Recognition: Benefits for Your Business
There’s little doubt that employee recognition—especially when done both thoughtfully and intentionally—has an enormously positive impact on all involved. From a simple increase in productivity to retaining talent, there are seemingly countless studies that materially show how well employee recognition programs work for all involved. Even with all the irrefutable data, many employers overlook the need to recognize achievements in the workplace.
Employees who feel valued, appreciated, and recognized in the workplace think nothing of going the extra mile for the organization. According to a survey conducted by Socialcast, 69% of workers agree that they work harder when their efforts are appreciated. If you need even more supporting evidence, consider the following areas of impact:
Company Culture: While employees are the heart of any business enterprise, strong company culture is the soul. The soul is the amalgamation of the company’s vision, voice, goals and purpose for achieving things on behalf of the collective. Honoring employee efforts in thoughtful ways soothes that company soul while paving the way for employee happiness. Remember, when employees are happy working, achieving success is almost inevitable.
Employee Advocacy: When it comes to attracting talent, there is no more practical vehicle than employees who advocate for their organization. Employees who are recognized for work achievements will share on social media platforms, which shares the company’s culture to a vast audience. Company exposure that is willingly consumed is a potent recruiting tool.
Increased Profits: Even as there is light at the end of the pandemic tunnel, profit shouldn’t be a four-letter word. Every organization strives to generate higher profits, or they wouldn’t be in business. Building and maintaining long-term growth largely depends on how employees both feel and perform at work. A recent study by SHRM found that recognition programs help companies increase their profit margin by a staggering 58%. The correlation between employee recognition and higher profits is undeniable.
Simply put, employees who feel that their efforts matter to their employer consistently outperform the employees who don’t. That performance equates to a more robust company culture, employees who become advocates and increased profits for the organization. This is precisely why progressive organizations increasingly look to outside experts to help them look inward to ensure their employee recognition programs’ positive impact wash over the entire enterprise. At the same time, companies that ignore the benefits of a cohesive recognition program will be left behind.