Manufacturing employees do some of the most challenging and potentially dangerous work in the job market. Without them, though, none of the things that make our lives so much easier would even exist.
That alone is worth some recognition, right?
What is an employee recognition program?
An employee recognition program is a formalized way for employers to show appreciation for their employees' hard work and dedication.
In the manufacturing industry, there are plenty of different ways to recognize employees:
- Written praise (public or private)
- Shoutouts at company events
- Verbal affirmations and reinforcement
- Social media mentions
- Awards and trophies
- Peer recognition programs
Normally, recognition goes hand-in-hand with tangible rewards (we call this a rewards and recognition program).
For example, you might give an employee a gift card or bonus for doing a great job leading a project. After months of consistently taking initiative, you might give them a raise or promotion.
The 4 types of employee recognition
Broadly speaking, there are four ways to acknowledge your manufacturing team members and reward their contributions.
- Formal recognition normally takes the form of a promotion, award ceremony, or some other type of big event. It's perfect for highlighting exemplary work and long-term dedication.
- Informal recognition is more spontaneous and casual. It can be as simple as saying "Great job!" when someone does something well, or taking the time to send a personal note of appreciation. It helps build relationships between managers and team members, and it fosters a workplace culture of recognition.
- Tangible recognition involves giving a team member a physical reward. It could be company swag, a cash bonus, or tickets to see their favorite sports team. It helps your employees feel appreciated for the work they do.
- Intangible recognition is accompanied by non-physical rewards, such as career advancement opportunities or extra PTO. When you want to show you're invested in your employee's success, you'll go for intangible recognition.
Running an effective employee recognition program requires you to have a healthy mix of all four types. Knowing when it's appropriate to use each type plays a big role in your ability to motivate and retain your employees.
Workplace recognition is crucial for manufacturing workers.
The Manufacturing Institute studied employee engagement and retention, and the factors affecting it. They found:
- Nearly all (97%) of employees who were recognized by their employer reported high overall job satisfaction.
- 96% also agreed they would recommend their company as a great place to work.
- Those who weren't treated fairly or recognized for their contribution were 10x as likely to say they planned to find a new job within the next year.
In other words, manufacturing companies that effectively acknowledge their workers' contributions crush it at employee retention and talent acquisition. They also have a more engaged and productive workforce. And a meta-analysis of 100,000+ teams finds companies with recognition programs are 21% more profitable.
So, why, according to Gallup, do only 11% of manufacturing employees say their company has a formal recognition system in place?
If you're reading this as part of the other 89%, just know you're leaving tons of money on the table (and risking losing your best employees).
What to recognize employees for in the manufacturing industry
In the manufacturing sector, anything related to productivity, safety, teamwork, or innovation is worth celebrating.
Here's a look at a few of the most acknowledgement-worthy accomplishments you'll find from your team members:
- Consistently exceeding production targets
- Going above and beyond typical duties and responsibilities
- Displaying stellar teamwork and collaboration
- Introducing a new process or technology that improves efficiency or quality
- Reporting potentially dangerous safety hazards (e.g., faulty machinery)
- Delivering exceptional customer service
- Exemplifying your company's core values
- Leading or significantly contributing to a project or initiative
- Completing training or education programs to enhance skills and knowledge
- Maintaining excellent attendance and following safety protocols
Basically, any time you want to reinforce positive behavior, you can do so by recognizing your employees for a job well done.
10 ways to give manufacturing employees the recognition they deserve
1. Celebrate employee appreciation holidays.
If you were thinking to yourself, "Where do I even start with all this?" you're in luck. Preexisting holidays are the perfect starting point when you want to establish recognition as a fundamental characteristic of your company culture.
Thousands of companies around the world celebrate Employee Appreciation Day every year on the first Friday of March. This is an excellent excuse to remind all your team members why their work matters so much to you.
Then, in the first Friday in October, you've got Manufacturing Day. Normally, when schools and companies observe it, the main goal is to inform and inspire job seekers to join the manufacturing industry. But it's just as easy for you to mark your calendar and use it as an opportunity to set up an event for your team.
