Note: This article has been created in collaboration with TechTag, an online magazine for the digital economy in Germany. You can find the article here.

The digital transformation in companies continues to progress and the range of solutions offered covers more and more business units. However, it is not easy for every company to embrace these trends and ongoingly test new solutions to create a modern working environment of the future.  

As one of the best known & most successful tech company of our time, Google not only offers a variety of digital solutions for its customers, but also uses innovative digital solutions internally. One example is the digitalized and structured process of employee recognition. But how does this solution work and what advantages does it have for Google?

This article provides answers to these questions. In addition, it is intended to encourage non-tech companies to consider whether the recognition of employees in their own company is still appropriate.

Relevance of employee recognition

The recognition of employees is often an underestimated topic. All too often, we get disappointed by colleagues or superiors, because it feels like our own commitment in the working environment is not valued accordingly. The result is dissatisfaction in the workplace, which can lead to demotivation, lowered productivity, and possibly even to thoughts of changing jobs. In contrast, satisfied employees are more likely to spread a positive atmosphere in the work environment and even become advocates of the company externally as well.

Moreover, regular appreciation is direct and positive feedback to colleagues. In this context, it does not matter whether the appreciation comes from a team member or a manager. To receive positive feedback for a special commitment in the working environment is motivating and increases the probability that the employee will repeat his or her commitment again.

Especially in the age of “War for Talents” it is important for companies to stand out in order to attract new personnel and outperform the competition in talent acquisition. A modern culture of employee recognition can play its role in making a company more attractive as an employer.

The standard ways of employee recognition of German companies

It is well known that German companies are not necessarily among the “early adopters” of innovative and digital solutions. As a result, many companies are lagging behind in their approach to employee recognition. The typical ways of thanking employees are:

• The simple „Thank you” between colleagues
  Employees thank each other for their commitment, which is basically very positive. However, this way of saying “Thank you” fades away very quickly. Or who can still remember the last 10 “Thank you” received from colleagues?
  Moreover, this appreciation takes place at a level where the supervisor has no insights or combined overview.  As a result, the recognition for the work assignment rarely finds its way into the next performance review or the next promotion decision.

• The “Christmas party Thank you” from superiors to the entire team
  The Christmas party is of course a joyful occasion to honor the achievements of the past year. It is not unusual to highlight the work of the entire team. From the standpoint of the individual employee, however, this type of “Thank you” is very impersonal and in no way refers to the actual individual commitment to the company.
  
  
• The “Feedback talk Thank you” from superiors to team members
  The superior uses the feedback talk as an opportunity to thank his/her team member for his/her commitment so far. In this very formal situation, the “Thank you” might seem forced and as part of the agenda of the meeting. This reduces the value of the acknowledgement and only rarely increases the motivation of the employees in the long term.
  
  
• The “Role model Thank you” between colleagues or from superiors to the team member
  For really special occasions, it happens (unfortunately too rarely) that employees thank team members with a small gift (e.g. bouquet of flowers, chocolate bar) for special commitment. This kind of “Thank you” is very positive and goes in the direction of how appreciation should be lived within companies. However, a clear structure is also missing here, which would enable a company to draw the best possible conclusions from a work culture characterized by appreciation. In other words: the company has no insight into who has received recognition and who has not.
  
  
• The forgotten “Thank you” between colleagues or from superiors to the team member
  It is simply forgotten to say “Thank you”. This often leads to a decrease in motivation for another strong commitment in the working environment and increases dissatisfaction at the workplace. Although it seems natural to say “Thank you” for a commitment of a colleague, this is a common occurrence.
  
  

Google’s solution

What all standard recognitions have in common: There is a lack of structure. No matter what kind of recognition you look at, the information generated by a recognition gets lost. Google is aware of this and has developed its own digital platform where employees can recognize each other for special efforts.

The system is built up quite intuitively. If an employee wants to thank his colleague, the appropriate addressee is selected from a list, a corresponding “Thank you” message is written and the recognition is sent. Since Google promotes a work culture full of appreciation, the recipient receives a financial bonus for each “Thank you”, which is financed by the company and paid at the end of the month as a small bonus on top of the salary. A small (but fine) sign of appreciation towards the employees.

To avoid abuse of the tool there are some rules. For example, every “Thank you” is validated by a manager. This ensures that the reason for thanking somebody is sufficient to justify the financial contribution by the company. There is also a freeze period between employees who have interacted with each other on the platform. This avoids recognitions that are made purely out of gratitude for the recognition received.

Google benefits from this solution from multiple aspects. In addition to a motivating working atmosphere, the responsibility of recognising employee performance is transferred to the employees. This leads to a certain degree to employee empowerment. Moreover, the company receives a large amount of information on the deployment of individual employees as well as on previously undiscovered employee skills. This information is used to ensure a fairer & more targeted development of individual employees.

Although costs occur due to the financial contribution that Google pays to its employees, it is admirable how Google promotes the solution in the company. Employees are explicitly told by their superiors to recognize the efforts of their colleagues. This shows that the company is 100{a1e87a1b60fb18245882eac76358661b7920a2b633d6ae5d1a0ed67a2c50264d} committed to a working culture of mutual recognition. This is a sign that strengthens employee loyalty as well as employee satisfaction.

Outlook

Anyone who wants to leave the standard world of employee recognition behind and offer their employees a modern working atmosphere must take a step forward and dare to approach new and innovative solutions. Only those who have the courage to question the status quo will stay an attractive employer for applicants in the long run. The good news for non-tech companies is that no software skills are required to use digital solutions. Today, there are many vendors who are passionate about developing and delivering innovative solutions for a modern work culture.