective employee incentive program. Each of these incentives not only motivates employees but also strengthens their connection to the company, fostering a more engaged and productive workforce. Remember, the key is to tailor the benefits to your team’s needs and preferences to maximize engagement and satisfaction.

Need help setting up your incentive program? Contact us for a demo, and let’s collaborate to build a program that fosters a positive, competitive, and rewarding workplace culture.

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Related Articles: ‍

• Achieve goals with incentive driven campaigns

• Create engaging incentive campaigns with Qarrot

• 6 Proven Employee Engagement Ideas for Manufacturing Employees

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The holiday season is coming and with it, the party season opens up. Whether you're gearing up for a festive Christmas gathering or ringing in the New Year, a well-planned holiday party can leave a lasting impression and be a highlight that employees talk about for months

So, how do you ensure your holiday party is one to remember?

This guide will walk you through key steps and offer 27 creative ideas to help you choose the perfect holiday party that fits your company culture.

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3 Key Steps To Prepare For Your Holiday Party

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Holiday parties aren’t a cookie-cutter thing; you'll need to consider your company's unique culture when planning an employee holiday party. A quirky, themed event might be perfect for a young, innovative tech startup in San Francisco but it may not resonate with a traditional company in the Midwest whose employees may prefer a more traditional, cozy gathering. It’s important to tailor your party to your organization’s vibe.

Culture matters heavily, so make sure that your holiday party idea aligns with that. If you’re stuck figuring out which idea works best for your company culture, look at your brand. With it, you can see how your company presents itself to the world and what kind of people it attracts. This will tell you how to proceed. 

For example, the clothing company Patagonia is all about environmentalism and saving the planet Earth. So a party idea that would go against that or create unnecessary trash isn’t the best one. 

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To ensure your party idea is a hit, here are three critical steps to get you started:

• Plan early. Don’t wait until the last minute! Starting early ensures that all details are well thought out and executed smoothly. A hastily thrown-together event is noticeable, and it’s much easier to avoid last-minute stress by giving yourself plenty of time to plan.

• Get the budget. Once the plan for the holiday party is ready, you need to get budget approval. It doesn’t matter how cost-effective your holiday party idea is, you still need some funds. Get this squared away early so you can plan within your means, knowing what kind of party is feasible.

• Prepare logistics. The plan’s set. The budget’s there. Now, it’s time to prepare all the logistics so that the party really shines. If you’re having a wine-tasting night, book a sommelier well in advance. If it’s a game night, make sure all games and supplies are ready to go. Proper logistics are essential for a smooth, enjoyable event.

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Now that the prep work is done, it’s time to dive into some fun and festive ideas!

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The Ultimate Employee Holiday Party Ideas

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Remember that the most important thing is for all the employees at the party to have a good time. To ensure that they look forward to this enjoyable time, we drafted the following 27 ideas for you to pick from. Whether your team loves games, food, or a more laid-back atmosphere, you’re sure to find something that fits your team.

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1. Christmas Karaoke

A karaoke night can be such a crowd-pleaser. Rent a machine earlier or set up a do-it-yourself karaoke using office technology, load up a mix of holiday hits and classic songs, and encourage employees to belt out their favorite tunes. To keep things fair, just make sure that you limit people to only one song at a time to avoid anyone hogging the mic.

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2. Cookie Decoration Night

Bring out everyone’s creative side with a cookie decorating event. The best thing about cookie decoration is that no matter what mistakes you make decorating, you can still “eat your mistakes.” Set up stations with cookies, icing, sprinkles, and other fun toppings. Make sure that you prepare enough open space in advance so that everyone can participate in the activity. In the end, you can have people present their cookies and even give an award!

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3. Movie night

Prepare a projector, set up chairs, get plenty of popcorn, put an awesome movie in, and enjoy your time with a holiday party movie night. The one thing you can do beforehand is set a poll with a couple of movies and let employees vote in advance. This will ensure you play a crowd pleaser of a movie.

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4. Virtual Holiday Party

Remote companies require remote solutions. With a virtual holiday party, you’re connecting everyone to a single video chat and having a blast. Keep the energy high with activities like virtual Christmas tree decorating, sharing festive recipes, or a quick game of holiday-themed trivia so that people can stay engaged while they’re on the call. 

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5. Virtual Party Trivia Quiz

A virtual party can really benefit from a trivia quiz. Prepare the questions, topics (like holiday traditions, company history, or fun facts about employees), and themes ahead of time, explain the rules to the employees, and let them know what the reward for winning the quiz is. This will create a healthy competitive atmosphere and will lead to a great night. 

6. Casino Night

Having a casino night party can be something small, like having one table for card games such as Blackjack or Texas Holdem. Or you can create a casino feel, with roulette games, card games, and even find machine slots so that people can truly feel immersed in the casino feel. If you’re going for the second option, make sure that you plan the logistics correctly. If you don’t have one large space where you can put everything, you can have one game per room and get a similar feeling. For a true casino atmosphere, you can get card dealers that would dress up like it’s a real casino and add to the excitement with prizes for those with the most “winnings.”

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7. Christmas Around The World

Explore holiday traditions from different cultures by hosting a “Christmas Around the World” theme. Some cultures have bonfires, others swim in cold water, and some write real letters to Santa. You could decorate rooms to represent various countries, like a German Christmas market or a Swedish Saint Lucia’s Day. Consider incorporating traditional foods, music, and even games from each culture.

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8. Themed Game Show

There are so many different game shows that you can use to create a really great holiday party. Try recreating a popular game show like Family Feud, Jeopardy, or The Price is Right with holiday twists. You can even create your own variation if you’re not satisfied with how regular game shows function. The most important thing is to pick the right themes and topics for your people. Craft questions or themes around the season, your industry, or your employees for an extra personal touch. Make sure that the themes match the interests of the employees and you’ll have a great night.

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9. Santa Claus And Krampus Party

You can use the Santa Claus and Krampus Party in multiple variations. You can have someone play Santa, handing out small gifts or holiday “tasks", and another person plays Krampus and gives humorous “punishments” to the naughty. This is a fun way to bring some holiday spirit while getting everyone laughing.

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10. Costume Party

A costume party can be a great way for people to unite around a common theme, let loose and show their creativity. You can spin a costume party any way you like, going from decade parties (20s, 80s, 00s), characters from a popular TV show or a movie (Harry Potter, Lord of The Rings, The Office, etc.), or let everyone choose their favorite holiday-inspired look.

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11. Murder Mystery

There’s been a murder and your employees need to solve it! You don’t need to have the game Cluedo to do a murder mystery, you can find plenty of free or inexpensive murder mystery scenarios online. People love murder mysteries because they’re engaging, last for enough time, and really push people to become true detectives. 

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12. Ugly Sweater 

Everyone has an ugly Christmas sweater hanging at the back of the closet. And that’s the point. Encourage employees to wear their tackiest, most outrageous holiday sweaters and let them compete for titles like “Most Creative” or “Ugliest Sweater.” The best thing about the Ugly Sweater party is that the clothes usually have a story behind them so it really gets interesting when people start sharing the story behind the sweater. 

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13. Bingo Night

Bingo is all about playing games and winning rewards. A bingo night can really be a fun activity for your office holiday party. Have someone charismatic host the event and include fun prizes for the winners. Customize the bingo cards with holiday images or office-related themes for an extra festive touch.

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14. Photo Booth

Photo booths are, in general, really fun by themselves. When you set one up as an employee holiday party, make sure that the booth is in a visible place so that people can take pictures. Also, you can put fun requisites next to the booth so that people use them while taking pictures. Oversized glasses, a monocle, reindeer antlers, or a Santa hat are all fun stuff to have on photo booth pictures. Employees can take pictures with coworkers to create memories they can keep and share on social media.

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15. Secret Santa

Secret Santa as a party requires a bit more logistical preparation. You need to ensure that everyone has their Secret Santa (both giving and receiving gifts), that you limit the budget to something reasonable, and that everyone follows through by coming to the party. Encourage creative or humorous gifts to keep the energy light-hearted.

