Why is recognition important in the workplace

They need a program, principles and procedures to help them apply recognition effectively within their area of responsibility. Employee recognition remains an undervalued management technique. The results can be used to prove the need for greater employee recognition.

This figure is as conclusive as you could get — it resulted from interviewing 2. The cost of a recognition system is quite small and the benefits are large when implemented effectively. Meta-analysis conducted by the Gallup Organization of the results from 10, business units in 30 industries found [a meta-analysis is the statistical analysis of results across more than one study].

These principles are timeless; further research shows they are universally consistent:. Measuring the direct impact on profitability is difficult because it is only one of many factors influencing employees in every workplace.

However, case studies make a persuasive case that bottom-line benefits have been achieved through recognition schemes. These results correlated highly with high guest-satisfaction scores, which showed a strong intent to return, and therefore directly flowed to increased profitability.

Firstly, it is important to understand the context, and to keep in mind several key organizational principles for giving employee recognition — as explained in this article. You can be a catalyst in your organization. Initiate it in your area. You could start doing it discreetly, not even telling others about the change, but doing it and observing the results.

You can spontaneously praise people — this is highly effective. To many employees, receiving sincere thanks is more important than receiving something tangible.

Employees enjoy recognition through personal, written, electronic and public praise from those they respect at work, given in a timely, specific and sincere way. This day-to-day recognition is the most important type of recognition. Day-to-day recognition brings the benefit of immediate and powerful reinforcement of desired behavior and sets an example to other employees of desired behavior that aligns with organizational objectives.

It gives individuals and teams at all levels the opportunity to recognize good work by other employees and teams, and it also gives the opportunity for them to be recognized on the spot for their own good work. Recognition is the number one ask from employees in this new normal. And meeting this desire can have a huge effect on key contributors to your bottom line, like employee engagement and retention. In fact, companies that practice recognition are more likely to improve stock prices, NPS scores, and employee performance.

There may not be any aspect of the employee experience more impactful than engagement, and recognition is the fastest way to an engaged workforce. Doubling the number of recognitions in an organization leads to a five-point increase in employee engagement. And organizations with highly-rated cultures of recognition are more than twice as likely to see improved employee engagement.

Frequent recognition makes the impact even greater. The Achievers Workforce Institute found that half of employees recognized within the past week were very engaged. Bayhealth Medical saw the link between engagement and recognition firsthand when they implemented a recognition program. Bayhealth employees felt a greater sense of belonging and connection with their coworkers, a key part of engagement. Employees who feel appreciated are more likely to stick with an organization, in good times and bad.

And recognition is among the most effective non-financial factors employee retention. Organizations that rate their culture of recognition highly are also 3 times more likely to see increased employee retention. Employee retention is a problem facing a lot of businesses. There is a remedy to this. The more your workforce feels appreciated, the higher your retention rate. The links between retention and appreciation should be considered.

The Ultimate Guide for Employee recognition is driven mainly by company culture and tools at the businesses disposal. This guide will have demonstrated the many benefits associated with recognition and reward.

However, the question that remains is how do you make these a reality in your workplace? No two workforces are exactly alike. You need to assess the appropriate tools to reach employees in all locations and time zones.

Methods of reward to reach specific individuals will also need to be considered. Achieve this by evaluating your current communication tools and receiving employee feedback. On the back of this research you can develop a recognition strategy and can map out processes. An effective recognition and rewards programme may incur some cost, but the ROI is highly significant. As well as the savings of lower turnover, productivity will also increase as a result.

Investment may be needed in the form of technology and rewards themselves. Planning and investment are of course important, but your aims cannot be achieved if recognition is not embraced from the top.

Your business needs to embody a culture of appreciation, starting with leadership. In a Gallup workplace study, managerial recognition was the most memorable among employees. It impacts individuals through recognition, but also influences business culture. This makes it essential for leaders to be central to employee appreciation.

Next, you need to train, develop, motivate to them to perform, and ultimately, keep them. The answer — incentive programs. Employee retention is the ability of an organization to retain its employees.

Employee rewards and recognition is one of the possible approaches to retain your staff. One example can be financial incentives such as raises, bonuses, and stock options. Employee recognition gifts are also a great plus — for example, a gift card from their favorite store or a token of appreciation for every five years of service. Incentive programs as means of employee recognition in the workplace is a great way to show appreciation for your employees, keep them motivated, and make them stay.

Another benefit of employee recognition in the workplace is that it can be the foundation of cultivating a culture of self-improvement. One of the best ways for staff recognition is to provide them with opportunities to learn and make themselves better at what they do. To take it a step further, it will also be great to incentivize learning — reward those who have taken the time to focus on self-improvement.

A simple greeting before and at the end of the day is an obvious but sometimes overlooked form of recognition. Saying a sincere thank you and apologizing for some misunderstanding can be subtle ways of showing appreciation and respect.