Many business owners pay lip service to the notion of employee recognition and in fairness, a great many companies already have some kind of employee recognition program in place.
There are also a lot of holdouts, however, and given that, it’s worth at least discussing why employee recognition really matters.
There are a number of reasons, all backed by a wide range of studies and surveys, but here are what we’d consider the “Big Three.”
Increased Productivity
Let’s start with the simplest and most pragmatic reason. Simply put, taking time to recognize the achievements of your employees makes them more productive. How much more? The results have varied from one survey to the next, but a meta study revealed that the average increase is 12%.
Let that sink in for just a moment. How much would your company benefit if every employee working for you was 12% more productive than they are today?
When you fully appreciate that, and you realize how easy it is to tap into that additional productivity, most business owners wind up chomping at the proverbial bit to set up a recognition program and start reaping those benefits.
Recognition Reduces Turnover and Increases Employee Job Satisfaction
As above, multiple studies have shown that meaningful employee recognition increases employee satisfaction which decreases turnover rates. Training new employees is expensive. It’s time consuming, and it can be frustrating. While a recognition program won’t outright eliminate turnover, it will reduce it markedly, and that will save you time, headaches and money.
It’s What The Modern Workforce Expects
This one is a bit less tangible than the first two, but it’s nonetheless true. In days gone by, increasing hourly pay was the go-to means of keeping employees happy. These days, that still works, but only to a point. Today’s workers are in it for more than just the money. Once they’re making enough to have all their basic needs met, further pay raises won’t really do much to impact job satisfaction.
Instead, what today’s workforce is looking for is autonomy and recognition. The ability to do their own thing under the banner of the company, with the understanding, of course, that their work, done their way, aligns with the company’s objectives and values.
If you take the time to recognize your work force and you give them some freedom and flexibility, you’ll find that they actually want to come to work. More importantly, you’ll find that they’re willing to stick with you through good times and bad.
The simple truth is that there are a great many reasons to consider, and practical benefits to be gained by setting up a well-designed employee recognition program. It stands as one of the easiest ways you can increase your bottom line while simultaneously making your company a better and more enjoyable place to work. That’s win-win.
Your company benefits by a fatter bottom line and your employees benefit in a variety of ways.
If you haven’t already established a recognition program, now is the time to start setting one up. You’ll be very glad you did.