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16. Tree Decorating Party

A tree decorating party can be an amazing employee holiday office idea. If you have a bigger office, you can even have multiple trees and have different teams compete against each other for the best-dressed tree in the office. Just make sure that you provide ornaments, lights, and other decorations.

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17. Gingerbread House Competition

People love making gingerbread houses. Some make them for eating, but the biggest fun lies in decorating your gingerbread house and then showing it off. You can announce a competition early on, divide employees into teams, provide supplies, and let the creativity flow as they build and decorate gingerbread houses. Offer prizes for categories like “Most Creative” or “Best Theme.”

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18. Escape Room

An escape room functions similarly to a murder mystery. You have a bunch of people who have a highly engaging task in front of them that they need to solve. This can be done at an actual escape room venue, or you can create a DIY version in the office. You can create different types of rooms that require employees work together to solve puzzles and “escape” from a locked room. Depending on your employees, you’ll see if it makes sense to have escape rooms that last for 20 minutes or those that last two hours. Whatever you choose, just remember that it’s not about “escaping the room” but about having fun. 

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19. Christmas Potluck

A Christmas Potluck requires a bit more logistical coordination from your side. Assign dishes or categories (appetizers, main dishes, desserts) and let everyone bring their favorite holiday recipes. Christmas potlucks are a great way to share cultural traditions and try new dishes, and employees can showcase their cooking skills to their colleagues.

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20. Interactive Cooking Class

You don’t just have to cook the stuff you know for Christmas; you can learn how to cook a new dish! Host a virtual or in-person cooking class where a professional chef guides employees through a holiday recipe. With an interactive cooking class, you can follow along with a professional and create your dish with their instructions and guidance. This can be a fun way for everyone to learn something new and end up with a delicious meal or treat, especially if you’re a remote company.

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21. Wine and Cheese tasting

One more employee holiday party idea that can work both onsite and online and that adds a touch of sophistication to the celebration. When doing the activity in person, hire a sommelier to guide employees through different pairings. When doing it remotely, you have a bit more logistics to take care of if you send a tasting package to each participant, but it’s still a fun night for cheese-and-wine lovers. 

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22. Cocktail party

A cocktail party can be a festive way to unwind and mingle, especially if you have the budget to get a bartender to mix drinks for you and your colleagues. A cocktail party can really be great because you can do it with almost no budget and set up a DIY cocktail station where employees can make holiday-themed drinks.

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23. Scavenger Hunt

A scavenger hunt can really be a great employee holiday party idea because it’s so engaging. Organize a scavenger hunt with holiday-themed items hidden around the office or virtually for remote teams. Divide employees into teams and give them clues to find the items. Add some prizes for the winning team to make it competitive and engaging.

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24. Ice skating/Hockey

Embrace winter by organizing an ice-skating outing or a friendly hockey match. Employees can bond over shared laughs (and falls!), and it’s a great way to get everyone out of the office. Depending on your organization’s size and demographics, you can even create a tournament and give a reward to the team that wins it all.

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25. Bowling

If ice sports aren’t available in your local area, you can still have a great team-building activity by booking a few lanes and bringing people together to the bowling center. It’s a fun activity where employees can unwind and socialize in a casual setting, and the risk of injury is far lower than on ice!

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26. Paint night

A paint night can be combined with wine for a paint-and-sip event, where employees can enjoy a relaxing evening creating art. Get out the canvases and have people paint their pictures. You can use different ideas for a paint night: guide people through a holiday-themed painting, let them create something from their imagination or from a real model that they should paint as close to reality as possible.

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27. Masquerade Ball 

Last but not least is the masquerade ball. You can have different styles of masquerade ball, going from full costumes to black tie suits with only a face mask for people. Whatever you choose, just make sure that you inform people in advance so that they can prepare their clothes in time and dress appropriately for the party. This is a great way to end the year in style.

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In conclusion

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We have presented you with 27 employee holiday party ideas that will help you pinpoint the right one for your team and host an unforgettable holiday celebration that brings everyone together for a great time. Whichever you choose, make sure that you prepare the plan, the budget, and the logistics ahead of time so that there are no surprises on that night. By picking the right theme and creating an inclusive, festive atmosphere, your party can be the highlight of the year!

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And if you’re preparing Christmas gifts for your employees, make sure that you read our 15 Best Christmas Gift Ideas for Employees: From Unique to Practical to get some really cool ideas. 

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Investing in employee wellness can significantly boost workforce productivity and efficiency. According to data from Growth Market Reports, the global workplace wellness market was valued at $50.2 billion in 2022, with projections to reach $80.1 billion by 2031. More businesses are prioritizing workforce health to help improve business operations and output. Workplace wellness benefits take various forms, from fitness classes and digital workplace offerings to health coverage that ensures healthcare remains accessible to employees.

One often overlooked yet highly impactful element of workplace wellness is employee recognition programs. By acknowledging employee contributions, organizations can foster a sense of appreciation that directly impacts health, well-being, and job satisfaction, all while boosting performance.

As workplaces become increasingly digital and remote, organizations are adopting wellness programs to meet different employee needs. These programs often include employee recognition initiatives that promote a supportive, collaborative culture, which is key to reducing stress and improving both mental and physical well-being. In this post, we’ll discuss how employers can equip their workforce with the right wellness tools for health and well-being in the areas of vision, stress, and movement, while integrating the benefits of employee recognition programs.

Vision

While 88% of employers offer vision benefits, only a little over a quarter of employees fully utilize them. The key is to encourage employees to take advantage of these resources, especially since about half of employees report experiencing vision problems. Research indicates that untreated vision issues can negatively affect performance, but when employers offer comprehensive vision care, they help reduce overall healthcare costs by addressing problems early on.

Digital work environments often lead to extended screen time, increasing the risk of eye strain and other related issues. Employers can provide access to blue light glasses or cover their cost, helping employees reduce exposure to harmful blue light. Researchers suggest that eyeglasses with amber lenses can help filter out blue light and protect the retinas, limiting blue light exposure. Blue light glasses do not fully eliminate blue light since the sun naturally produces that, and you still need its benefits. Instead, the lenses block out the high energy short wave between 415 and 455 nm, which is what causes the most damage to the eyes. At the same time, companies can promote mindful working habits, such as encouraging regular breaks to rest the eyes.

Recognition programs can play a key role in reinforcing the importance of utilizing these vision benefits. By incorporating vision care into employee wellness incentives, companies can increase engagement with these programs. For example, using a platform like Qarrot, employers can track and reward employee participation in vision programs, which not only boosts morale but also helps ensure long-term eye health and productivity.

Stress

Mental health is increasingly recognized as essential to workforce productivity. According to the International Journal of Environmental Research and Public Health, positive mental health is linked to higher levels of innovation and work engagement. Employee recognition programs are powerful tools in mitigating stress, particularly by addressing feelings of underappreciation, which are often tied to job dissatisfaction and burnout.

By celebrating milestones and acknowledging contributions through tools like Qarrot’s Peer Recognition feature, employees feel more valued and supported, creating a positive work environment that helps reduce stress. This recognition fosters emotional support among peers, strengthening relationships and reinforcing the importance of well-being.

In addition to recognition, employers can adopt wellness initiatives that prevent burnout, such as sending break reminders and using time-tracking apps to ensure employees aren’t overworked. Recognizing employees for maintaining work-life balance, or even offering rewards for participation in mental wellness activities, is an effective way to promote stress management and well-being.

Movement

Maintaining physical activity in a largely sedentary work environment is crucial for employee health. Long hours spent sitting can lead to various health issues, including muscle aches, fatigue, and more serious conditions like heart disease. Top-performing companies understand this, often offering benefits like on-site fitness facilities or discounted gym memberships to promote physical activity.

Gamifying physical wellness through employee recognition programs can help encourage participation. Using Qarrot’s Incentive Campaigns feature, employers can reward employees for engaging in fitness challenges, which not only boosts morale but also promotes a healthy, active lifestyle. Friendly competition through leaderboards or badges can inspire more employees to stay active, improving both their physical and mental health.

