WHAT RESEARCH SAYS ABOUT EMPLOYEE RECOGNITION PROGRAMS
Employee recognition is essential for companies that value and want to retain their best talent. A company’s employee recognition program has the power to either keep people on board or make them head straight for the exit.
In addition, demonstrating appreciation for your employees can even boost your financial returns. Better organizational climate and motivation, higher productivity, better customer service and product development are just some of the consequences of having employees who feel valued.
Check out some revealing data about employee recognition programs that will surprise you:
Surprising facts about employee recognition programs
1. 87% of employee recognition programs focus on company tenure
Having an employee who stays 20, 10 or even 5 years in your company is definitely something to celebrate. But it shouldn’t be the only occasion during which the person is celebrated. Can you imagine spending an entire year without any kind of recognition? Well, that’s what happens when you focus too much on company tenure.
Employee recognition should be based on contribution and effort. If an employee did a good job, let them know right away. Just because a person has been at the company for who knows how long, regardless of their contributions, doesn’t mean that they deserve recognition.
2. 58% of employees believe recognition is the best way to increase engagement
We have already made it clear that, in general, employees do not feel valued in their jobs. And there is no such thing as “too much recognition”. If you really want to retain your talent, motivate them by recognizing their work. This simple validation has the power to make productivity levels soar.
3. Millennials require immediate recognition for their achievements
If you wait a week or two to recognize the achievement, your employee may already have forgotten what they did. Time is of the essence when it comes to showing appreciation. Praise performance right then and there, not later, because this tiny massage of the ego will do wonders for that employee’s future work.
4. 69% of employees would work more if they felt that their efforts were being appreciated
Recognition brings about productivity. Think about it: in the early years of school, teachers reward children’s good performance with stars and positive comments for homework. In return, students strive even harder to keep earning recognition. And who says that doesn’t work for adults?
People want to be recognized for their contributions. They want their work to have meaning and when you don’t recognize them, it’s essentially the same thing as ignoring their existence.
5. Only 14% of organizations offer their managers the necessary tools for recognition and reward
Organizations do not provide the right tools for leaders to motivate their employees. Meanwhile, employees want to share the recognition they receive. The ideal solution is to have a tool that allows recognition in a transparent and simple way.
6. Companies with employee recognition programs that are effective in increasing engagement have 31% fewer voluntary layoffs
We all know that turnover is extremely expensive for companies.
So imagine wasting all that money on recruiting, hiring and training someone when, in fact, you could have a results-based employee recognition program that helps you hold on to the best talent and properly allocate employees so that they get more (and better quality) work done.
7. 50% of employees believe that being acknowledged by their managers improves their relationship and builds trust with their superiors
Relationships between managers and employees are stigmatized as tense or resentful. But that doesn’t have to be the case. To make the business succeed, this relationship needs to be built on a basis of trust.
And how do you gain the trust of your employees? By showing gratitude and recognizing the good work they do. Recognition does not need to come only in the form of verbal affirmation. Allowing an employee to work on a project with autonomy is recognition, it shows that you trust his work.
Employee recognition impacts various aspects of the work environment, from customer service to team rapport. Companies need to stop thinking about it as a cute but difficult idea to implement, and understand all the benefits it can bring to the business.
With software such as STRATWs ONE, you can access data and KPIs related to employee performance, among other features, allowing you to provide more accurate feedback and develop systems based on meritocracy and variable compensation.
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