Employee recognition is crucial in today’s workforce, and it’s not just a feel-good gesture. It’s a proven way to boost employee engagement, increase productivity, and reduce turnover rates.
Gallup finds that just one in three workers in the US strongly agree that they received recognition or praise for their good work in the past week. This lack of recognition can lead to disengagement and low morale, which ultimately hurts businesses’ bottom line.
First, let’s start with the statistics from Gallup. In their “State of the American Workplace” report, Gallup found that only 41% of employees feel that they know what their company stands for and what makes it different from competitors.
This lack of understanding can lead to a lack of commitment and engagement. However, when employees feel recognized and appreciated, they are more likely to be engaged and committed to their work. In fact, Gallup found that employees who feel recognized are more engaged, productive, and loyal than those who do not.
Their chances of leaving their current job are also lower. A company with high employee engagement levels outperforms a company with low engagement levels by 202%.
Furthermore, the Microsoft Work Trend Report shows that employee recognition is crucial in the new world of work, where remote and hybrid work models are becoming more prevalent.
The report found that 61% of employees feel more stressed, and 39% feel more isolated since the pandemic began. In addition, 54% of employees feel overworked, leading to burnout. This stress and burnout can lead to disengagement and turnover, both of which can be mitigated through employee recognition.
The report found that companies that have a strong recognition culture are 2.5 times more likely to be seen as innovative, 2.4 times more likely to be seen as highly effective, and 1.8 times more likely to be seen as highly successful.
So, what does employee recognition look like? It can take many forms, from a simple “thank you” to a more formal recognition program. Harvard Business Review suggests that recognition should be timely, specific, and meaningful.
For example, if an employee goes above and beyond on a project, their manager should recognize their efforts immediately and specifically. The recognition should also be sincere, meaning that the manager should genuinely appreciate the employee’s effort and not just go through the motions of recognition.
Benefits of Recognizing employees
1. Employee Engagement Increases
There are many benefits to recognizing employees, but one of the most significant is employee engagement. Having engaged employees leads to greater productivity, higher commitment, and fewer turnovers.
According to Gallup, highly engaged teams show a 21% increase in profitability. This increase is due to higher productivity, fewer safety incidents, and fewer absenteeism and turnover rates.
In addition, highly engaged employees are more likely to be innovative and suggest new ideas. The likelihood of providing great customer service is also higher, which leads to increased customer loyalty and satisfaction.
2. Positive Company Culture
When employees feel recognized and appreciated, they are more likely to feel connected to their colleagues and the company’s mission. This positive company culture can lead to better teamwork, increased morale, and a sense of belonging.
It can also help attract and retain top talent, as employees are more likely to recommend their company to others and less likely to leave for other opportunities.
3. Wellbeing
One of the most significant benefits of recognizing employees is the positive impact it has on their wellbeing.
Studies have shown that employees who receive regular recognition and appreciation from their supervisors and peers have better mental health, lower stress levels, and higher job satisfaction.
When employees feel valued and appreciated, it boosts their self-esteem and self-worth, which leads to a more positive outlook towards their work and life in general.
4. Increase in Productivity
Employee recognition also has a direct impact on productivity. It is more likely that employees will be engaged and motivated to perform better if they feel appreciated for their hard work.
According to a survey by Gallup, engaged employees are 17% more productive than their disengaged counterparts.
Gallup article clearly shows that 9% increase in productivity due to meaningful timely and personalized recognition.
Moreover, recognition and appreciation can act as a catalyst for employees to improve their skills and knowledge, which can further boost their productivity and overall performance.
Conclusion
However, it’s not just about the benefits of employee recognition. It’s also about the costs of not recognizing employees. According to a report by the Society for Human Resource Management, it can cost up to 200% of an employee’s salary to replace them.
This cost includes not only recruiting and training a new employee but also the loss of productivity and potential.
According to a survey by Gallup, engaged employees are 17% more productive than their disengaged counterparts.
Gallup article clearly shows that 9% increase in productivity due to meaningful timely and personalized recognition.
Moreover, recognition and appreciation can act as a catalyst for employees to improve their skills and knowledge, which can further boost their productivity and overall performance.
