Why Rewarding Employees Matters More Than You Think

Recent data from our LinkedIn poll reveals that a staggering 63% of respondents don't experience any form of reward or recognition in their companies.?

With many studies stressing the importance of rewarding and recognizing employees, this reveals a concerning gap.

So, why is rewarding so essential in the modern workplace?

The Power of Recognition: More Than Just A Pat On The Back

Recognition is not just a tool for boosting morale. It's a powerful feedback mechanism that reinforces and pushes forward positive behaviours, and the benefits extend far beyond the individual being recognized.

When employees feel their efforts are acknowledged and celebrated, they not only become more engaged and motivated but are also more inclined to give their best. A study by Bersin by Deloitte underscored this by revealing that organizations with formal employee recognition programs witness a 31% reduction in voluntary turnover. Furthermore, these entities are 12 times more likely to experience robust business outcomes.

Deepening Engagement: The Link Between Recognition And Commitment

Several components create an engaged employee, with #recognition being a key element. Performance metrics, goals, and even manager efficacy all orbit around the powerful sun of recognition.

In alignment with this, studies showcased that employees, when they anticipate recognition for their work, are 2.7 times more likely to report high levels of engagement.

The Ripple Effects of Employee Recognition

Beyond the immediate lift in motivation and engagement, recognition has a cascade of benefits for businesses:

• Productivity Boost: Recognized employees are more focused and driven.
• Talent Retention: A whopping 31% dip in voluntary turnover is seen in companies with recognition initiatives.
• Employee Wellbeing: Lower stress levels and decreased absenteeism are often reported.
• Culture and Morale: Teams become more cohesive, and company culture gets an uplift.
• Customer Satisfaction: Happier employees lead to happier customers, resulting in loyalty and better satisfaction scores.

The SHRM Globoforce Employee Recognition Survey even highlights that companies practising active recognition experience a 28.6% drop in frustration levels among employees.

Taking The First Steps Towards Building A Culture Of Recognition

If your organization is among the 63% that lacks a formal recognition strategy, it's time to act. Start by utilizing one-on-one sessions or employee surveys to gauge if your workforce feels valued. Then, brainstorm with HR and management to devise a strategy that can be seamlessly integrated into the company culture.

In today's complex business world, employee well-being and company success go hand-in-hand. So, promoting recognition is essential. It's not just about the 'feel good' factor but about fostering a workspace where every contribution, big or small, is celebrated!