Incorporating movement into daily routines, even through short breaks for stretching or walking, can significantly enhance creativity and productivity. Recognizing and rewarding employees for integrating physical activity into their workday ensures that wellness goals are consistently met.

Provide the Right Wellness Tools Today

Integrating employee recognition programs with workplace wellness initiatives offers a powerful combination for improving workforce well-being. Recognition fosters a supportive environment that enhances employee engagement, reduces stress, and boosts participation in wellness activities. Whether it’s through vision care, stress management, or encouraging physical activity, the right tools and recognition strategies help employees thrive.

With Qarrot, organizations like Cornerstone Insurance and SMTP2GO have successfully launched employee recognition programs that not only improved engagement but also supported overall wellness. By investing in both wellness and recognition, you can create a healthier, more motivated workforce. Contact Qarrot today to learn how we can help your organization succeed.

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Anything can be a good Christmas gift for your employees; it’s all about personalization. A gift card, book, or coffee mug can be either the best gift for Christmas or a missed opportunity—  it all depends on personalization.

Did you give them a gift card for something they actually want? 

Did you give them a book they actually want to read? 

Did you give them a personalized coffee mug about something they actually care about?

The trick behind giving your employees the best Christmas gift is personalization and with this article, we’ll help you uncover what your employees want for Christmas. 

But first, let’s see why you should even give your employees a Christmas gift. 

Why Christmas gifts matter

Gifts have been an important part of our culture for centuries. With gifts, we convey care for each other, strengthen our relationships, and show appreciation.

Now, this matters because a happy employee is an engaged employee and you want your employee to be happy about a gift they received in the workplace. According to HBR, when employees are happy, they have a lower turnover rate, have a higher performance in the workplace, and are more productive. 

A Gallup study about the effects of employee engagement in the workplace added a couple more benefits to this list: 

• 81% less absenteeism

• 64% less accidents at work

• 10% increase in customer loyalty

• 23% increase in profitability

A happy employee is an engaged employee and with the benefits you get from that, you want to have engaged employees. One thing to consider is that the biggest driver of employee engagement in the workplace is how much care leaders and managers show toward their employees. 

And one of the best ways to show that appreciation is by ensuring that you give your employees the best possible Christmas gift. With that in mind, let’s look at some Christmas gift ideas. 

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The process of picking the best gift (always)

When picking out a gift for your employee, you should have three things in mind: 

• Personalization. Will this gift make sense for the person? 

• Meaning. What kind of meaning do I want this gift to represent when I give it to the employee?

• Effort. What’s the effort I need to invest so that the employee feels cared about? 

According to a study done by Fox Business, 81% of employees said they were disappointed by holiday gifts in the past. The same study stated that 77% of employees said that they would prefer picking their own gift instead of the boss choosing the gift. 

The data doesn’t show us that the employees prefer to pick their own gifts; the data shows the disappointment from employees that their bosses can’t pick the right gift for them. So if you get this right, your employees will cherish it! 

Depending on your company's size and budget, you can do different things with Christmas gifts. The first thing is that the gifts don’t have to be universal— not everyone in the company needs to get the same gift (remember personalization). However, you need to be careful not to accidentally create a major disbalance in gifts. 

As an extreme example, it would mean that you can’t gift one employee a brand new car as a Christmas gift and another a coffee mug— the perceived difference in values in those gifts is too much. The best way to ensure equality is to have a dedicated budget for gifts and keep all gifts within a certain budget. 

If you have a larger company and can’t buy gifts for everyone by yourself, then give your managers a budget so they can get the gifts for their members. They’re the ones that know their members the best. 

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15 best Christmas ideas for employees 

1. Gift cards

Employees love gift cards!

With gift cards, employees can spend them with pre-approved vendors to get anything they prefer. It’s like LEGO cubes but for grown-ups. The wide range of choices is what makes gift cards so appealing. An employee can use it on LED TVs, VIP tickets to a concert, spa sessions, travel arrangements, and even Steam games. 

It’s no wonder that 75% of businesses use them as a preferred non-cash reward. Also, they can serve as a perfect Christmas gift for your employees. 

2. A book

Books, like coffee mugs, are getting a bad rep as Christmas gifts. However, that’s only true if you don’t personalize the gift. When picking out a book as a Christmas present for your employee, make sure that you don’t give them a book that teaches them how to do their job better. They might take that the wrong way. 

Instead, give them a book that’s about their personal interests. This will show personalization and that their manager or you as the HR person in charge know about their interests.  If they just started baking, ask their colleagues which chefs and bakers they follow on YouTube and get their cookbooks. The key to the book being a great present is just like any other gift— personalization. 

3. Baking tools

What’s Christmas without the sweet smell of cookies? Baking tools such as dough scrappers, bread makers, Dutch ovens, or iron pans can be really great gifts for people who like to spend time in the kitchen. 

Again, you’ll have to ensure that you personalize the gift and get the person a gift they need and they will use. 

4. A set of knives

A set of knives can be a really great Christmas gift because it’s super versatile. If you know someone in the office who is on a meat diet and prefers eating steak quite often, then you can get them a set of steak knives. 

If the employee likes fish/sushi, get them a set of sashimi knives. If they enjoy food all around, get them a set that includes a chef’s knife, a boning knife, and a Cooking knife (cleaver).

5. Humidifier/dehumidifier, air cleaner

If you have employees working from home (WFH), a humidifier/dehumidifier will be an excellent Christmas gift. They’re spending a lot of time at home and the moisture in the air most likely isn’t in the optimal range so a humidifier/dehumidifier will fix that. 

On top of that, humidifiers/dehumidifiers will also improve air quality in the space, helping people with asthma, allergies, dry sinuses or dry throats, and congestion. The best thing about this present is that it can also be used in the office environment (if the employee has a dedicated office space). Maybe their allergies are causing them to take sick days during pollen season and a great air cleaner can help prevent that. 

6. A houseplant

A houseplant can be a great Christmas gift when done right. With a houseplant, you need to not only look at the function of the plant (cleans the air) but also look at its aesthetic. This is something people will have in their space and they want something that’s aesthetically pleasing and that fits their style. 

This is the case where bigger isn’t always better— make sure that the plant fits the decor of the person or they won’t like it.  

7. Coffeemaker

Millennials love coffee. According to a study from Empower, 62% of Millennials say they’re willing to spend $7 on a daily coffee because of the joy it brings. That’s why a coffeemaker would serve as a great Christmas gift, especially to Millennial and Gen-Z employees. 

There are two things you can do with a coffeemaker: You can either gift the employee a simple, affordable coffee maker or you can get a dedicated coffee machine for their section of the office. Maybe you know that the team on the office floor wanted to get a good coffee maker so you decided to purchase a team gift and give them a great coffee maker that they’ll use on a daily basis.

8. Nutribullet/Blender

Blenders are amazing as a gift; they’re versatile and multifunctional. Your employees can use them for various things and that’s why they’re so good as a Christmas gift. 

If you know that your employee goes to the gym often, you can gift them a Nutribullet blender so they can do their shakes pre/after their gym session. If you know that your employees love to eat berries, then they can use the blender to make shakes out of them. Also, anyone who bakes or cooks can use the blender for a variety of things in the kitchen.

9. Exercise/yoga ball

When it comes to the exercise equipment, the yoga ball reigns supreme. It’s multi-purposeful and it’s universal in its size and shape. Avoid giving other exercise equipment such as dumbbells unless you absolutely know what kind of weight/shape of the bar the person uses. 

Also, be mindful that many people struggle with their weight and with a healthy body image. So use the yoga ball as a gift only if it makes sense for the person or the entire company involved. If you’re a company operating in the health industry, the message behind the gift is quite different than if you were in the fashion industry and started giving your employees yoga balls as Christmas gifts. 

