5 Often Overlooked Reasons Why Employee Recognition Matters So Much
Employee recognition is one of the most important things an organization can do to motivate and reward its workers. Companies that regularly recognize employees have more than double the employee engagement, and often experience increased productivity and profits.
Despite the numerous benefits of employee recognition, many organizations still lack an effective employee recognition and rewards program.
If your company falls under this category, here are five reasons why you may want to start appreciating your workers.
But First, How Do You Give Out Employee Recognition Awards?
While rewarding your employees is crucial, you must do it right to get the most out of it. An act as simple as giving out awards can greatly impact the employee’s morale and job satisfaction.
Ideally, you shouldn’t use a one-size-fits-all approach when rewarding employees. There are dozens of reward programs, from simple thank-you notes and custom employee recognition trophies to exclusive trips and company-branded merchandise.
So, ensure you pick one that best suits what you want to achieve while giving your employees, as each type of recognition has its pros and cons.
5 Reasons Why Employee Recognition Matters So Much
1. Improves Workplace Environment
Most employees leave their jobs mainly because they feel underappreciated or overworked. Effective employee recognition programs can help improve the workplace environment and make employees feel happier and more satisfied with their jobs.
When workers like their working environment, they are more motivated to work harder and deliver better performance. An engaged workforce is also critical to your business’s success and could increase profitability by up to 21 percent.
2. Boosts Productivity
When employees are content, they tend to be more productive. In fact, a happy workforce could boost your productivity by more than 13 percent.
While offering your employees a higher salary is essential; it may not be enough. Therefore, create time from your busy schedule to reward your employees and let them understand how much their contributions matter to your business.
3. Improves Customer Satisfaction
Your workers may not be the only ones who benefit from your recognition program. Recognizing your employees could also go a long way in improving customer satisfaction for your business.
According to Harvard Business Publication, employees become creative and provide viable solutions to customers’ problems when motivated. This, in turn, can improve customer experience and increase customer loyalty for your business. And when customers are satisfied, your profits are likely to increase.
4. Attracts and Retains Top Talents
Attracting and retaining top employees in today’s highly competitive job market can be costly for most businesses. According to recent research by Gallup, replacing an employee can cost twice as much as their annual salary.
The good news is that a well-designed recognition program can help make your employees satisfied with their job, preventing them from leaving the company in search of greener pastures. In a study conducted by SurveyMonkey, out of 1,500 U.S. employees interviewed, 63 percent admitted that they wouldn’t leave an organization that recognized their efforts.
Therefore, companies must implement effective employee recognition programs besides offering lucrative compensation packages to attract and retain top talents.
5. Strengthens the Company’s Core Values
Every organization should make favorable treatment of employees a core value. An organization that cares about its workforce goes the extra mile to empower employees, knowing their growth will go a long way in the company’s success.
When you treat your employees well and appreciate their dedication, you show the rest of the world what matters within your organization and leave no doubts about what you stand for – appreciating the people who make up the company.