It doesn’t pay to overlook employee recognition if you want your employees to perform as highly as they can. Employee recognition can contribute to a happier, healthier, and more engaged workforce, but that’s not the only reason you should have an employee recognition program.
Employee recognition programs benefit employers, too. Employees with high morale are more engaged, and that makes them more productive. Let’s take a look at how employee recognition programs benefit both employers and employees.
Employers Get Increased Productivity and Sales
Everyone likes to feel appreciated – and feeling valued can uplift us enough to allow us to do our best work. People who feel that their contributions are a valued part of the business will stay motivated to keep doing a good job, whereas people who feel that their contributions aren’t noticed may lose that motivation quickly. Recognizing your employees’ contributions and achievements can give them the boost they need to remain engaged in their work.
Engaged employees do much more for their companies than those who are disconnected from their work. Gallup reports that employee recognition can reduce absenteeism by as much as 41 percent, and increase productivity by as much as 17 percent. According to the Harvard Business Review, peer recognition that fosters a stronger sense of trust between coworkers can increase productivity by as much as 50 percent.
Sales increase when the sales team is engaged, too. Motivated sales people drive business growth by reaching and surpassing sales targets. Financial incentives might not encourage your sales people as much as you would like, but the best motivations are quite often non-financial. Employee recognition programs are among the most effective non-financial motivational tools at your disposal.
Employees Are Happier at Work and at Home
Employees who get recognition from their immediate supervisors feel more emotionally connected to their managers and have higher levels of trust as a result. Peer recognition builds that sense of connection and trust between team members, which is why it’s crucial that employee recognition programs also have peer recognition components. Social employee recognition programs give everyone the chance to feel appreciated by peers and supervisors, and that can foster strong bonds between employees that make them feel 70 percent more connected to their peers and 70 percent happier in their lives at home.
Employers Get Free Advertising
You might have a policy against employees posting negative things about the company on social media, but have you ever thought about what positive things they might be saying about the company? They could be praising you and sharing positive comments, and they will if you use employee recognition programs to help build a foundation of trust on which to construct a healthy, supportive company culture. A global study from Weber Shandwick revealed that 50 percent of employees surveyed had shared photos, videos, or messages about their employers online; 39 percent shared positive remarks, and 33 percent did so on their own, without the urging of the employer.
Employees who are engaged and motivated are more likely to make positive posts about working for your company. Generating positive buzz on social media can help your company’s reputation, and make you more attractive to the most desirable candidates.
Both Sides Benefit from Increased Professional Training
Employees who receive praise and gratitude for their performance and contributions are employees who feel motivated to enhance their own skills and get better at their jobs. Motivated employees who know that their efforts are seen and appreciated by higher-ups actively seek out opportunities to build new skills. They may even be more interested in advancing their careers than they might be if they didn’t receive enough recognition at work.
Obviously, pursuing professional development opportunities helps your employees gain the skills they need to move further in their careers, but it also benefits the company. You get workers who have more skills than they did when you hired them, and that’s as good as hiring a new worker with more qualifications – except it’s cheaper, and you don’t have to take the chance that the new employee might have exaggerated his or her resume.
When it comes to employee recognition, everyone benefits – both employers and employees. Employers get more motivated, engaged employees who want to work harder to help the company reach its goals. Employees get to feel happier at work and may even be more motivated to pursue professional development. Start experiencing the transformative power of appreciation today when you implement an employee recognition program in your organization.