10. Games

Since gaming as an industry is bigger than the music and movie industry combined, let’s immediately differentiate the gifts you can give to three types of games (and gamers):

• Online games. Online gamers are people who play games using various consoles such as PlayStation, Xbox, or Nintendo (or PC games). When giving games as Christmas gifts in this category, be mindful of the console the person uses and give them a game they can play on their console. 
• Board games. Board games range from simple games such as Don’t Be Angry, which lasts for 20 minutes to games such as Twilight Imperium which lasts around eight hours. If you know your employee plays board games, either get them an expansion pack for one of the games they already have (such as Catan), or gift them an entirely new board game that they might play with their friends. 
• Card games. Last but not least are the card games. You probably have at least one person in your company who enjoys playing card games. Magic The Gathering is the most popular card game and is played by around 50 million people. By figuring out what kind of card game your employee likes, you can buy them a pack/deck of cards from that game. 

11. A yearly subscription

Yearly subscriptions can be an excellent way to show to your employees that you care about them. Some of the gifts that might not look that great as a one-off gift are perfect for a yearly subscription. 

For example, gifting your employee French cheese once doesn’t seem like a good idea, but giving them a yearly subscription to the cheese is a great idea (if they like great cheese). 

Not all subscriptions have to be for Netflix, HBO, or Amazon Prime— you can give your employees various yearly subscriptions such as “Fruit Basket of the Month,” exotic coffees each month, or wine for the year. 

Whatever you pick, make sure that the person would enjoy that because they’re gonna be getting that throughout the entire next year! 

12. Educational programs

Employees want to invest in their professional development. So a great Christmas gift would be to give them access to to educational programs they can use to improve their skills. Massive Open Online Courses (MOOCs) such as Coursera or Udemy are a perfect example of this or LinkedIn’s Linda program that gives people certifications on LinkedIn once they finish the courses. 

13. Wellness weekend/program

Employee wellness is a big thing in today’s working environment. Considering the amount of stress and the fast-paced environment everyone’s working in, a nice way to relax and avoid burnout would be a wellness weekend in one of the facilities in the vicinity. 

With wellness, you have a plethora of options to choose from: 

• Massages
• Spa
• Sauna
• Manicure/pedicure
• Facial
• Hot-tub
• Swimming in a pool

Now, depending on your employee’s location, they might not have a facility nearby that has all of this. So, focus on the wellness program they can get nearby and provide them with a Christmas gift that will leave them relaxed and well-rested. 

14. Time off

You don’t have to spend any money on this gift, but it’s a win-win situation for everonye. When the employee gets additional time off, they can relax and recharge their batteries and the company doesn’t spend any resources on it. Look at the employees who want to visit their (distant) relatives and give them some additional time off so they can do it stress-free. 

15. Office-related gifts

Office-related gifts can be any number of gifts that you know will improve the quality of life of your employees when they’re in the office. They can be any of the following things: 

• Personalized journals

• Specialized pens (like the 5-in-1 pen)

• Desk calendars

• Adjustable (laptop) desks

• Fidget toys (remember the fidget spinner?)

• Art

• Dust/Snow/City globes

• Palm rollers

• Specialized bookends and bookmarks

• Wireless chargers

• Headphones (headset)

• Desk organizers

• Coffee mugs 

The best thing about office-related gifts is that you can combine them any way you like so you can get all of your employees a desk organizer along with a wireless charger or give them desk calendars and palm rollers. 

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In conclusion

Gifts, especially Christmas gifts, are a deeply personal matter and you should approach each employee’s gift individually. If you manage to do so, you’ll have happy employees who turn into engaged employees, which is a win-win situation at work. 

We know that picking Christmas gifts isn’t easy, and it can be especially challenging if you’re not well-versed in employee rewards and recognition programs. But you don’t have to worry— we can help you with that. With Qarrot’s catalog of e-gift cards, you’ll make picking Christmas gifts a walk in the park. So book your demo today and let us lead you through the process.

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If you work in HR, you know that fostering “engagement” goes much deeper than just throwing a fun social activity, especially if these activities are mandated. “Forced fun is not exactly a driver of employee engagement. In other words, you can’t expect mandated pizza parties and team-building activities to reduce employee turnover. Although these initiatives can provide a temporary morale boost and help with team bonding, true employee engagement goes much deeper than these surface-level initiatives. 

That said, the benefits of employee engagement are well documented. A growing body of research shows that more engaged employees are happier, more productive, and stay longer within their organizations. All these factors have a tangible impact on the organization's performance.

So, if social events don’t drive higher employee engagement, what does? This article presents recent workplace research and discusses the most critical drivers of employee engagement. We’ll also offer some concrete examples of initiatives you can easily implement today to encourage these key drivers in your workplace. If you’re getting started with an employee engagement plan, recognizing these key drivers is a key step in systematically tackling the engagement issues in your workplace.

8 Key Drivers of Employee Engagement (and How to Promote them Today)

1. Meaningful Work

Meaning at work might seem like a fluffy, vague concept. But it’s one of the most important drivers of employee engagement. In this Psychology Today article titled How to Foster Meaningful Work, the author discusses the definition of meaningful work, “It’s the subjective experience you have that your work matters, facilitates personal growth, and is significant and worthwhile.”

Of course, not every little task an employee performs has to be meaningful. It’s more about the bigger picture impact of their work, how employees feel and relate to their responsibilities, and how those duties align with their goals and personal growth plans.

Many leaders may feel overwhelmed and wonder how to encourage such an abstract idea. The author offers some concrete suggestions, like 

• Continuously communicate how your employees' work impacts the bigger picture—your organization, clients, and even the larger social impact of the work. 
• Nurture potential by putting employees on projects that challenge them and match their professional goals.
• Give employees flexibility and autonomy in how they perform and complete their work.

As you can see, fostering meaningful work doesn’t have to involve rolling out shiny new initiatives that require tons of resources and time to set up and run. It may be as simple as leaders communicating the impact of their employees' work and aligning employee tasks and duties with their interests and passions. 

2. Leadership Quality

It's a well-known fact that employees perform better under competent leaders. Yet, the reality is that many companies are wrestling with subpar leadership, leading to significant issues in employee engagement. 

Gallup recently reported that only 23% of U.S. employees strongly agree that they trust their organization's leadership. Calm's yearly Voice of the Workplace report showed that about half (49%) of employees claim their manager genuinely cares about their well-being. Those are some discouraging statistics. 

Fortunately, effective leadership can be taught and fostered. Business leaders, HR professionals, and managers have the power to implement changes and improve the leadership in their organizations. For example, leadership training, mentorship programs, and anonymous surveys to gauge leadership quality can be implemented to ensure your company's leadership meets standards that help employees thrive.

3. Opportunities for Development and Growth

Work is a core pillar of modern life. What else could explain the most common question people ask when they first meet, "What do you do for work?" Work goes beyond something we do for a paycheck; it's a core driver of our identity. 

As a result, many people see work as a vehicle for growing, learning, and evolving as professionals and people. Of course, some people are in a phase in their careers where they are happy just going to work, executing their job well, and nothing more. Yet, many people desire to be stimulated and challenged at work.

A recent BetterWorks State of Performance Enablement report revealed this truth and found that 86% of employees say skill development and coaching are important to them, but only 54% are receiving it. At the same time, a report by Canadian health tech company Dialogue found that 63% of HR professionals agree that employee career development is a significant challenge for their business. Simply put, Employees want to be challenged and developed, but practically speaking, businesses and their HR teams are struggling to meet this demand; there aren't unlimited promotions to go around to everyone who wants it.

In the book Promotions Are So Yesterday, workplace expert and author Julie Winkle Giulioni addresses the common issue of "how to offer growth when promotions are in short supply."

A few of the suggestions she offers:

• Re-define what "growth" is: Promotions or title changes should not be the only way we define growth or career development. Moving beyond this traditional definition will open up countless opportunities to offer "growth" to your employees.
• Build employees' confidence: Help identify areas of strength and weakness and nudge employees out of their comfort zones.
• Help employees build connections: Support employees in fostering internal connections. For example, can you help employees with the following: Attending an event, meeting key leaders, or leading a meeting?

