Employee Recognition Is Essential: Stats You Can't Ignore
Dec 19, 2022 · 8 mins read ·Company Culture, Employee Retention, People Management
A lot has changed in the past few years—the recruiting landscape included.
There’s a battle to find, hire, and retain top talents. As a result, companies and business owners are busy developing ways to boost organic growth, worker productivity, and business revenue.
The company's attempts to improve the workplace are as vigorous as ever, from providing new incentives to creating flexible workspaces.
But in their drive for fresh concepts and methods, businesses might need to pay more attention to one of the most straightforward techniques: employee recognition.
What is employee recognition?
One of the most critical engagements and performance-related chances that managers and leaders have likely passed on is employee recognition.
All the ways an organization expresses gratitude for the contributions of its staff are referred to as employee recognition.
Employers praise employees for things like:
- Displaying the desired behavior
- Exceeding expectations
- Career highlights like tenure or promotion
It may or may not be monetary compensation. Recognition can take many different forms.
Employee recognition supports specific actions, practices, or behaviors that lead to improved performance and fruitful business outcomes.
Why is employee recognition important?
Employees are motivated by workplace recognition because it gives them a sense of success and helps them feel valued for their work.
Recognition has been shown to increase productivity and loyalty to the company, which results in higher retention. It also increases individual employee engagement.
The act of recognition not only shows appreciation for the employee and inspires them, but it also conveys to other employees what success looks like.
Recognition serves as a vehicle for personal gratification and a chance to reinforce the desired organizational culture for other employees.
While most people would associate incentives and recognition with monetary bonuses or opulent awarding ceremonies, showing appreciation for your employees doesn't have to be costly or glitzy.
Employee recognition can take the form of a simple pat on the back or a sincere comment. A simple "thank you" email or a cordial greeting at work can also suffice.
Let’s talk stats
You've likely heard how vital employee recognition is. But do you understand why?
Employee appreciation goes beyond just enhancing team spirit. Additionally, it improves employee engagement, corporate culture, and team performance.
Still not convinced of the effectiveness of employee recognition? Here are some compelling statistics demonstrating employee appreciation's importance to team success.
Enjoy a 37% increase in revenue with happy employees
According to Shawn Anchor's positive psychology research, a contented and engaged workforce is the single most significant benefit in the modern economy.
Almost every company and the educational outcome is improved by employee happiness, according to a decade's worth of research:
- Sales have increased by 37%
- Productivity has increased by 31%
- Task accuracy has increased by 19%
Given that we now understand how acknowledgement can appeal to our needs for connection, belonging, and respect, expressing gratitude at all times is a simple method to increase happiness.
Additionally, it has a two-way effect, lifting both the recipient's and the giver's spirits.
Underappreciated employees tend to think more about quitting
Employee retention is significantly impacted by recognition.
Over half of workers said they would quit a job without enough credit or appreciation for a job well done.
Nobody enjoys feeling as though their efforts are being neglected. Likewise, team members may feel unappreciated or unrecognized when managers fail to acknowledge their accomplishments.
Organizations must promote a culture of thankfulness and appreciation to keep top personnel energized and motivated.
Companies can encourage executives to compliment their staff more regularly by developing an employee recognition program with rewards and incentives.
64% of remote employees claim recognition fuels them to work harder
More people than ever before are currently working from home. So, what does that mean for corporate culture and worker engagement?
According to recent research, nearly 64% of workers believe that employee appreciation is even more crucial in a remote work setting.
It can be lonely to conduct business from home. However, team members might feel a feeling of belonging if they get regular, genuine praise from their supervisors and peers.
Many organizations overlook the importance of recognition
Employee appreciation can increase productivity in addition to making employees feel good.
A 2016 study published in American Behavioral Scientist found that public praise improves team performance.
Simply put, employees would work harder to accomplish team goals when they earn praise for their efforts.
Unfortunately, many businesses undervalue the significance of developing a culture that encourages acknowledgment. In the previous year, 65% of employees did not receive any appreciation.
With millennials making up a substantial chunk of the workforce, recognition is even more critical.
The millennial generation has ushered in a new employment era over the past ten years. A regular 9 to 5 job and a consistent income are no longer sufficient.
Instead, they look for a place of employment driven by purpose that inspires them personally.
Many businesses are under the impression that millennial workers are primarily interested in benefits, such as free beer and ping-pong tables. However, the truth is that millennials simply want to be respected as more than a demographic.
Millennials will provide their best effort when they feel respected, acknowledged, and cared for.
Organizations should develop an employee recognition program and foster an organizational culture that supports employee well-being to retain millennial workers and avoid quiet quitting.
Employee recognition doesn’t have to be monetary
If you are a business owner passing up the opportunity to build a culture of recognition and rewards for fear of added cost, think again.
There are other ways to honor employees. For example, 65% of workers choose non-cash rewards.
Employee surveys reveal that 65% of respondents strongly agree that gift cards and travel rewards are more lasting than cash payouts.
According to a survey, 85% of workers say management should commend employees for a job well done anytime it occurs, and 47% of workers believe new growth prospects are a better method to reward them for their accomplishments.
From a very young age, we yearn for approval from our parents, teachers, and friends. Our yearning for positive affirmation is so intense, especially during formative phases, that we can even interpret a neutral response as unfavorable.
As we enter the workplace, this remains the case. So much, so that employee appreciation helps keep your finest talent, boosts employee participation, and encourages performance excellence.
Looking for HR solutions so you can focus your efforts and time on matters aimed at boosting retention, productivity, and revenue? We got you covered.
Hezum is a complete solution that will power your small to medium-sized organization's HR Department. Give your team more time and freedom with easy and streamlined access to onboarding, time-off management, and other HR services. Check out the website to learn more.