Lack of recognition at work is among the top reasons your employees look for another job. Despite this, many companies fail to recognize employees outside of performance reviews and annual years of service awards that leave team members feeling unappreciated day-to-day.
But there is a huge upside to this morale crisis: employees who feel valued work harder and stay longer. And companies that distinguish themselves by running effective employee recognition programs are better at retaining top talent — and customers. Studies have shown that a 5-point increase in employee engagement is linked to a 3-point increase in revenue growth the following year.
What can your organization do to keep top performers motivated and make sure every employee feels appreciated for their hard work? It starts with building a culture of recognition.
Practicing employee recognition means that your organization regularly and visibly acknowledges the hard work of employees. Employee recognition programs honour ongoing achievement and contributions, both formally and informally. Recognition can take a variety of forms, and it should consist of both frequent social recognition and tangible employee rewards, like prizes and bonuses.
Effective recognition programs create a culture where leaders and colleagues regularly celebrate each other’s excellence and encourage top performance. This in turn motivates your employees to work harder and stay with an organization that clearly values their contributions and treats them well. It’s a win-win for everyone at your company.
Don’t wait to recognize employees until an achievement is a distant memory or save appreciation for the private setting of a one-on-one meeting. Recognition should be given regularly and immediately. Research shows that 75 percent of employees who are recognized at least monthly report that they are satisfied with their jobs and 60 percent want to be recognized more frequently than they are.
Express appreciation for leaders and colleagues who regularly practice recognition as well.
Demonstrating these benefits to your organization’s leadership is a necessity for starting an employee recognition program. Emphasizing how employee recognition programs contribute to long-term success is a great way to get executives on board with recognition.
By praising good work in real time across multiple channels of communication, everyone can see it and is encouraged to join in.