4. Recognition and Rewards

Imagine going to work and never getting positive remarks or “good job” from your leaders or peers. It wouldn’t be too long before you felt resentful and burnt out. Paychecks are important—as we will see later in this article, but they cannot replace the positive feelings that genuine recognition can evoke.

A wealth of research supports the importance of recognition in the workplace. For example, a recent Gallup research report found that employees who receive great recognition are 20X as likely to be engaged as employees who receive poor recognition. Recognition is even critical to more physically demanding work environments like manufacturing and production. A Manufacturing Institute report showed that workers who felt valued were more than 4X as likely to report high levels of work engagement and less likely to feel stressed out on a typical workday. 

a recent Gallup research report found that employees who receive great recognition are 20X as likely to be engaged as employees who receive poor recognition.

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That said, there are many types of employee recognition in the workplace—from casual “good jobs” to more formal years of service programs. Organizations can grow appreciation in the workplace in various ways.

Some examples of employee recognition programs that leaders can be implemented in a workplace include:

• Peer-to-peer recognition: Peer-to-peer recognition programs can be facilitated through digital platforms like Qarrot, where employees can send kudos, thank-you notes, or points redeemed for rewards.
• Anniversary and milestone awards: Celebrating work anniversaries and significant milestones is a great way to show appreciation for long-term commitment and loyalty. These awards can be given for milestones such as 1, 5, 10, or 20 years of service.
• Social media shoutouts: Highlighting employee achievements on platforms like LinkedIn, Facebook, or the company’s blog makes the employee feel valued and showcases the company’s positive culture to a wider audience.

There are countless ways businesses can start fostering a culture of recognition. For organizations new to recognition programs, the best approach is to start with a small initiative and work your way up from there. 

5. Work-Life Balance

The pandemic forced people to reconsider work-life balance; people started reevaluating their priorities and values around work. As a result, hustle and burnout culture came under scrutiny, and work freedom and flexibility became one of the most important factors driving employee happiness and engagement. 

A Randstad Workmonitor report found that work-life balance now ranks as highly as pay on talent's priorities (93%)—far ahead of any other category. Another report by Canadian healthtech company Dialogue found that work-life balance is a top contributor to employees' mental health after financial situation and job satisfaction.

Work-life balance has become a core consideration for candidates and a powerful driver of employee engagement. Thankfully, employers can help protect employees' work-life balance in many ways, both at the higher policy and program level and at the managerial level. 

For example, at the organizational level, companies can create initiatives for flexible work hours and remote work options. At the managerial level, clear boundaries can be established around communication expectations outside work hours. Showing employees that the organization and leadership care about protecting their work-life balance can improve employee engagement and lead to a more productive and happier workforce.

6. Autonomy and Empowerment

Autonomy and empowerment are vital drivers of employee engagement because they tap into the basic human need for control. When employees are free to make decisions and feel empowered to take ownership of their work, it fuels their intrinsic motivation—meaning they're driven by the internal satisfaction of the task rather than external rewards. 

According to self-determination theory (SDT), a well-established psychological model, humans are naturally motivated when they feel competent, connected, and autonomous. In other words, people are often motivated by external factors such as money, awards, and prestige (i.e., extrinsic motivation); however, self-determination theory focuses primarily on internal sources of motivation, such as a need to gain knowledge or independence (i.e., intrinsic motivation).

This sense of autonomy doesn't just make people feel good; it actually boosts their engagement, creativity, and overall job satisfaction. Empowered employees are more likely to be passionate about their work, leading to better performance and a more vibrant workplace.

Organizations can help drive employee engagement by fostering greater employee autonomy and empowerment. This can be accomplished at higher levels through official policies and programs, but it can also be achieved in smaller, everyday ways at the team level. 

For example, organizations can offer flexible work arrangements, allowing employees to work from home or even abroad for a given period of the year. On a team level, managers can give some flexibility over employees' schedules or give employees some input into their goals, tasks, and responsibilities. 

7. Communication and Transparency

Dishonesty, distrust, and fear are the opposites of healthy work cultures. Doing your best work is impossible when you are tense and on edge. In other words, a sense of safety and security in the workplace is vital to employee happiness and productivity. Organizations and leaders must provide employees with a sense of trust. 

When leaders are open and transparent about decisions, goals, and challenges, employees feel more connected and valued, knowing they’re in the loop. This clarity helps reduce uncertainty, which is a significant factor in reducing stress and boosting motivation. 

Unfortunately, recent employee engagement statistics show some bleak numbers in this area. According to recent Gallup findings, employee trust in leadership has significantly declined in recent years, with only 23% of U.S. employees “strongly agreeing” that they trust their company’s leadership.

Thankfully, organizations can implement strategies for improving organizational communication and trust. At the organizational level, leaders can hold regular all-hands meetings to discuss the company’s goals, challenges, and progress. Accessible channels for sharing company updates can also be set up, which can keep everyone informed and aligned. 

Zooming in on a team level, managers can hold frequent check-ins, encourage open dialogue, and actively listen to concerns. Executing an open-door policy can make it easier for employees to voice their thoughts while providing regular feedback.

8. Fair Compensation and Benefits

We couldn't finish this article without mentioning compensation. Of course, pay isn't the only factor driving employee engagement, but it's a crucial baseline factor. When employees feel fairly compensated, it sends a clear message that their work is valued and that the organization respects their contributions. In other words, ensuring fair pay directly addresses basic human needs for security and recognition.

Looking at classical psychological theories like Maslow's hierarchy of needs, we can see that financial security is fundamental and needs to be met before humans can feel motivated to work towards and focus on higher-level motivations like achievement and growth. Seeing results like this one from Calm's yearly Voices of the Workplace Report makes sense. It shows that employees' top mental health stressor in 2024 is the cost of living/inflation. When people are not able to meet these fundamental needs their mental, emotional, and even physical health can suffer.

This research suggests that the financial stress of not being able to make ends meet or keep up with the cost of living has a significant detrimental impact on people's mental health. For employers, this has substantial implications. People's work performance, concentration, and productivity suffer when they are chronically stressed and worried about their living situations and finances. To that end, ensuring employees are being paid fairly and given a wage that allows them to meet their basic living requirements is critical to protecting employee engagement.

Final Thoughts

Employee engagement is a multifaceted and deeply rooted aspect of organizational success.

While it may be tempting to rely on surface-level activities like social events or extra snacks, true engagement requires a more thoughtful and comprehensive approach. By focusing on core drivers like meaningful work, quality leadership, and, recognition, organizations can create an environment where employees feel valued, motivated, and connected to their work.

Implementing these drivers of employee engagement isn’t about making sweeping changes overnight. Instead, it's about consistently cultivating a workplace culture that prioritizes these core elements, leading to a more engaged, productive, and loyal workforce. Remember, engagement is an ongoing process, not a one-time initiative. By taking the time to understand and address what truly drives your employees, you’ll be investing in the long-term health and success of your organization.

Imagine a workplace where employees feel valued and appreciated daily, where their efforts are valued, and recognition is a regular part of the company culture. This isn’t just a dream—it's entirely achievable with the right employee recognition and rewards programs in place.

That said, if you’re an HR professional looking to launch a recognition program, you might have many questions and concerns floating around your mind.

For example:

• What type of recognition program should I launch?
• What kinds of resources will it take to make it happen?
• What type of program would employees prefer?

Before jumping into planning and execution mode, it’s important to remember that employee recognition comes in many shapes and sizes. In short, different types of recognition programs exist, ranging from simple thank-you notes and shoutouts to more elaborate reward systems and formal awards. There is no one-size-fits-all formula. 

In this article, we’ll help you start your company’s recognition journey by exploring various examples of employee recognition programs you can adopt in your organization. Whether you’re a small business or a large corporation, there’s something here for everyone. From spot awards and peer-to-peer recognition to personalized gifts and professional development opportunities, you’ll find plenty of inspiration to get started.

