Creating a positive, robust and healthy working environment is essential for the success of any organization.
One of the major ingredients for achieving this is employee recognition. Employee recognition is acknowledging the efforts, contributions, and achievements of employees within an organization through employee rewards programs.
When employees are more valued, recognized, and motivated, they are likely to go the extra mile for their organization.
Some of the major types of employee recognition that can uplift and increase work morale are bonusly or monetary recognition, thank you letters or emails, verbal praise, peer-to-peer recognition, awards and nominations, and leader-to-team member recognition.
Why employee recognition is important?
- Increased productivity and profitability
When employees are happier and recognized, they are more productive. Employees who believe in their company’s culture of recognition and mission deliver exceptional work at a faster rate since they trust the company and can see themselves advancing in their careers. A culture of recognition begets an outstanding work outcome. Congratulating and rewarding employees for excellent work done makes it easier for them to work harder and produce more.
- Employee retention and reduced employee turnover
Employee retention is fundamental to cutting down turnover costs, such as posting job descriptions, screening resumes, interviewing candidates, and negotiating. Employee retention is highly determined by effective employee acknowledgement and recognition for good work, leading to increased job gratification and also keeping high performers motivated. Low employee morale can make the employees feel burnt out, undervalued, helpless and lacking growth opportunities, triggering them to opt for other jobs, resulting in a high turnover costs.
- Customer satisfaction.
Employees are the face of the company, and most customers will judge company capabilities based on the interactions and impressions of your staff. When staff are recognized and treated well, it enables them to engage in their work and offer exceptional customer service. Good customer service leads to an increase in revenue.
- Improves employee engagement.
Employee engagement is the mental and emotional investment or connection an employee has toward their work and the organization’s goal. Engaged staff are more productive and highly motivated because they are aware that their organization values them and meets their need. A highly engaged work force leads to improved productivity, customer’s satisfaction, creativity and innovation, reduces absenteeism, and encourages team work. The more recognized the employees are, the more engaged they become.
- Reinforces values and brand
Employees are directly responsible for communicating with potential customers on a daily basis. This means that they represent the company mission, values, and brand. An appreciated staff will bring out a positive persona that reinforces people’s confidence in your company’s products and services.
- Creativity and innovation
Recognizing employees makes them feel more engaged, and this allows them to be more innovative and creative in solving problems. Innovation and creativity gives a company a competitive advantage in the market place.
- Boost employee motivation and morale.
Performance based recognition and giving employees opportunities to grow their professional sills highly motivates them to accomplish their goals. In return it drives productivity and the overall performance of the organization.
- Employee brand advocacy
An employee advocate is someone who gives positive exposure and raises brand awareness by recommending a company products and services to a friend a family member or using the digital medial platforms. Employee advocacy is a strategy that can seamlessly increase the growth of an organization. Employees who are regularly recognized are more likely to recommend their workplaces product and services to others.
- Employees mental health
Having positive mental health is paramount to keeping up with productivity and coping with challenges and setbacks at work. Recognizing employees for their effort helps uplifting their emotional well-being.
A meaningful culture of recognition in a company can go a long way. If you take care of your employees by rewarding and acknowledging them, they will take care of your business.
