It feels like employee recognition is one of those trends in the business world that’s everywhere right now. There’s new studies and surveys every week talking all about the many benefits you can reap from putting an employee recognition program in place. But what exactly is all the hype about? Why is employee recognition so important?
Well, it turns out that making your employees feel recognized, appreciated, and valued at work does a lot more than earn you some good karma. Here are just 3 reasons why employee recognition is a big deal.
3 Reasons Employee Recognition Is Important
Happy Employees = Happy Company
How your employees feel about their work and your company matters for more than just job satisfaction levels. The collective morale of the team can hinge on your company culture, be it positive or negative. And when morale is up so is productivity, according to a 2018 study. In fact, employees who are happy with their work-life balance are 21% more productive and dedicated to their work than people who aren't.
One of the easiest ways to increase motivation and build morale is by offering up some recognition to your team. One survey found that 70% of employees believed morale would go up if management simply said “thank you” more. It’s a little thing you can do that makes a big difference to your team members and your business.
Retain Top Talent
There’s plenty of reasons to find and retain fabulous great, talented employees. You want innovative, dedicated employees who know what they’re doing to help your company grow and succeed.
And you also don’t want to keep spending money and wasting time on finding and training new hires. Background checks, assessment tests, and job training can end up costing you $3,500 for just one new employee. And you can kiss productivity goodbye, because it takes an average of 6 weeks to fill a position. Simply put, if your employee retention rates are bad, it’s costing you in both cash and productivity.
So how can you make sure to keep your top talent right where they are? Well, according to a survey by the U.S. Bureau of Labor and Statistics, the number one reason people left their jobs was that they felt like they weren’t respected enough or trusted to work independently. Making employee recognition a priority is the key to recruiting and retaining great employees.
Create Company Culture
You might think that company culture is just one of those buzzwords that everybody loves to use even though it doesn’t actually mean anything. But actually, building and maintaining a positive company culture should be a big priority for your leadership, especially if you’re trying to attract the best job candidates. That’s because almost half of job-seekers surveyed by Jobvite ranked good company culture as the number one thing they look for in a company. In fact, some candidates will actually turn down a job offer if they feel that the company culture is not what they’re looking for!
If you’re looking to improve or build your company culture, base it on mutual respect and recognition. When employees feel valued and engaged, they’re more productive and happier with their work. Making employee recognition a part of your team’s culture means everyone will feel like what they do matters. And we’re not just talking about top-down recognition-- peer-to-peer affirmations are just as important.