Understanding employee recognition programs

At their core, employee recognition programs are systems to acknowledge and reward employees for their hard work, achievements, and contributions to the organization. These programs can take many forms, from formal awards ceremonies to casual and informal thank-you notes and everything in between. The main goal is to make employees feel valued and appreciated, which can have a ripple effect on the entire workplace.

To understand employee recognition programs better, it helps to categorize recognition programs into two main types: formal and informal.

More “formal” programs usually involve initiatives like:

• Years of service awards 
• Milestone programs
• Performance awards
• Birthday celebrations
• Employee of the month
• Nomination programs

More “informal” programs usually involve initiatives like:

• Shoutouts in meetings
• Organizing paid outings or events
• Thank you letters
• Offering small gifts for a job well done

If you’re looking to launch your company's first employee recognition initiative, you might wonder, “What type of program should I launch?” There is no correct answer to this question. The right answer depends on factors like your budget, employee preferences, and the nature of your work environment. 

For example, are your employees all working remotely from home, or are most employees working on a factory floor? These conditions will influence what recognition program works best for your business.

So, before you decide on the program type, consider some of the following factors:

• The size of your organization
• The nature of your work environment (i.e., remote, on-site, hybrid)
• Budget and resources available to manage and run the program
• What types of rewards will employees prefer (i.e., verbal recognition, gifts, experiences, monetary rewards, etc.)

Key Elements of Successful Employee Recognition Programs

Creating a successful employee recognition program isn’t just about handing out awards; it’s about crafting a thoughtful strategy that truly resonates with your team. Here are the key elements that make an employee recognition program effective and impactful.

Clear Criteria

A recognition program must have clear criteria to be fair and motivating. Employees should understand exactly what behaviors and achievements are being recognized. This clarity helps ensure everyone knows what is expected and feels that the program is equitable. Transparent criteria also help set achievable goals that align with the company’s values and objectives.

Consistency

Consistency is crucial in maintaining the credibility of the recognition program. Recognition should be given out regularly and fairly across the organization. If employees see that recognition is sporadic or biased, it can undermine the program’s effectiveness and lead to feelings of resentment. A consistent approach helps build trust and continuously reinforces positive behaviors.

Inclusivity

An inclusive recognition program ensures that all employees, regardless of their position, department, or background, can be recognized. This inclusivity fosters a sense of belonging and equality within the workplace. It’s important to recognize a wide range of contributions, from high-profile achievements to the everyday efforts that keep the company running smoothly.

Timeliness

Recognition loses its impact if it’s delayed. Timely recognition means celebrating achievements soon after they occur. This immediacy reinforces the connection between the behavior and the reward, making the recognition more meaningful and encouraging employees to repeat the positive actions.

Personalization

Tailoring recognition to the individual can greatly enhance its effectiveness. While some employees might appreciate public acknowledgment, others prefer a private thank-you or a personalized note. Understanding what motivates each employee can help deliver recognition that truly resonates with them.

Variety of Rewards

Offering a variety of rewards can cater to different preferences and keep the program exciting. These can range from verbal praise and certificates to monetary bonuses and experiential rewards like team outings or professional development opportunities. A mix of rewards ensures something for everyone and keeps the program dynamic.

By incorporating these key elements, you can build a recognition program that boosts morale and engagement and aligns with your company’s values and goals. A well-designed recognition program can transform your workplace, making it a more positive, productive, and fulfilling environment for everyone.

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7 Employee Recognition Program Examples

Implementing an employee recognition program can take many forms, each tailored to fit your organization's unique culture and needs. Here are some tried-and-true examples of employee recognition programs that can inspire you to create a more engaged and motivated workforce:

Spot Awards

Spot awards are an excellent way to recognize specific achievements immediately. They can be given on the spot when employees go above and beyond in their duties. Spot awards recognize and reward outstanding contributions in real-time, whether solving a critical problem, helping a colleague, or delivering exceptional customer service. These can include gift cards, a small bonus, or even a simple, impactful public acknowledgment during a meeting.

Employee of the Month/Quarter

Regularly scheduled awards like Employee of the Month, Quarter, or Year are classics for a reason. They provide a formal structure for consistently recognizing top performers. These awards can be highlighted through ceremonies, newsletters, or company-wide announcements, allowing employees to be celebrated for their hard work and dedication. Winners can receive trophies, plaques, or other meaningful rewards that symbolize their achievements.

Peer-to-Peer Recognition

Encouraging employees to recognize each other’s efforts can build a strong sense of community and teamwork. Peer-to-peer recognition programs can be facilitated through digital platforms where employees can send kudos, thank-you notes, or points that can be redeemed for rewards. This type of recognition is particularly powerful because it comes from colleagues who directly witness each other’s contributions daily. Peer recognition platforms like Qarrot can support these employee recognition initiatives and programs. 

Point-Based Rewards System

A point-based rewards system allows employees to accumulate points for various achievements, which they can later redeem for prizes or experiences. This system can include incentive campaigns for meeting performance goals, participating in company events, or demonstrating company values. Its flexibility makes it adaptable to different preferences and keeps employees engaged and motivated.

Anniversary and Milestone Awards

Celebrating work anniversaries and significant milestones is a great way to show appreciation for long-term commitment and loyalty. These awards can be given for milestones such as 1, 5, 10, or 20 years of service. Recognizing these milestones with personalized gifts, extra vacation days, or a special celebration can make employees feel valued for their contributions.

Social Media Shoutouts

Public recognition on social media channels can amplify the impact of employee appreciation. Highlighting employee achievements on platforms like LinkedIn, Facebook, or the company’s blog makes the employee feel valued and showcases the company’s positive culture to a wider audience. This recognition can boost morale and enhance the company’s reputation externally.

Experience-Based Rewards

Offering experiences as rewards can create memorable and meaningful recognition moments. These can include concert tickets, sports events, or even paid vacations. Experience-based rewards cater to employees’ interests and hobbies, providing a personal touch beyond monetary value.

Implementing any of these recognition programs can significantly improve employee morale and engagement. The key is choosing or combining approaches that best align with your company culture and team's preferences. Doing so can create a workplace where employees feel appreciated and motivated to give their best.

Challenges With Recognition Programs (and Tips to Overcome Them)

At Qarrot, we’ve helped countless companies launch successful employee recognition and rewards programs. Over time, we have learned some lessons about designing, launching, and maintaining a successful program.

Let’s discuss some of the most common challenges HR professionals and leaders face when launching employee rewards and recognition programs. And most importantly, we’ll cover some simple strategies and tactics you can implement to mitigate these issues and even completely overcome them.

1. Lack of participation or enthusiasm

Employee enthusiasm and participation are big concerns if you dedicate a budget to this new program. Of course, you want this to be a success! We have found some simple and effective strategies that can help alleviate this concern and maximize program participation.

• Create a strong internal promotion: Building hype and buzz around a new initiative is important. It's time to remove your HR hat and put on your marketing hat. The key to success is repetition; people must hear things multiple times for the information to stick. Don't just plan for one announcement right before launching; plan a rollout schedule that involves several announcements over multiple touch-points like email, in-person announcements, manager meetings, etc
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• Ensure senior leadership stands behind it‍: Rewards and recognition programs are more successful when employees see the company's senior leadership support them. This encourages employees to get involved and participate. Ensuring leaders are involved is as simple as having them contribute to creating the buzz around the program and proactively participating in recognition giving, for example.
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• Training and empowering managers: ‍Managers set the tone for the company and employees; if managers don't initiate recognition, neither will employees. So, getting buy-in from them and getting them properly trained and educated on the program's components is critical. 

2. Budget constraints

If you work in HR, you know that getting even a tiny slice of the budget for extra initiatives can be difficult. Executives are often wary of investing in programs with ambiguous ROI. Of course, HR teams will have difficulty launching recognition or reward programs if they don't have buy-in from senior leadership.

We suggest you approach this conversation more logically to make the hurdle of getting financial buy-in easier. In short, you want to build a business case for employee recognition. To achieve this, you must first prove to leadership that a problem in the business needs to be addressed. 

