Redesigning Employee Recognition and Rewards for Better Results

BY Emily McCrary-Ruiz-Esparza | February 12, 2025

Companies are thinking more holistically about benefits than they did in the past, says Britt Barney, manager of client success at financial benefits platform Northstar, where she consults across industries. “There used to be silos where the benefits team was responsible for benefits, and maybe HR and people experience were responsible for rewards, but companies are starting to realize that recognition, rewards, benefits, and salaries are all ways to show appreciation to employees.”

Yet at the same time, the focus on employee well-being seems to be waning. The pendulum has swung from taking care of people at all costs, to taking care of business at all costs, says Meredith Haberfeld, founder and CEO of management coaching firm ThinkHuman. “But if we can’t take care of the people, we can’t take care of the business.”

Barney has noticed the swing too. As organizations pay closer attention to the bottom line, benefits leaders are being made to look at their packages with a lot more scrutiny, asking “Why? Why are we having these programs? Why are we doing recognitions and rewards? What is it tied to?” she said. But that exercise isn’t a bad one, ultimately. It is the first step in making a better program that employees and the business both benefit from. 

This was the topic of a panel discussion at From Day One’s January virtual conference on innovation in total rewards, where Barney and Haberfeld were joined by their colleagues in employee benefits, who outlined how they’ve carefully retooled recognition and rewards programs for better results.

Redesigning Recognition and Rewards in a Growing Company

The multinational energy management firm Schneider Electric saw double-digit growth last year, “which is unusual for a company that has typically grown 2% to 3% per year,” said VP of total rewards Marina Vassilev. To keep pace, she retooled the performance management system, and along with it, the company’s recognition practices. That included increasing the number of reviews, “providing feedback and recognition throughout the year through performance check-ins, not just at the end of year during the annual appraisal process.” 

Like reviews, recognition at Schneider now happens throughout the year, with “the accomplishments sometimes celebrated publicly on our internal social media network, and this shifts the focus to what we want to celebrate as an organization: Our impact,” Vassilev said. “We are recognizing contributions in real time, and we are motivating our employees and creating an environment where the achievements are acknowledged and celebrated.”

At insurance company Assurant, SVP of global total rewards Mike Katz took on a similar project, which included selecting a new recognition platform. Katz had four criteria: 

First, a platform that can operate in multiple languages. Assurant is a global company, and though English is the preferred language, it’s not the first for many frontline workers. He wants everyone to get the recognition they deserve in the language they want.

Emily McCrary-Ruiz-Esparza moderated the panel about "Employee Recognition and Rewards: How Managers Can Be Empowered" (photo by From Day One)

Second, a wide variety of rewards so employees can pick something that’s meaningful to them. Katz doesn’t want to hand someone a Starbucks gift card if what they really like is kombucha. Third, reporting and analytics capabilities, “so you’re able to slice and dice the data to understand what’s working and what's not working.” And finally, a platform that allows for public recognition. When employees see their colleagues recognized for their good work, they may be more likely to pick up the habit too.

That kind of culture matters, but it can be hard to scale, says Sonya Mansur, director of global total rewards for ZS, a management consulting and tech firm. When the company was small, it was easy for an executive to stand up and praise a manager’s hard work in a public forum. As ZS grows, she’s carefully shepherding those same habits. Recognition needs to feel pretty seamless in order to work, Mansur said. “It needs to be organic in your company, and very common.” Especially in an ultra-competitive, customer-facing industry like management consulting, recognizing your colleagues’ good work can directly affect business.

Haberfeld encouraged employers to build a culture where people can do their best work, then worry about a recognition and rewards program. “I was recently talking to a VP level leader who was like, ‘I get my job done, but the culture here is so challenging, it’s probably only getting 50% of me.” The VP said he’s been given raises and bonuses, but what he really wants is just a better place to work. The company is treating the wrong problem. “ I do good work,” he told her. “But I have so much more I could give.’”

Emily McCrary-Ruiz-Esparza is an independent journalist and From Day One contributing editor who writes about business and the world of work. Her work has appeared in the Economist, the BBC, The Washington Post, Inc., and Business Insider, among others. She is the recipient of a Virginia Press Association award for business and financial journalism.

(Photo by jacoblund/iStock)

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