People want to be appreciated. Unfortunately, some 40% of workers feel that employee recognition is not prioritized in their organization. Over 77% expected to be thanked, yet a third of employees say they have not been shown the gratitude they deserve.
When employees do not feel valued, they get demotivated, dissatisfied, and disengaged. And this affects their productivity, which in turn impacts the organization’s bottom line. There is also a huge chance they will resign: two-thirds say they will likely leave their job if they do not feel appreciated.
Employers and executives are just not making employee recognition a priority. Or they are just not doing it right.
Showing appreciation to employees is not just giving an occasional pat on the back or highlighting their achievements during their annual performance review. Organizations must institutionalize it. These are some of the benefits of an employee recognition program:
Engaged employees work harder, go the extra mile, and feel connected to their company. Sadly, only a third of employees are engaged at work. But that can change. Fifty-eight percent of workers say that employee retention and recognition can increase their engagement levels. Just being recognized by their managers will make employees nearly 60% more engaged at work.
Employees want to feel that what they do at work matters. The pandemic has made people evaluate the role of their work in their life. Fifty-six percent want to contribute more to society. And 70% say their work defines their sense of purpose. An employee recognition program aligned to the organization’s mission and values can provide meaning at work.
Recognition boosts employee engagement, which then improves productivity. Around 79% of employees say recognition makes them work harder, and 78% say it makes them more productive. And productivity leads to profitability. The best companies are 40% more productive and enjoy 30% to 50% higher profits.
Remember how the lack of appreciation will make workers leave their jobs? There is an enormous price from high employee turnover – hiring, onboarding, and training new employees cost money. Companies with effective employee recognition programs have 31% lower voluntary turnover.
An employee recognition program benefits not just your employees. Organizations that invest in social recognition reap numerous rewards. They are also 4x more likely to improve stock prices, 2x more likely to improve NPS scores, and 2x more likely to improve individual performances.
Eighty percent of organizations have an employee recognition program. The question is: does it work? To ensure your employee recognition is effective, you must follow certain best practices. Whether you are about to start one or thinking of improving it, these are the steps to take to build a successful employee recognition program.
An employee recognition program should not just be an HR project. It should involve all stakeholders for it to be fully embraced:
Designing your employee recognition program should answer these key questions:
The best-designed recognition program will fail if it is not executed well. Follow these best practices:
Your goals for your recognition program must be measured against numbers to determine if they are being met.
Your employee recognition program needs to be improved and updated to ensure it remains relevant and exciting.
Using a rewards and recognition platform will make it easy to administer your program and allow your employees to choose and claim their incentives conveniently. WorkProud sets the tone for a culture of recognition by providing a system that involves all stakeholders from all levels of an organization. We offer a unique and patented global rewards fulfillment service that is customizable and highly personalized, with rich analytics, data visualization, and reporting capabilities.
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Every month, we share news, knowledge, and insight into what we believe is a pretty simple proposition: If you are “proud of your work and proud of your company,” you are more engaged, more productive, and more likely to stay with your company for the long haul.