For example:

• High turnover
• Low morale
• Low satisfaction
• Low average tenure

Pro tip: You'll build an even stronger case if you can put a hard price tag on how much money the business loses due to these challenges. Hopefully, with more strategic conversations, you can free up a budget to help fuel your recognition and rewards initiatives.‍

3. Ensuring fairness

A common worry among leaders when launching a recognition program is whether employees will get jealous of each other or will people feel it’s unfair.

While this is a normal worry, the reality is that when recognition is genuinely earned and given in a sincere and personalized way, other employees are rarely jealous. In fact, they get behind the appreciation message because they see their peer working hard, too! 

In other words, here are a few ways to ensure fairness and avoid biases in recognition giving.

• Train managers on what actions and accomplishments deserve recognition. This will ensure everyone gets a chance to receive it.
• Make sure recognition messages are personalized and highlight employees' efforts.
• Ensure peers know they can recognize each other, too.

If you notice jealousy among your employees, a deeper cultural issue is usually at play that is simply being brought to the surface due to the employee recognition program being implemented. ‍‍

4. Sustaining momentum

Like most things in life, excitement fades over time. That’s human nature. Even if your recognition program was initially well received and widely adopted, you may find that employee enthusiasm and participation fade over time. This is normal!

With a few simple strategies, you can easily mitigate this issue and ensure that people are always excited and eager to get involved.

• Monitor participation‍: First, make sure you’re monitoring participation in the program. If you use a recognition tool like Qarrot, these analytics features are integrated into the platform. This way, you’ll always have your finger on the pulse of program involvement.
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• Give a refresher‍: When new employees and managers join the company, they might be told about the program, but if they’re not exposed first-hand, participation might dip. Occasionally, hosting refresher sessions for those new employees or leaders can help keep the program's momentum up over time.
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• Embed appreciation into your culture: ‍Consider making “recognition” or “appreciation” a part of your core cultural values. Have your executive and senior leaders stand behind this effort. Ensure these new cultural values are visually and verbally promoted and visible at various touchpoints, such as company meetings, website, social media, and office walls.

Final Thoughts

Launching a successful recognition program may seem daunting, but with a clear understanding of your team's needs, you can implement an initiative that makes a difference. In this article, we've explored seven examples of recognition programs, each designed to help foster a strong culture of appreciation in your organization. Our best advice is to start small, remain flexible, and continually refine your approach to ensure long-lasting impact.

As always, the main challenge for HR professionals is determining which type of program will best serve their organization. The key is to understand your workforce and their unique needs. By considering factors like employee demographics and the nature of your work environment, you can design a recognition program that will resonate with your teams. And don't be afraid to seek employee feedback and make adjustments as necessary. By committing to a thoughtful and strategic approach, you can create a recognition program that not only improves day-to-day employee satisfaction but also moves your organization toward greater long-term success

A successful business is one with engaged employees. In fact, we've recently reported statistics finding that companies that actively make an effort to engage employees can reduce turnover by over 18%. Despite that, 85% of employees aren't engaged at work. One of the biggest reasons why? A lack of well-being in the office. Due to factors like stress, worsened health and wellness, and toxic workplace cultures, many employees feel they don't receive the support they need to stay at their current jobs.

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Fortunately, this is something your own business can avoid. With the right strategies, you can enhance your employees' well-being in the workplace and better engage them in all the right ways. Here are some health and wellness tips you can try to achieve just that.

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Promote better eating

Ensuring employees get the proper nourishment, even just at the office, will guarantee that they can always function at their best. That means sharpened physical and cognitive skills for more energy, less absenteeism—and, ultimately, improved productivity. Case studies on workplaces in Canada and other countries around the globe even find that nutrition-focused workplace interventions can significantly influence how healthily employees eat at home, which can help them feel like you genuinely care for their well-being and better engage them at work. Some things you can try to promote better eating include providing healthy meal and snack options in the office and curating more nutritious menus when booking catering services for work events.

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Motivate more movement

This tip is one you should keep in mind if your employees work desk jobs. Prolonged periods spent sitting down can negatively impact their health by elevating blood pressure and sugar levels while increasing their likelihood of developing obesity and even cancer. That said, give your employees more opportunities to move around. Think of walking meetings and staff walking contests; charity runs as team-building activities and gym memberships as employee incentives. 

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You can also integrate that motivation for movement into your employees' daily routines. In particular, consider outfitting their workspaces with ergonomic furniture. Sit-stand workstations like the VIVO and VariDesk Pro Plus 36 can help employees vary their work positions and break up those long sedentary periods during office hours, reducing the risk of them developing aches and pains that can ultimately take away from their well-being. In fact, standing desks have helped big companies like CBRE create modern workspaces that significantly increase employee satisfaction.

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Prioritize vision care

Though digital transformation has been especially beneficial for businesses, companies need to watch out for worsened employee eye health. An increasing reliance on devices to get jobs done means more screen time. That can cause pain and discomfort through computer vision syndrome, negatively impacting their productivity and well-being. 

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Fortunately, you can avoid that by prioritizing employee vision care. Consider starting by working with optometry clinics to provide eye exams free of cost to your employees. That can help them easily determine if they need to buy corrective aids or update their existing prescriptions. You can help here, too. By allocating funds to add vision care to your benefits package, your employees can purchase eyeglasses from reliable brands at a cheaper price. One major retailer you can consider is Ray-Ban. It accepts most insurance plans upon checkout, meaning employees can more easily avail of eyewear from its optical line. Aside from updated prescriptions, these can come with advanced lens technologies like blue-violet light filtering to reduce eye strain from excess screen time. Ultimately, that means you can give your employees a more accessible way to safeguard their eye health at work and improve their overall well-being.

Support mental health

Another thing you need to keep in mind is that the modern business landscape is more fast-paced than ever. That means employees are more likely to get stressed and burn out—making it especially vital for you to engage them in ways that support their mental health. One way you can start is by promoting better work-life balance. Offer flexible work arrangements, establish boundaries like discouraging work communications outside office hours, and support employees taking time off for mental health reasons. 

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For longer-lasting results, consider implementing more serious workplace initiatives similar to Health Canada's Employee Assistance Program, which provides federal employees and their families 24/7 access to mental health support. Your efforts in this direction can involve connecting your own team to mental health professionals for counselling and offering rebates for any sessions they attend. As with vision care, you can also add mental health coverage to your benefits packages. With nearly 43% of Canadian employees unable to afford mental healthcare, your efforts can help better enhance their well-being for improved engagement.

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Recognition at work can mean many things – from casual “good jobs” to more formal appreciation involving an actual budget and tangible gifts and rewards. Each type of employee recognition fulfills a different employee need. 

For example, some types of employee recognition are better short-term motivators than others, while some are better at stimulating long-term motivation. There is no one-size-fits-all formula. Ultimately, one singular recognition program or type can’t address all employee needs. A more comprehensive approach is needed. 

To that end, it might seem difficult to know where to start if you're looking to grow appreciation in your workplace. You might be asking yourself what type of employee recognition or rewards programs we should focus on? Which will have the most impact on our workforce? Before answering this question, we'll classify recognition types into two main groups. You will see why one sort of recognition is a good start but not enough to fully reap the benefits of appreciation.

Types of Employee Recognition (With Examples of Each)

Employee recognition is a broad term encompassing different actions and measures leaders and organizations can take to express employees' appreciation. 

For example:

• Offering verbal praise for a job well done.
• Planning a paid lunch to thank employees upon completing a big project.
• Offering employees a yearly monetary bonus for exceeding their performance objectives. 

As you can see, organizations can recognize their employees in many ways. But this begs the question: If you know your business is lacking in the recognition department and employees aren’t feeling appreciated, how do you know where to start? What types of recognition programs should you implement?

First, it helps to understand that all recognition initiatives can be divided into two main types: formal and informal programs.

Both recognition types serve an important purpose in stimulating employee motivation and happiness. Let’s review each one in a little more depth and go over the pros and cons of each so you can see why each type is critical to building a well-rounded culture of appreciation in your workplace. 

