Studies show that employee appreciation is necessary for a workforce to be engaged and loyal. This has many businesses asking themselves how often they recognize their employees. Failing to do so could hurt their companies, and this applies to start-ups and well established corporations.
An article in the Harvard Business Review discusses how important employee recognition is for the success of a company. It will boost morale, improve loyalty and help create an engaged workforce. New managers can also benefit from giving well deserving members of their team the recognition they deserve since it can help them forge bonds with their employees.
The HR consulting firm O.C. Tanner Co. conducted a survey of employees from a variety of large businesses to see how strong the connection is between being recognized and job satisfaction.
What they found is changing how businesses see their employees and view the importance of recognition. Seven out of 10 employees survey that received recognition at work were satisfied with their jobs. However only 39 percent of the employees surveyed that weren’t shown any recognition reported feeling any sense of job satisfaction. This lack of loyalty and engagement often results in companies losing some of their best employees.
The study also found that employee job satisfaction can jump by as much as 31 percent once they feel like they are being recognized for their work. This works especially well for new leaders looking to create trust and loyalty with their staff.
Even though showing recognition once can increase company loyalty and job satisfaction, if it is not done on a regular basis these positive results won’t last. The consulting firm’s study noted that while 80 percent of employees that were shown recognition in the last four weeks felt appreciated, only 42 percent felt job satisfaction when it had been two years or more since they were rewarded.
One study even found that employee recognition is just as beneficial for the rest of the staff when it is given publically. Presenting an employee with an award for exceptional service in front of their co-workers gives them a sense of pride in their work, and the rest of the staff knows that the company really cares about them. Not only does this improve job satisfaction, but productivity as well. All of this combined can help ensure a company’s success.
O.C. Tanner also conducted a study on the relationship between acknowledgement and loyalty. It found that in companies were employees were recognized regularly 87 percent stated that they felt a strong sense of loyalty to their manager and the company. In businesses were employees are seldom shown recognition only 51 percent said they had a good working relationship with their manager. A lack of company loyalty typically results in higher employee turnover rates and this can be expensive for businesses.
If companies want to increase employee engagement they simply have to show them some recognition. When the staff that deserves it the most feels that they aren’t appreciated, they tend to go to other companies that will show them the recognition they deserve.
If you need some ideas for employee recognition gifts, check out our recent blog post on the topic. You can also directly go to the Successories main site and make your purchase from a wide selection of employee gifts.