Why Employee Recognition Matters
Employee recognition is the crux of any successful business. Without it, firms are forced to compete with an unproductive workforce that can stunt growth. But even just on a human level, it’s easy to see the importance of employee recognition - nobody wants to feel underappreciated.
As obvious as this seems, many businesses fail to value their employees, which only exposes them to lower productivity levels and a high turnover rate. According to Survey Monkey, 63% of employees who feel recognized are less likely to search for a new job.
Businesses that integrate employee recognition programs reap the benefits of a more efficient and productive workforce, as these programs impact everything from staff turnover rate to profits.
Yet, despite these advantages, firms tend to overlook the importance of employee recognition programs and are forced to bear the brunt of an unproductive, inefficient and ultimately unhappy workforce. But by having one in place, you can avoid all of these detriments.
Let’s take a look at why employee recognition is crucial and how it can benefit your business.
Increased Employee Productivity
People who feel recognized work harder. It’s crucial to instil a sense of belonging in a company because when employees feel connected, they’re more likely to go above and beyond the call of duty to ensure that every quality procedure is met.
Whether it’s a report, a presentation or even a meeting with a client, the outcome of these tasks hinges on the level of detail dedicated to them. It needs a good reason for an employee to stay in the office after working hours to ensure that these quality standards are met.
Things also go a lot further the other way when these tasks are neglected or viewed with a lazy pair of eyes. This places a lot more weight on the importance of employee recognition because after all… why would you voluntarily do more work if your efforts won’t be acknowledged?
40% of employed Americans would put more effort into their work if they were recognized more often (Harvard Business Review, 2016)
Retain Employees Of The Highest Quality
Employees of the highest quality often have the highest standards. This mindset can be contagious since it’s likely to motivate others to rise to the challenge and always aim to exceed expectations.
If you have enough of these stars in the office then you’ll have a galvanized workforce capable of accelerating growth and overtaking your competitors. However, this can work two ways. Should your key employees feel undervalued they may share their feelings of discontent with others in the company.
This could lead to a toxic work environment where the lack of employee recognition blights everyone’s dedication to the job at hand. And if this scenario is stretched over a long period of time, your key workers will eventually hand in their notice and work for someone who appreciates their talents.
Now it goes without saying that the entire recruitment process can be time-consuming, arduous and expensive… especially if you’re trying to fill the biggest boots in your firm. But having an employee recognition programme will help you avoid these scenarios altogether and allow you to fully tap into your academy of talents.
63% of employees who are recognized are unlikely to look for a new job (HR Technologist, 2020).
Create A Positive Work Culture
How people perceive their work has a large bearing on the quality of their output. Put it simply, if you dread coming into work each day, how can you be productive? Motivation and drive are just as crucial to success as talent.
Only when you blend these ingredients together will your company have the recipe for success. At the heart of any successful business is a positive work culture that fosters a sense of community, teamwork and togetherness.
Creating this type of environment will have a ripple effect across your business, impacting everything from sales to revenue through to profits. Staff morale will be high. Your retention rates will be increased. And just as importantly, you’ll experience a surge in productivity.
But to achieve all of these benefits, employees must feel valued and this can be communicated in a special employee recognition programme. Having one in place will also give your employees a goal to aim at. Prizes, bonuses, opportunities for promotion - all of these are what motivates people to go the extra mile in the office.
47% of employees would prefer new growth opportunities as recognition for their accomplishments (Apollo Technical, 2021)
79% of American workers say company culture is an important job satisfaction factor (Speakap)
Increased Sales, Revenue and Profits
When it boils down to it, profit is what keeps companies alive. And it’s no secret that higher productivity levels often equate to higher profits. But to fully reap the fruits of your labor, the business must operate like a well-oiled machine.
From production to admin through to sales, everything is interconnected. Disengaged employees who fail to meet quality standards will have a negative impact elsewhere on the business… and if it’s truly disastrous, then somebody else will have to come and pick up the pieces.
To compound this even further, a domino-like effect can occur, affecting all corners of the business. This can have a devastating impact on efficiency levels, where everybody is trying to make up for lost ground as a consequence of rectifying another employee’s incompetence.
In the U.S alone, employee disengagement alone costs businesses up to $550 billion per year. According to a study by Gallup, a highly engaged workforce will provide companies with a 20% increase in sales as well as a 21% increase in profits.
So how can you make your employees more productive? Yes, you’ve guessed it - an employee recognition programme. With over $46 billion being spent worldwide in employee recognition programs (GoRemotely, 2020), businesses are fast realizing the impact it has on galvanizing their workforce.
Now if you don’t have one in place, then don’t worry - it’s easy to get started. At Piggy, we have a free demo for you to try that’s easy to set up and simple to run. To get started, head over to our free demo page by clicking here.