2. Prioritize milestones in their personal and professional lives.
If you're looking for excuses to give your team some extra praise, employee milestones are also low-hanging fruit.
- Onboarding completion
- Birthdays
- Work anniversaries
- Promotions
- Performance (e.g., hitting quarterly production targets)
- Company achievements (record profits)
Since they're different for each employee, they'll happen sporadically throughout the year. That means you'll have a continuous stream of quick and easy ways to give your employees some love.
To go above and beyond, also recognize major milestones in their personal lives, like an engagement, wedding, adoption, or the birth of a child.
For instance, when you know an employee is set to take parental leave soon, start planning the team's celebration of their return. Then, use Compt to follow it up with a family stipend.
3. Hold an Employee of the Year awards event.
This is a fun one, and it's not hard to set up. It's the best way to commemorate different team members' massive contributions over the course of a year.
You can make it more formal, but these events usually take place offsite, from the usual work environment. A nice dinner and a few drinks at a rented event space will suffice.
Pick a few employees of your own, them ask your workers to nominate each other for awards in categories like:
- Leadership (acting as a positive role model for new hires and other colleagues)
- Teamwork (for the ones who are always helping coworkers)
- Innovation (making suggestions and recs that make your manufacturing plant safer, more productive, or more profitable)
- Community service (volunteering, participating in your employee giving program, or representing your company at a charity event)
- Customer service (going above and beyond to keep clients happy)
- Rising star (for new or less experienced employees who are already making a big impact)
- Most likely to make you laugh (because not everything has to be so serious all the time
You can create awards specific to your organizational culture, too. Bonus points if you custom-engrave trophies with the unique achievement each person is being recognized for.
4. Use manager-to-peer recognition.
Leaders need to recognize outstanding performance at the individual, group, and organizational level. You can do so in a number of ways, but the most impactful include:
- Personal thank you messages
- Public shoutout in a team meeting or company-wide communication (e.g., Slack channel, newsletter)
- Quarterly or annual performance reviews
- Gift cards or small tokens of appreciation
- A wall of fame that displays employee achievements for all to see
- 1:1 performance evaluations
- On-the-spot recognition for daily victories
As a leader, recognition goes beyond verbal and written acknowledgment, though. It's also your responsibility to create structure around professional development opportunities, financial rewards, and career advancement.
Implement a spot bonus program, offer mentorship and career growth opportunities (e.g., project ownership, training), and implement a clear pathway to raises and promotion.
5. Add a peer-to-peer element, too.
Peer recognition mechanisms make employees feel valued in ways managers and supervisors can't. They foster a sense of community within your manufacturing company.
According to data from Workhuman, employees who only get recognition from their peers a few times per year are 39% more likely to leave within the next year and 3x as likely to be actively disengaged. So it's a big deal for your productivity and employee turnover, too.
There are plenty of ways to incorporate a peer-to-peer aspect in your recognition program. The best place to start is with a dedicated Slack or Teams channel, where employees can give each other shoutouts and highlight each other's accomplishments. You can also set up a program where they nominate each other for awards, like the ones mentioned in Employee Appreciation Day.
6. Recognize daily wins on the spot.
As a leader, your ability to truly create a positive workplace culture centered around appreciation and recognition comes down to the little things you do each day.
We love a good special occasion. Don't get us wrong. But the occasional party or gift pales in comparison to consistently feeling seen, heard, and valued.
Incorporate the following to amplify the impact of your employee recognition program:
- Encouraging words ("You're crusing it today, let's keep up the great work!")
- Personalized messages ("Hey, I just wanted to let you know I saw how you helped our new hire figure out our software yesterday, and I really appreciate it!")
- Public shoutouts (e.g., through a walkie talkie or over the PA system)
Facilitating a culture of recognition starts at the top. If you make it a priority to express appreciation for your employees on a daily basis, their peers and direct reports will follow suit.
7. Take your kind words to social media.
The added benefit to recognizing employees in public is you're helping them improve their credibility and personal branding. Plus, you're showing up to customers, investors, and job seekers as a company that cares about its employees' well-being and success.
