Retaining valuable employees is a challenge in the modern workforce. A lack of employee engagement is a potential cause for increased “job-hopping,” especially amongst younger talent pools. It poses critical issues for employers, but an effective employee recognition program is a low-cost solution that helps increase engagement and makes employees feel their contribution to a company is important to overall success. Studies conducted by OfficeVibe show 30% lower turnover in companies that implement recognition programs. In the same study, they found that 90% of employees report that recognition programs positively impact their engagement and self-motivation. This ultimately leads to an improved overall company culture that enforces a company’s goals to thrive both internally and externally. Let’s begin with why recognition is important.
Why It’s important
No employee likes to feel like a small cog in an unyielding machine, but it’s precisely this sense of disengagement that results in high turnover, predominantly in larger companies. Internal operations see improvement when a workplace acknowledges its employees’ successes, whether they are large scale goals or small task-oriented victories. Positive acknowledgment and feedback is important and allows employees to benchmark where they are succeeding and where they may be falling short. It gives them a sense of direction and retains engagement to improve internal operations, productivity, and overall morale.
External operations are affected as well, with 41% of companies seeing an improvement with customer relationships since implementing a peer-to-peer recognition program. These programs boost employee confidence in their required tasks related to external client relationships and inspires a productive internal company culture. Customers’ needs are met with rapid response and higher-quality services as a result, reflecting positively on the company.
Helpful Strategies and Tools
Research shows that only 14% of companies provide their higher-ups with the necessary tools and strategies to implement a rewards and recognition program. Recognition strategies do not have to be a large cost incurred by a company. Smaller, low-cost initiatives and strategies, as simple as a company-wide email, a shout-out in a meeting, or a one-on-one conversation, are sufficient to recognize goal associated achievements and behaviors that align with company values. Higher cost, long term initiatives, on the other hand, are the tools that will provide longevity to a recognition program. An employer’s recognition strategy should establish transparent visibility across all levels of the company and should be monitored and tailored to individual company needs. Investing in a human capital management cloud system helps organize and shape a recognition strategy that improves internal communication and aids in a higher level of transparency. These systems include work-life solutions that allow employee talents to be easily visible company-wide, and encourages personal connection throughout the various levels of the organization.