Recognition is more than just a “nice thing to do” for your employees. It’s a powerful communication tool that reinforces the most critical outcomes people create for your business.
The best formula is a combination of ongoing recognition that emphasizes the little wins, encouraging employees to keep going with positive behavior, and recognition for “above and beyond” performance that sets apart the most significant achievements in a unique and social way.
Build Morale
The Gallup Organization recently estimated that there were 22 million actively disengaged employees costing the economy up to $350 billion a year in lost productivity. One reported cost of low morale was unscheduled absenteeism, which cost an average of 9 percent of company payroll.
- If a worker is publicly recognized for their efforts, the rest of the employee population sees that an organization rewards hard work.
- On the other hand, morale can be negatively impacted if employees feel their company fails to offer recognition.
Enhance Retention
According to the Society for Human Resources Management/Globoforce semi-annual survey of HR leadership practices, companies with recognition programs experienced 22 percent lower employee turnover rates. Among companies that allocated at least one percent of their payroll to recognition:
- 85 percent said it had a positive effect on employee engagement.
- 61 percent reported improvement in retention rates.
- 59 percent noted stronger business financial results.
Once it is properly implemented across an organization, a recognition program energizes a company and its culture.
Bolster Performance
Sincere recognition is a profound motivator for employees to strive for improved results. When people are more fulfilled in their work and committed to their colleagues and company, they – and the organization –perform better.
- The percentage of employees working at 90 percent capacity or above was 53 at companies with strong recognition programs, versus 40 at businesses with weaker programs.
- More than twice as many employees were highly engaged at companies that focused strongly on recognition compared to those that did not.
Incite Innovation
Recognition can be a key driver of continuous improvement. In another industry study, when employers were asked how many of their workers had generated new ideas within the last month to enhance products, services or systems, the results were compelling.
- Employees receiving strong recognition generated an average of three new ideas per month. Workers at companies with weak programs offered 1.8 new ideas.
- Workers proactively seek new ways to improve efficiency when they are properly recognized. In companies with weak recognition programs, 54 percent of employees regularly sought new ways to be more efficient. In companies with strong programs, this figure jumped to 87 percent.
When asked which benefits contributed most to the generation of ideas:
- 27 percent of employees cited ongoing recognition efforts.
- 41 percent cited “above and beyond” recognition.
- By comparison, 32 percent said they would prefer a five percent salary bonus.
Are you looking for better approaches to recognition, productivity, and CI and workforce development? The expert team at Premium Staffing can help. Read our related posts or contact us today to learn more.
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