Share photos, videos, and brief stories about the employees who do the most on LinkedIn, Instagram, and X (formerly Twitter).
And for the ones who come up with innovative solutions or display impressive leadership, leave recommendations on their LinkedIn profile for others to see.
8. Provide tangible incentives for meeting production goals.
When it comes to rewarding employees in an inclusive, unbiased way, you simply can't beat an employee incentive program. Plus, it gets them excited about hitting ambitious targets and expands their capacity to deliver excellent results.
You might offer financial incentives, like cash bonuses, gift cards, or some kind of reimbursement for meeting or exceeding production goals. Or, you could offer non-monetary incentives like additional PTO or flexibility.
It's worth mentioning incentive programs work best when (a) everyone in equal roles has the same opportunity to succeed and (b) they follow a clear framework. That is, employees know exactly what needs to happen in order to earn the reward.
They aren't well-suited to subjective accomplishments like "exceptional teamwork" that don't have key performance indicators tied to them.
9. Offer tuition reimbursement for employees continuing their education.
You might not immediately put tuition reimbursement in the "employee recognition" category, but it most definitely is. Especially in the manufacturing industry, where employees with specific technical skills are in high demand.
Supporting employees who want to get a Bachelor's or Master's degree, a certification like Six Sigma, CPT, or CPIM, or complete a training program in-house is the best way to recognize their ambition and highlight its value to your organization.
10. Host outings with your whole team.
Creating time for employees to let their guard down, have some laughs and fun, and get to know each other is how you foster positive relationships within your organization. And setting those events around an employee promotion, birthday, or company achievement makes them recognition-focused.
Especially if your facility runs 24 hours, it might be challenging to get everyone together at once. But it's worth planning some kind of outing a few times per year so that employees develop relationships with their colleagues.
Considerations when launching your manufacturing employee recognition program
The quicker you can recognize and reward an employee for a job well done, the better.
You wouldn't give out bonuses six months after your employee crushes it on a project, would you? Timeliness is the most important factor in wether recognizing employees has an impact at all.
It's also worth mentioning frequency matters when you're trying to maximize employee engagement (workers are 4x likelier to report feeling engaged when they recall being recognized within the last week). Don't hold off on acknowledging an employee's contributions until their annual review comes around.
Employees don't all want the same type of recognition.
According to one survey, 43% say they prefer to be recognized in private by a 1:1 manager. 10% say they'd like to be publicly acknowledged in front of their peers. And another 9% prefer written recognition (like an email or Slack message).
If you asked your team, you'd probably get different results entirely. And that's precisely why you have to ask.
The same way you'd run an employee benefits survey, poll your employees on the types of recognition they prefer and how they feel about your current approach.
Based on their feedback, customize your approach to best fit the needs and preferences of your team.
Not all recognition program formats fit an employee's contributions.
Major accomplishments and consistent productivity deserve more than a pat on the back. For a small victory that day, like finishing a huge production run on a time crunch, a warm and enthusiastic statement of appreciation is more fitting.
Follow these general rules of thumb when determining whether to give a verbal thank you, tangible reward, or comprehensive recognition program:
- Verbal/written praise for daily accomplishments and small contributions, as an immediate response to a one-off accomplishment, or in addition to tangible rewards for larger achievements.
- Tangible rewards for meeting production goals and innovative thinking
- Comprehensive program formats (employee incentive programs, tuition reimbursement, etc.) for major accomplishments and consistent productivity.
Start with insights from your team, and track progress.
Before you launch your employee recognition program, you have to know where you currently stand.
Gather data from...
- Employee engagement and retention metrics
- Surveys
- Exit interviews
- 1:1 performance evals
- Observational notes from managers
From there, you'll know what employees feel most disconnected from and where you need to make changes.
Spreadsheets, calendar reminders, and mental notes won't cut it.
If you want to run a successful program, you need software built for rewards and recognition.
Use Compt to automatically offer bonuses for milestones, birthdays, and KPI-based achievements (plus one-time gifts for when you want to show some extra appreciation). You can also use it to administer access to different employee perks like gym reimbursement.
Request a demo to see how it works.