Many companies formally recognize the importance of employee recognition, but with today’s labor market heavily favoring the job seeker, making employees feel appreciated is more vital than ever.
Employee recognition comes in many different forms and choosing how to recognize employees should be based on input from them. Some programs involve monetary rewards, but making employees feel heard and appreciated doesn’t have to involve substantial costs. The return on even a small investment in employee appreciation can lead to major benefits, including higher productivity, lower turnover, and higher customer satisfaction.
Can Appreciating Your Employees Boost Productivity?
One survey from Great Place to Work found 37 percent of employees saying they would be motivated to do a better job if they received more personal recognition.
In conducting the survey, the company compared the general experience of workers who felt their contributions were recognized to those who don’t feel recognized. The survey revealed strong connections between recognition and several other benefits related to company culture. As opposed to those who report not feeling recognized for their work, survey respondents who feel recognized are more than twice as likely to say promotions at their workplace are fair, innovative thinking is appreciated and people around them go above and beyond expectations.
Conversely, survey respondents who said they don’t feel recognized struggled to explain the reason their workplace is great. When asked how their business could be improved, the unrecognized workers suggested they were treated unfairly and their work environment could be toxic at times, often using terms like “favoritism” and “scare tactics”.
Another survey on employee recognition from Achievers found lack of recognition is a major driver of high employee turnover. In the survey, 44 percent of respondents said lack of recognition is the main reason for wanting a new job. Additionally, 69 percent of respondents said recognition and rewards would motivate them to stick with their existing job.
While the survey also found that more paid vacation time would be a popular form of employee recognition, the ability to work remotely was also a popular reward.
Reinforce Company Values
Effective businesses create employee recognition programs that also speak to a company’s core missions and values.
When a staff member notices a certain behavior is generally recognized, it established concrete expectations for both performance and behavior. Specific actions — such as offering assistance or working overtime during busy periods — are associated with reward, it informs future decisions. When this occurs collectively, it has the effect of strengthening a company’s core set of values.
Many HR professionals understand this, and a survey from Workhuman found 83 percent of HR professionals saying employee recognition can strengthen company values.
Higher Customer Satisfaction
While talk around employee recognition tends to focus and strengthening the bonds between employer and employee, strong employee recognition has also been shown to have a major positive impact on customer satisfaction ratings.
Furthermore, the employee-customer relationship is a two-way street. When people receive good customer service, they tend to have more positive interactions with employees. This creates a three-way positive feedback loop that benefits all parties involved.
We Can Help You Find Great Employees Worthy of Recognition
At The Finders, we understand that strong recognition requires strong performance. To that end, we specialize in helping our clients identify best-fit candidates for their open positions. If your company is currently looking for great new employees, please contact us today.