Why Employee Recognition is so important? Discover its 4 main benefits!
Well done! Every time you hear it, you feel that you have succeeded, and someone recognizes what sometimes you do not allow into your thoughts – that you have done something right! Only one sentence can give you a huge motivational kick and energy to keep going, especially when uttered by your superior. The power of employee recognition is huge and therefore it is worth expressing your appreciation more often.
What is employee recognition?
In the simplest terms, it is expressing your appreciation to an employee. These are all gestures or words addressed to employees, the purpose of which is to give praise and acknowledge their accomplishments. It can be a simple gesture like a high five or fist bump, as well as verbal praises, an official congratulatory letter, award, or discretionary bonus. For what do organizations usually give praise? They praise for small and large daily successes, but also for high sales, actions popularizing the company’s values, and even heroic acts of courage during threatening situations.
Employee recognition is one of the most crucial factors influencing employees’ engagement, and their productivity. As statistics show, employee recognition has a direct impact on the level of employee retention, 63% of employees who feel recognized are unlikely to look for a new job. However, there are more reasons why organizations should show employee recognition.
What are the benefits of employee recognition?
Every act of appreciation leaves a mark. Employee recognition makes the employees feel important, appreciated, accepted, and valuable. It affects many spheres of both employee and organizational life.
#1 It strengthens employees’ sense of belonging and engagement.
According to Harvard research, 72% of businesses rank recognition as having a positive impact on employee engagement. Why? It is all about emotions. By directly expressing appreciation for someone’s contribution to the company, and their mere presence in the company over a lengthy period, you create an emotional bond with the employees. A sense of belonging to the company is also strengthened. People feel noticed and want to continue to prove that they are good and that their input is valuable. On the other hand, they like to feel complimented and praised. Who doesn’t?
#2 It brings greater job satisfaction
To a place where you feel appreciated and praised you are more willing to come, that is obvious. An appreciated employee feels liked and happy in the workplace. This affects also the working atmosphere and the situation among employees. It is worth building team morale by positively motivating and emphasizing their importance to the functioning of the business. An employee who is praised and feels part of the team does not want to let his colleagues down. When recognized, employees care more about their work and are happy to contribute to the success of the company.
#3 It contributes to the culture of excellence and self-improvement development
A reward for exceptional performance at work, a discretionary bonus, or even recognition with a small gift for contributions to team building motivates an employee to continue to grow. Employees who know that their commitment is seen, appreciated, and rewarded try even harder, open their heads to innovative solutions and seek growth opportunities. Engaged employees are more productive when it comes to working, but also when it comes to looking for ideas for the team- and self-development. They are more motivated and more likely to engage in less formal activities.
#4 It increases employee retention
As numbers say, 53% of employees will stay longer in a company if they feel appreciated. Moreover, as many as 81 percent of employees admit that they are more motivated to work when they are praised by their boss. It should come as no surprise that employees who are appreciated and rewarded feel good about their workplace and are loyal to the company. They are less likely to change jobs, especially since not all companies realize the importance of employee recognition. So, it’s worth taking care of talents and rewarding their contributions to the company in advance.
Why employee recognition is that important for the organization?
Employee recognition is the easiest way to motivate employees and boost their engagement. Appreciated employees are more productive, and job satisfaction also translates into quality customer service and better CX. By introducing a culture of employee recognition, you take care of the employee experience, integrate employees, and look after their well-being. You retain talent who, along with their development, grows your organization. You don’t waste time and money on recruiting and onboarding new employees. Thus, you also take care of your company’s competitiveness as an employer.
As you can see, it is worth considering implementing solutions aimed at employee recognition. They bring mutual financial and emotional benefits. Sometimes it is enough to promote showing gratitude with the words “thank you” to see the first results.