Formal Recognition

Formal methods are more traditional ways of offering recognition. These programs or initiatives often take a top-down approach, meaning that leaders or even executives offer gratitude to employees on behalf of the company. 

HR teams are often responsible for planning and structuring these programs and initiatives. We label these types of recognition as “formal” as they are structured and ceremonial in nature; they are often expected and happen at predictable times.

Here are a few examples of formal recognition:

• Years of service awards 
• Promotions or title changes
• Milestone programs
• Performance bonuses/awards
• Merit increases
• Birthday celebrations
• Employee of the month
• Nomination programs

Think of formal recognition as the foundation of your culture of appreciation. These events give employees something to look forward to. Formal methods are excellent at addressing long-term employee needs. These recognition initiatives incentivize and sustain deeper employee motivation. 

However, this type of recognition method is not without drawbacks. Let’s look at the pros and cons of formal recognition in a little more detail.

Benefits of formal recognition:

• Predictable and consistent: Formal recognition gives managers a clear picture of when to give recognition, and employees also have a scheduled recognition event to look forward to.
• Impactful: Recognition is usually given on the organization's or executives' behalf, and its formal nature gives it more impact and weight.
• Fair and inclusive: For most formal programs, every employee is included (or at least has an opportunity to be) and, therefore, can get recognized.

Drawbacks of formal recognition:

• Infrequent: Employees often have to wait long periods to receive formal recognition.
• Resource and time-intensive: Formal programs are structured and involve a budget; they must be carefully planned, approved, and rolled out. 
• Can be generic: Recognition is usually offered globally for the accumulation of achievements, so it’s not usually tied to specific achievements or skills. If everyone receives the same gift or trophy, recognition risks feeling impersonal.

Informal Recognition

Informal recognition is flexible and unstructured in nature. It is often offered by an employee's direct manager or even peers. Little planning and preparation are involved in these types of recognition initiatives; they are often offered on an “as-needed” basis and given in the form of verbal recognition, but they can also be accompanied by tangible gifts or rewards.

More “informal” programs usually involve initiatives like:

• Shoutouts in meetings
• Peer-to-peer recognition
• Recognition boards
• Organizing paid outings or events
• Thank you letters
• Offering small gifts for a job well done

These types of employee recognition practices are critical in the workplace. A Deloitte survey on recognition strategy in the workplace found that 85% of workers want to hear “thank you” in day-to-day interactions.

Recognition has a strong impact, but it is also short-lived. Recognition must be offered in small, consistent ways to have the most impact. When leaders focus on cultivating a culture where informal recognition is regularly offered to employees and between peers, a team will benefit from the continuous morale boost that appreciation and recognition can bring.

Again, this type of recognition method is critical but not without drawbacks. Let’s look at the pros and cons of informal recognition in a little more detail.

Benefits of informal recognition:

• Flexible and frequent: Employees don’t have to wait for a formal event to receive appreciation or praise.
• Easy to administer and inexpensive: Informal programs or methods of appreciation are easy to set up, roll out and can often be completely free.
• From manager or peers: Praise comes directly from a manager or peer rather than the organization, so it feels more personal.
• Specific accomplishment: With informal methods, employees are usually praised for specific skills and accomplishments.

Drawbacks of informal recognition 

• Lack of impact: Informal recognition is casual and given spontaneously. As a result, it can sometimes come across as vague and lack the impact and weight of more formal methods. 
• Consistency: Creating a culture of regular recognition takes practice. The frequency and consistency at which recognition is offered to employees may fluctuate.
• Perceived favoritism: Managers may inadvertently recognize a few employees, causing feelings of favoritism. However, this is easy to avoid when managers try to recognize different types of actions and people.

What is the most effective type of employee recognition?

At Qarrot, our specialty is employee recognition. We’ve helped many companies grow appreciation in their workplaces through official recognition programs, and we’ve seen firsthand the impact that consistent recognition can bring to a company. 

First, it’s important to remember that there is no one-size-fits-all solution for recognition. As you can see from above, both formal and informal recognition methods should be used to have the maximum impact on your workforce. 

Think about this: How would you feel if you only received words of appreciation from your loved ones on your birthday and total silence for the remaining 364 days of the year? Of course, you’d be happy to have a big celebration one day a year, but appreciation also needs to be given in small but consistent ways to have the most impact on the quality of our relationship.

The same idea applies at work. Honoring formal recognition events, like work anniversaries, promotions, or performance awards, is critical to employee happiness and motivation. But these events happen too sparingly to have a consistent impact. This is where informal methods come in to fill the gaps. 

And, of course, recognition can involve monetary rewards, but it doesn’t always have to. Interestingly, a wealth of research shows how important simple but consistent verbal appreciation can be on employee happiness and morale.

For example, Dr. Paul White is a psychologist, organizational consultant, and expert on workplace appreciation. He and his team have been studying it for over a decade and have surveyed over 400,000 people on how they prefer to be appreciated at work. 

Their research has found that “words of affirmation” continue to be the most desired form of appreciation at work. This comes ahead of quality time, acts of service, and tangible gifts. In other words, giving impactful recognition can involve something as simple as leaders sharing their verbal appreciation regularly. Nothing more.

So, if you’re an HR professional or business leader looking to invest in recognition and rewards, here are a few suggestions to help you get started in the right direction. 

Ask for feedback

If you’re unsure how employees want to be appreciated and recognized – simply ask them! Depending on the size of your company, this can be achieved with a simple survey or gathering feedback from your managers.

You can ask:

• Do you feel appreciated and recognized for your work?
• How would you prefer we show you appreciation (i.e., verbal recognition, team lunch, etc.)
• Can you give me an example of a time you felt appreciated for your accomplishments?
  

Once you have a better idea of how employees want to be appreciated, you can take the right steps and implement the initiatives and programs to meet their needs.‍

Build a business case for appreciation

If you work in HR, you know that getting even a tiny slice of the budget for extra initiatives can be difficult. Executives are often wary of investing in programs with ambiguous ROI. Of course, HR teams will have difficulty launching recognition or reward programs if they don't have buy-in from senior leadership. 

We suggest you approach this conversation more logically to make the hurdle of getting financial buy-in easier. In short, you want to build a business case for employee recognition. To achieve this, you must first prove to leadership that a problem in the business needs to be addressed.

For example: 

• High turnover 
• Low morale 
• Low satisfaction 
• Low average tenure 

Pro tip: You'll build an even stronger case if you can put a hard price tag on how much money the business loses due to these challenges. Hopefully, with more strategic conversations, you can free up a budget to help fuel your recognition and rewards initiatives.

Embed recognition in your culture 

‍Consider making “recognition” or “appreciation” a part of your core cultural values. Have your executive and senior leaders stand behind this effort. Ensure these new cultural values are promoted and visible at various touch points with which employees interact. For example, the company website, social media, and office walls are emphasized at company meet-ups and meetings. When employees see that this program isn’t just a surface-level initiative but a deeper reflection of the company's values, they’ll be more likely to practice this habit continuously.

Make sure leaders stand behind your programs

Rewards and recognition programs are more successful when employees see the company's senior leadership support them. This encourages employees to get involved and participate. Ensuring leaders are involved is as simple as having them contribute to creating the buzz around the program and proactively participating in recognition giving, for example.

Final Thoughts

Recognition is not one-size-fits-all. There are countless ways to show employees your appreciation as a leader and even on behalf of your entire organization. Each type of employee recognition serves a distinct function and objective in terms of employee happiness and motivation.

In this article, we’ve covered two main types: formal and informal programs and methods of recognition. After examining the benefits and drawbacks of each, it’s easy to see why both types are critical to building a culture of appreciation in the workplace.

With predictable and systematic recognition events, formal recognition provides a necessary foundation for a strong culture of appreciation. While informal methods fill in the gaps with casual and spontaneous recognition, employees crave on a week-to-week or even day-to-day basis. By investing in both formal and informal methods of recognition, your business will be in a better position to foster a positive work environment, increase employee engagement, and ultimately boost overall performance.