We discuss how to implement employee recognition and employee rewards on this blog, but we don’t always discuss why we should spend time and resources on these employee programs. Today, that changes. Here are three positive outcomes of employee recognition that you could (and should) enjoy the perks of when you properly execute an employee recognition program within your organization. These aren’t just our opinion, they have actually been observed by companies who have successfully implemented employee programming.
Positive Outcomes of Employee Recognition
- Positive Impact on Engagement: According to the SHRM/Globoforce Employee Recognition Survey, of the companies that spend 1% or more of their total payroll amount on employee recognition, 85% see a more engaged workforce. Why? Because employee recognition programs make employees feel valued at their organization which brings them closer to their work, their employer, and their colleagues. Bring your staff in with recognition, creating unity and positivity.
- Lower Turnover Rates: This is a big one. In a hot job market where the “company man” has long since moved on to his next opportunity, employers constantly struggle with retention rates. According to a study by Bersin and Associates, companies that provide “ample recognition” have a 31% lower average voluntary turnover rate. Why? See above. Employees want to feel valued. The more they are recognized for their accomplishments, the more they realize that their employers value their investment in their work and will reciprocate that investment.
- Stronger Business Results: The same study from Bersin and Associates also confirmed the ultimate positive outcome of employee recognition: that recognition leads to happier employees which ultimately leads to a stronger staff and better business results. According to the study, companies with “sophisticated recognition practices” are 12 times as likely to experience positive business outcomes and win more deals as a team. Recognized employees create agile, resilient organizations that can solve problems and persevere.
Using Incentives is Key to Creating an Engaged Workforce
Learn more about how the use of incentives plays a critical role in modifying employee behavior. Download the Creating a Fully Engaged Population white paper now.