3 Reasons for Having an Employee Recognition Program
Rewarding employees for a job well done can be expensive. A poll conducted by Gallup found that 87 percent of workers surveyed in countries all over the world were disengaged with their jobs. Higher levels of engagement have proven time and again to lead to higher levels of employee satisfaction, greatly increased productively levels, greater loyalty to the company, higher profits, and better customer satisfaction. One of the best ways to increase engagement is to make sure the employees feel appreciated. Having a strategic recognition program in place is one of the most effective ways to show your employees you appreciate their hard work and dedication. The following are three benefits for companies to implement recognition programs and some ideas for rewarding your employees for a job well done:
Improve Business Results
It shouldn’t come as any surprise that happy and motivated employees are better equipped to address company concerns. Members of staff need to feel that they have a vested interest in selling the brand and its products and services. Many senior managers consider recognition programs an investment rather than an expense. People want to be rewarded for good work, and they’ll be mentally far better equipped to face the monotony of modern corporate culture if they know there’s a good bonus and other rewards waiting for them.
Decrease Employee Turnover Rate
While money is obviously the main motivator in almost any job, offering a pay raise isn’t the most effective method to hold on to employees. In fact, studies have shown that about half of employees leave within two years after accepting a raise, a statistic that clearly indicates that salaries and job satisfaction don’t always correlate. Often as important is employee recognition, which has proven to lower turnover rate significantly. Employees who are widely recognized and rewarded for their work are about 30 percent less likely to leave the company. Other benefits include increased happiness and productivity and reduced stress and frustration levels. A lower turnover rate also saves money, since a direct replacement can cost up to half the previous employee’s annual salary.
Increase Engagement and Productivity
An employee recognition program is all about clear communication, transparency, and having a solid rewards-driven system in place. Such a strategy leads to greater employee engagement, since it makes members of the staff feel like they’re a part of something bigger. An employee who has a vested interest in the direction of the company is heading will be genuinely concerned about the day-to-day running of the business. People who claim to be disengaged with their jobs may be an employee whom is in need of professional growth. This could be an excellent time to look at additional positions and/or responsibilities that could challenge a dedicated employee. Additionally, employees consider praise from managerial staff to be the top motivator.
There are many ways to implement an employee recognition strategy, and most of them don’t require a huge investment. Some of the most popular methods include publishing the company’s greatest achievers in email newsletters, using staff meetings as an opportunity to include praise, or preparing regular status reports. However, a more original and engaging employee recognition program might include an achievement- or score-based system complete with monetary rewards and prizes for your top achievers.