Employee recognition has evolved from being a nice way to thank employees for their contribution, to something that can have a significant and meaningful impact on your workforce and your business.
However, as with anything in life and in business, it’s all about how you do it - do it the right way and you reap the benefits, do it the wrong way and you waste your time, energy, and your company’s resources. This is where Empuls comes into the picture.
What Is Employee Recognition?
For your employees, recognition means:
The organization respects them by acknowledging their contribution.
Their peers appreciate them for the value they add to the workplace.
They get relevant feedback to help them learn and grow in their roles.
For your organization, recognition means:
Motivating employees to give and do their best.
Driving performance across the organization, and achieving key business goals.
Celebrating individual, team, and company successes.
Why Is Employee Recognition Important?
1. Recognition has a direct impact on employee engagement
Recognition has been proven to be a key driver of employee engagement. Organizations with an active recognition program have shown more than 14% higher engagement levels compared to organizations without one. Check out the article from Deloitte to know more.
2. Employees who are recognized are happier
Employee happiness, like employee engagement, is also known to have a positive impact on a business. Happiness leads to employees feeling more positive, getting more creative, becoming better at solving problems, and developing into more effective collaborators, all of which contribute to a more successful workplace. A study by The Boston Consulting Group found that the most important single driver of employee happiness is getting appreciated for their work.
3. Builds trust between employees and the organization
Employee trust is another factor that has been proven to have a positive impact on the success of a company. From productivity to innovation, companies that operate on mutual trust have been found to outperform those with low levels of trust.
What's more? A study by Work Human shows that one of the most effective ways of building trust for managers and senior leaders is through frequent recognition. They found that employees who were recognized were 34% more likely to trust senior leaders and 33% more likely to trust their managers, compared to those who had never been recognized.
4. Increases productivity
Another key element to the success of your company is productivity, since having employees who work harder and smarter leads to a more productive work environment. Studies have shown that recognizing employees can increase their productivity, with one study showing that 69% of employees would work harder if they felt their efforts were better appreciated, and another study showing that employee productivity can jump as much as 30% when employees receive just one piece of praise a day.
5. Reduces employee turnover
The next reason has to do with the impact recognition can have on employee turnover, with employees staying longer because they feel recognized. One study found that employees who do not feel adequately recognized are twice as likely to say they’ll quit in the next year, and another study found that for the respondents who were planning on switching jobs, a lack of recognition was the number one reason.